What is the primary purpose of the paired sales technique in real estate appraisal?

• A. To estimate value adjustments by comparing similar properties
• B. To forecast long-term population trends
• C. To replace the income approach
• D. To determine taxes

Answer: (A)

The paired sales technique is used to isolate and quantify the value of a single feature by comparing two properties that are almost identical except for that feature. By looking at the price difference between the paired properties, the appraiser estimates how much that particular attribute adds or subtracts from value. This helps when adjusting comparable sales in the sales comparison approach, providing a more precise estimate of the value impact of features like a renovated kitchen, an extra garage, or a view.

It’s not about forecasting population trends, it doesn’t replace the income approach, and it isn’t used to determine taxes. Those are separate methods or purposes in appraisal.