In the appraisal's elements of comparison, which is considered an element of comparison?

• A. Insurance premium
• B. Financing terms
• C. Neighborhood zoning
• D. Age of property

Answer: (D)

When appraising, you compare properties by looking at differences in attributes that actually affect value. The elements of comparison are the tangible characteristics of the property itself (like age, size, and condition), along with location factors and the specifics of the sale (terms and date). Age of the property is a key physical characteristic because it signals depreciation and the remaining economic life of the home. A newer property typically carries more value than an older one with otherwise similar features, so appraisers adjust for age differences between the subject and the comparables.

Insurance premiums are ongoing ownership costs, not a property attribute used to compare value. Financing terms relate to how a particular sale was financed rather than to the property's innate characteristics. Neighborhood zoning influences location value, but the explicit element of comparison centers on the property's own age, physical features, and the sale’s terms and timing.