Who determines which sales provide the best indication of value for the subject property?

Who determines which sales provide the best indication of value for the subject property?

• A. Lenders
• B. The appraiser
• C. Real estate agent
• D. The court

Answer: (B)

In the sales comparison approach, the person who determines which sales provide the best indication of value for the subject property is the appraiser. The appraiser selects comparable, arm’s-length sales that are most similar to the subject in terms of location, type, and physical characteristics, and then assesses how closely each sale reflects market conditions and property rights. They judge which sales are credible indicators and apply adjustments for differences to arrive at the value conclusion. Lenders, real estate agents, or courts don’t perform this selection and judgment—the appraiser does, using professional training, standards, and market data to determine the strongest indicators of value.

In the sales comparison approach, the person who determines which sales provide the best indication of value for the subject property is the appraiser. The appraiser selects comparable, arm’s-length sales that are most similar to the subject in terms of location, type, and physical characteristics, and then assesses how closely each sale reflects market conditions and property rights. They judge which sales are credible indicators and apply adjustments for differences to arrive at the value conclusion. Lenders, real estate agents, or courts don’t perform this selection and judgment—the appraiser does, using professional training, standards, and market data to determine the strongest indicators of value.