Which option would best help an appraiser determine a home value?

Which option would best help an appraiser determine a home value?

• A. Pulling active listings within 3 miles of the subject property
• B. Reviewing tax assessor records
• C. Closed sales similar to the subject, and in close proximity
• D. Finding out how much the subject sold for previously

Answer: (C)

Determining home value relies on the sales comparison approach, which uses recent, nearby properties that are similar to the subject. The best option is to reference closed sales that are similar to the subject and in close proximity because they provide actual transaction prices that reflect what buyers in the current market were willing to pay, with time and feature differences allowing for meaningful adjustments. Active listings show asking prices, not what buyers actually paid, and can misrepresent value. Tax assessor records give assessed values for tax purposes and often lag behind market conditions and use different methods than market value. The subject’s previous sale price may be outdated and wouldn’t capture current market dynamics or changes since that sale.

Determining home value relies on the sales comparison approach, which uses recent, nearby properties that are similar to the subject. The best option is to reference closed sales that are similar to the subject and in close proximity because they provide actual transaction prices that reflect what buyers in the current market were willing to pay, with time and feature differences allowing for meaningful adjustments. Active listings show asking prices, not what buyers actually paid, and can misrepresent value. Tax assessor records give assessed values for tax purposes and often lag behind market conditions and use different methods than market value. The subject’s previous sale price may be outdated and wouldn’t capture current market dynamics or changes since that sale.