Property Valuation

Appraisers in Minnesota use 'paired sales analysis' to:

AAverage two sales prices to find the market value
BIsolate and quantify the value contribution of a specific feature by comparing two otherwise similar sales that differ only in that feature✓ Correct
CFind the cap rate by comparing two income properties
DDetermine the value of a property by pairing it with a similar recently sold home

Explanation

Paired sales analysis (matched pair analysis) compares two sales that are identical except for one feature to isolate and measure that feature's value contribution. For example, comparing two identical homes—one with a garage and one without—to determine the market value of a garage in a specific Minnesota market.

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