Properties that should be rejected as comparables for determining a subject property's value include all properties EXCEPT those sold within the previous six months. Which option correctly identifies the property that should be rejected?

Properties that should be rejected as comparables for determining a subject property's value include all properties EXCEPT those sold within the previous six months. Which option correctly identifies the property that should be rejected?

• A. Those sold within the previous six months
• B. Those not sold within the last year
• C. Properties with dissimilar bedrooms
• D. Those not sold within the previous six months

Answer: (D)

In pricing a subject property, you want comps that reflect current market conditions and are similar in key features. Recency is crucial because market demand, pricing, and terms can shift quickly. Sales that happened in the last six months are your best benchmarks, while older data may mislead you about the current value. The property that should be rejected is the one describing sales that have not occurred within the last six months. Those not sold in the previous six months pull in data that may no longer represent how buyers are currently valuing homes, making them less reliable as comparables. By contrast, properties sold within the last six months are appropriate comparables, because they capture recent market activity. Properties not sold within the last year are likely too old to reflect current conditions, and properties with dissimilar bedrooms may have significant features differences that affect value, beyond recency.

In pricing a subject property, you want comps that reflect current market conditions and are similar in key features. Recency is crucial because market demand, pricing, and terms can shift quickly. Sales that happened in the last six months are your best benchmarks, while older data may mislead you about the current value.

The property that should be rejected is the one describing sales that have not occurred within the last six months. Those not sold in the previous six months pull in data that may no longer represent how buyers are currently valuing homes, making them less reliable as comparables.

By contrast, properties sold within the last six months are appropriate comparables, because they capture recent market activity. Properties not sold within the last year are likely too old to reflect current conditions, and properties with dissimilar bedrooms may have significant features differences that affect value, beyond recency.