Certified Residential Appraiser Practice Exam

What technique ranks comparable sales in order of desirability for analysis?

1. Relative Comparison Analysis

2. Ranking Analysis

3. Market Segmentation Analysis

4. Qualitative Adjustment Technique

The correct answer is: Ranking Analysis

Ranking Analysis is a method that systematically evaluates comparable sales by arranging them based on their desirability, which is determined by various factors such as location, condition, size, and specific features of the properties. This technique allows appraisers to prioritize which sales are the most comparable to the subject property, facilitating a more effective analysis of how various elements influence property value. By using Ranking Analysis, an appraiser can identify the most relevant sales, which helps in deriving a more accurate estimate of the subject property’s value. This method enhances clarity in determining how different characteristics impact the property's worth compared to others in the market. Thus, it becomes a vital tool for appraisers seeking to make informed decisions based on comparable data. It emphasizes the importance of tailoring the analysis to the specific features and circumstances of the properties in question.