Illinois Real Estate Exam Practice Question
Which of the following would be the greatest limitation on using the sales comparison approach?
Correct Answer: A
Rationale: The greatest limitation when using the sales comparison approach arises from a low number of comparable sales (Option A). This scarcity can hinder the accuracy of the appraisal, as fewer data points make it difficult to establish a reliable market value.
Option B, while potentially problematic, may still allow for valid comparisons if the new subdivision reflects similar characteristics to the subject property. Option C is less concerning, as recent sales within one year generally provide relevant market data. Option D is unrealistic, as it is rare for all comparable sales to be identical; variations are expected and necessary for a nuanced appraisal.
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