New Jersey Real Estate Exam Practice Question
Which of the following is least likely to be considered in establishing the value of a property by the sales comparison approach?
Correct Answer: B
Rationale: In the sales comparison approach, property value is primarily determined by comparing similar properties that have recently sold. The date of sale (A) is crucial for ensuring the data reflects current market conditions. The size of the lot (C) and square footage of the building (D) are also significant factors, as they directly influence property desirability and value. In contrast, the capitalization rate (B) is more relevant in the income approach, which focuses on the income-generating potential of a property rather than direct sales comparisons. Thus, it is least likely to be considered in this context.
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