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.
Related Minnesota Property Valuation Questions
- In Minnesota, 'hypothetical conditions' in an appraisal differ from extraordinary assumptions in that:
- In Minnesota, an appraiser assigning 'market conditions adjustments' to comparable sales is accounting for:
- Plottage (assemblage) value in real estate refers to:
- Which appraisal approach is most commonly used to value single-family residential properties in Minnesota?
- Functional obsolescence in a home is best illustrated by:
- The gross rent multiplier (GRM) is calculated as:
- In the cost approach to value, the appraiser estimates:
- The 'highest and best use' of a property in Minnesota appraisal practice is defined as the use that is:
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