Generally, it is difficult to establish market value on property when the property

Generally, it is difficult to establish market value on property when the property

• A. Has many buyers in the market.
• B. Has had few recent transactions involving comparable property.
• C. Has many sellers in the market.
• D. Has a diverse range of prices for like kind and quality.

Answer: (B)

Market value is typically determined by comparing the property to recently sold, similar properties. The more recent and similar the transactions, the more confident the value estimate. When there have been few recent transactions involving comparable property, there isn’t enough good data to anchor the value, making it hard to establish a reliable market value. In such cases, appraisers may turn to other valuation methods (like the cost approach or income approach) and apply time and feature adjustments, but the lack of recent comparable sales is the main reason for the difficulty.

Market value is typically determined by comparing the property to recently sold, similar properties. The more recent and similar the transactions, the more confident the value estimate. When there have been few recent transactions involving comparable property, there isn’t enough good data to anchor the value, making it hard to establish a reliable market value. In such cases, appraisers may turn to other valuation methods (like the cost approach or income approach) and apply time and feature adjustments, but the lack of recent comparable sales is the main reason for the difficulty.