What is an essential requirement for MRA to produce accurate values?

An adequate number of sales is a crucial requirement for the Market Reflective Approach (MRA) to produce accurate valuations. This approach relies on having enough data to establish a reliable comparison between properties. A sufficient volume of sales helps to capture a range of market activities, allowing appraisers to identify trends and accurately reflect property values based on actual transactions.

When the number of sales is limited, the data may not provide a comprehensive representation of the market, leading to potential inaccuracies in the valuation process. A robust sample size ensures that anomalies or outliers have less influence on the overall assessment, thereby enhancing the reliability of the estimated values. Additionally, having a broad dataset enables the appraiser to account for various property characteristics and market conditions, further refining the assessment's accuracy.

In contrast, while access to sales data from several locations, numerical data from buildings, and advanced software can all support the valuation process, they do not serve as fundamental requirements for executing MRA effectively. Without an adequate number of sales, no amount of software or data variety can compensate for the lack of sufficient underlying market information, which is essential for meaningful analysis.