Certified Pennsylvania Evaluator Practice Exam

What is an important factor when assessing comparables in a real estate appraisal?

1. The amount of previous sales

2. Similarity to the subject property

3. The price of recent listings

4. The condition of the neighborhood

The correct answer is: Similarity to the subject property

When assessing comparables in a real estate appraisal, the most important factor is similarity to the subject property. This is crucial because comparables are used to establish a fair market value for the subject property by examining properties that are alike in key aspects. Having comparables that closely match the subject property regarding size, location, age, and features strengthens the reliability of the appraisal. This ensures that the characteristics that would affect value, such as the number of bedrooms, bathrooms, and overall square footage, are consistent across both the comparables and the subject property. While the other factors mentioned can contribute to the appraisal process, such as previous sales history, recent listings, and neighborhood condition, they serve more to provide context rather than influence the primary evaluation of comparable properties. The emphasis on similarity helps avoid skewed valuations that could occur if significant differences between properties are overlooked.