Which factor could lead to an inaccurate valuation when selecting comparables?

Selecting comparables (comps) is crucial in real estate valuation, as it involves comparing similar properties to determine a fair market price. When it comes to overvaluation due to emotional attachment, this factor can significantly skew the perceived value of a property.

Emotional attachment can lead sellers to inflate their home's worth based on personal memories and experiences rather than objective market data. For example, a homeowner may believe their property is worth much more because of the family memories associated with it or the custom features they have added, regardless of how comparable properties are valued in the current market. This subjective perspective can result in choosing comparables that are not truly reflective of market conditions, leading to an inaccurate valuation.

In contrast, properly assessing market demand, adhering to current market trends, and conducting an in-depth property inspection are all practices that contribute positively to the accuracy of property evaluations. Each of these aspects relies on measurable data and market analysis, which helps ensure that the valuation reflects realistic and current market conditions rather than personal biases.