Aaron is appraising a commercial property located along a river. Because of the desirability of the river frontage, location is a major factor in the value of this property, accounting for approximately 40% of its value. Aaron is only able to find one other sale of a riverfront property, Sale A, which occurred three years ago. Sale B is located several miles away, and it sold within the last month. Sale C is located only one block from the subject, but it has no river frontage. Which sale is likely to provide the best indication of value for the subject property?

• A. Sale B
• B. Sale A
• C. Sale C
• D. Sale D

Answer: (B)

The key idea is to use the most similar property as a basis for value, focusing on the characteristic that drives the subject’s value the most. For this parcel, river frontage is the dominant factor, contributing a large portion of the value (about 40%). Among the comparables, only the riverfront sale (Sale A) shares this critical feature with the subject. Sale B is distant and doesn’t indicate river frontage, so it reflects a different location context, which can distort the value. Sale C is close but has no river frontage, so it misses the main value driver. Although Sale A happened three years ago and would need a time adjustment to reflect current market levels, its matching riverfront characteristic makes it the best indication of value for the subject.