Property Valuation
In Tennessee, which of the following is a reason an appraiser might limit the number of comparables used in the sales comparison approach?
AMore comparables always reduces the accuracy of the appraisal
BInsufficient similar properties available in the market area✓ Correct
CUSPAP prohibits using more than 3 comparables
DThe lender instructs the appraiser to use fewer comparables
Explanation
In limited markets (rural areas, unique properties), there may simply not be many comparable sales available, requiring the appraiser to use fewer comparables or expand the search area and time frame.
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