What is a likely concern when overlooking financing terms in comparables?

When overlooking financing terms in comparables, it’s crucial to recognize that ignoring buyer funding limitations can significantly impact the analysis of a property’s market value and attractiveness. Buyers often have specific funding requirements that can dictate the type of properties they are able to purchase. If financing terms, such as interest rates or loan types, are not considered, it could lead to a fundamental misunderstanding of the market.

Properties that have financing terms aligning with buyer preferences may sell faster or at a higher price than those that do not. If a comparable property has poor financing options or requires non-traditional loans, it might not be a fair comparison to properties that are easily financeable. Thus, overlooking these funding limitations can lead to inaccurate valuations and poor advising of clients regarding their buying or selling strategies.