If there are only a few comparable sales available, what is likely to be true about the credibility of the value estimate?

• A. The credibility of the value estimate may be reduced
• B. It will be higher
• C. It will be unchanged
• D. No adjustments would be needed

Answer: (B)

Limited market data reduces confidence in the value estimate. In the Sales Comparison Approach, credibility comes from having enough similar transactions to anchor adjustments and reflect current market conditions. When only a few comparables exist, each adjustment has a larger influence, and the samples may not be representative, increasing sampling error and the range of possible values. This greater uncertainty lowers the credibility of the estimate, and the appraiser should acknowledge the limitation and consider additional data or methods if possible. The other ideas don’t fit because fewer comps don’t inherently push the value higher, nor do they keep the estimate unchanged or negate the need for adjustments.