Which best describes the paired sales technique used in appraisals?

• A. An appraiser averages three comparable sales to derive a single value.
• B. An appraiser locates several sales that are similar except for one feature and pairs them to extract an adjustment.
• C. An appraiser uses a single sale and applies adjustments to reflect differences.
• D. An appraiser uses cost data to estimate value.

Answer: (B)

Paired sales focus on isolating the value of a single feature by comparing two properties that are nearly identical except for that feature. When two sales are alike in location, size, age, condition, and all other attributes, the price difference between them represents the value of the differing feature. That difference becomes the adjustment you apply to other comparable properties that share the same feature difference, refining the estimate with a market-based measure. This approach reduces the influence of other variables because the pair is matched closely. The other methods don’t isolate one characteristic: averaging multiple comparables blends differences; using one sale with adjustments relies on a single transaction without the explicit paired comparison; and the cost approach uses construction cost rather than market value.