Property Valuation
An appraiser finds only two sales that are reasonably comparable to a unique Oregon property. How does this affect the reliability of the sales comparison approach?
ATwo comparables are sufficient to establish a definitive value
BFewer comparables reduce reliability; the appraiser may weight the cost or income approach more heavily✓ Correct
CThe appraiser must decline the assignment with fewer than 3 comparables
DThe sales comparison approach is not affected by the number of comparables
Explanation
Fewer comparables reduce the reliability and credibility of the sales comparison approach. An appraiser with limited comparables must use additional judgment and may give more weight to other approaches (cost or income) when reconciling to a final value. Adequate support is essential for a credible appraisal.
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