Property Valuation
The sales comparison approach to value is most reliable when:
AThe subject property is unique with no comparable sales
BThere are recent sales of similar properties in the same market area✓ Correct
CThe property is income-producing with stable cash flows
DCost data from local contractors is available
Explanation
The sales comparison approach relies on recent sales of comparable properties to estimate value. It is most reliable in active residential markets with sufficient comparable sales data, and is the primary approach for most single-family home appraisals in Pennsylvania.
Related Pennsylvania Property Valuation Questions
- An appraiser in Pittsburgh makes a negative adjustment to a comparable sale because the comp has a feature the subject property lacks. This adjustment:
- An appraisal using the 'income approach' that produces a value of $1,200,000 while the sales comparison approach indicates $1,050,000 for the same property. The appraiser would likely give more weight to:
- A Pennsylvania appraiser who determines that a property is not at its highest and best use (e.g., a single-family home in a commercial zone) must:
- When appraising a historic rowhouse in Philadelphia, the appraiser identifies that the plaster walls and ornate details are a market preference among buyers in that neighborhood. This represents:
- External (economic) obsolescence is different from functional obsolescence because it:
- An 'as-stabilized' appraisal of a Pittsburgh apartment building under construction estimates value:
- Pennsylvania's Board of Assessment Appeals allows property owners to challenge their assessment. The owner bears the burden of proving:
- The sales comparison approach to value is most appropriate for:
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