Paired sales analysis in the sales comparison approach is used to:
Why Isolate the value contribution of a specific property feature by comparing two otherwise similar sales Is Correct
Answer B: Isolate the value contribution of a specific property feature by comparing two otherwise similar sales
Exam Tip: Property Valuation
Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.
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- An adjustment in the sales comparison approach for a feature the subject property HAS but the comparable does NOT have requires the appraiser to:Property Valuation
- When adjusting comparables in the sales comparison approach, the appraiser adjusts the comparable, not the subject. If a comp has a superior feature, the adjustment is:Property Valuation
- In the sales comparison approach, an adjustment is made for a feature the comparable has but the subject lacks. This is:Property Valuation
- A NC appraiser uses 'paired sales analysis' in the sales comparison approach. This technique:Property Valuation
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Key Terms to Know
A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Math Concepts
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