Which of the following best describes how to use comparables in pricing claims?

• A. Use current, verifiable comps; present pricing support transparently and avoid cherry-picking data.
• B. Cherry-pick the strongest comps to justify the asking price.
• C. Only use comps from the same street.
• D. Avoid referencing comps in pricing.

Answer: (A)

Using comparables in pricing claims relies on current, verifiable data and transparent presentation. Relying on recent, actual transactions or listings that can be checked gives a realistic view of market value, while clearly showing how you arrived at the price allows others to follow and reproduce your reasoning. Avoid cherry-picking data because selectively choosing the strongest comps creates bias and can undermine credibility with buyers and regulators. Limiting comparisons to a single street can miss broader market trends and variations in property features, making the estimate less representative. Similarly, not referencing any comps removes a critical, objective check on the proposed price. So the best approach is to use current, verifiable comps, present pricing support transparently, and avoid cherry-picking data.