Which of the following factors is NOT considered in determining a fair market value using comparables?

• A. Proximity to major roads
• B. Size of the property
• C. Recent sales prices of similar properties
• D. Current mortgages of the properties

Answer: (D)

Determining fair market value using comparables primarily involves analyzing the attributes of the properties being compared to arrive at a reasonable estimation of value. When evaluating factors such as proximity to major roads, size of the property, and recent sales prices of similar properties, appraisers and real estate professionals look for elements that directly influence market perceptions and values of properties.

The current mortgages of the properties do not impact their fair market value as assessed through comparables. Fair market value focuses on what buyers are willing to pay and what sellers are willing to accept in the current market context, based on the properties' characteristics and comparable sales. Mortgages reflect financing arrangements and obligations of the owners but do not reflect the actual market demand or pricing dynamics. Hence, the weight of current mortgages in determining fair market value is negligible and is not included in the comparable assessment process.