easy · National Real Estate Exam valuation
During a transaction review led by Blair Ellis, the following issue arises: A buyer can purchase a comparable substitute for less than the asking price of the subject property.
How should the licensee handle the situation?
- The comparable is irrelevant unless it is physically identical.
- The cheaper substitute puts downward pressure on the subject's value.
- The asking price establishes market value regardless of alternatives.
- The subject must be worth more because it was listed first.
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