Which strategy helps avoid bias when comparing comps across neighborhoods?

• A. Use multiple data sources and market-driven comps from diverse areas.
• B. Rely on a single data source.
• C. Exclude all neighborhoods with minority demographics.
• D. Adjust solely for property age.

Answer: (A)

Using multiple data sources and market-driven comps from diverse areas helps avoid bias by capturing a broader, more representative view of current market conditions. Relying on a single data source can introduce gaps, delays, or overrepresentation of certain neighborhoods or property types, which skews the value estimate. When comps come from varied neighborhoods and reflect actual recent market activity, the resulting adjustments estimate true value more accurately across different locations, rather than assuming one neighborhood's patterns apply everywhere. This approach also supports fair housing principles by not excluding neighborhoods with minority demographics and by focusing on comparable property characteristics and market dynamics rather than arbitrary rules like adjusting only for property age. In practice, assemble a mix of data sources (MLS, public records, recent sales), select recent, arm's-length comps with similar size, condition, and features, and apply appropriate time and locational adjustments to align them with the subject property.