Current Affairs · Real Estate and Valuation
Consider the following statements regarding the market data approach in real estate valuation: Statement 1: The 'Comparison Method' of valuation requires the valuer to collect data on at least three to five recent sales of properties that are similar in size, location, and utility to the subject property to ensure a statistically significant comparison. Statement 2: Adjustments in the comparison method are typically made for 'Time' (if market prices have changed since the date of the comparable sale) and 'Location' (such as proximity to a metro station or a main road) using percentage modifiers. Statement 3: If a retail property is currently vacant, the valuer should assume a 'Zero Value' under the income approach because there is no existing cash flow to capitalize, regardless of the property's future leasing potential. Which statement(s) correctly identify the valuation principles and adjustment process for real estate assets?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Only Statement 1 is correct
- 2Only Statement 2 and Statement 3 are correct
- 3Only Statement 1 and Statement 2 are correct✓
- 4All three statements are correct
Correct answer
Only Statement 1 and Statement 2 are correct
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