Property Valuation
In Washington, a 'paired sales analysis' in the sales comparison approach is used to:
ACompare properties in two different neighborhoods
BIsolate the value contribution of a single feature by finding two sales that differ only in that feature✓ Correct
CCompare assessed and appraised values
DPair buyers with sellers
Explanation
Paired sales analysis finds two sales that are identical except for one specific feature (e.g.
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Key Terms to Know
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.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
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