21. An agent has been asked to provide a suitable comparable sale for a property being listed by his broker. Which of the following would be the most appropriate property for the agent to provide?
Answer: D
A house similar to the subject house in terms of size, style, and condition located in the same town that sold in the past 3 months
This option represents the most relevant comparable sale for the property being listed, as it matches the key characteristics of the subject property and is recent, thus providing an accurate market reflection.
A) a similar style house that sold three years ago and is located in the same subdivision
While this property shares a similar style and is in the same subdivision, its sale occurring three years ago makes it less relevant due to potential market fluctuations. Recent sales are generally more indicative of current market value.
B) a neighboring house of the same age and design, whose owner sold it to a nephew 6 months ago
Although this house is of the same age and design, the fact that it was sold within the family may not reflect an arm's-length transaction, which can skew the fair market value. Comparable sales should ideally be transactions that involved typical market conditions.
C) the same style and size house three doors down the block that is presently listed and being actively shown
This option refers to a property that is currently listed rather than one that has sold. Active listings do not provide actual sale prices and may be influenced by current market strategies, which can misrepresent the property's value.
D) a house similar to the subject house in terms of size, style, and condition located in the same town that sold in the past 3 months
This option is the most appropriate as it describes a property that closely matches the subject house's characteristics and was sold recently, making it the best indicator of current market value.
Conclusion
Option D is the most suitable choice because it provides a recent comparable sale that accurately reflects the market conditions and characteristics of the property being listed. In contrast, the other options either involve outdated sales, non-arm's-length transactions, or active listings, which do not offer reliable data for establishing a fair market value.