The assumption that a knowledgeable buyer would not pay more for property than what other buyers have recently paid for comparable properties,provides the rationale for the sales comparison approach.

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Quizplus · Accepted Answer

The statement is true. The sales comparison approach is based on the idea that buyers are not likely to pay more for a property than what other buyers have paid for similar properties. This approach involves comparing the property being appraised to other properties that have recently sold in the same area and have similar characteristics, such as size, location, and amenities. By looking at the selling prices of these comparable properties, the appraiser can estimate the value of the property being appraised.

The Assumption That a Knowledgeable Buyer Would Not Pay More