McKissock Basic Appraisal Principles Practice Test

In the sales comparison approach, you adjust prices of the comparables to reflect differences from the subject property, and then you analyze those adjustments to see if the data set and the adjustments themselves make sense. Once that analysis shows you aren’t getting a reliable picture from the current set of comparables, the next step is to select new comparables that will better reflect market conditions and the subject’s characteristics. This helps ensure the adjustments you apply are meaningful and that the resulting value indication is credible. Other steps belong in different parts of the process: reanalyzing adjustments would repeat the prior step, computing the replacement cost ties to the cost approach, and determining land value is a separate component often considered before addressing the improvements.