Property Valuation
In the sales comparison approach, a comparable property that sold for more than the subject property due to a superior feature would require:
AA positive adjustment to the comparable
BA negative adjustment to the comparable✓ Correct
CA positive adjustment to the subject
DNo adjustment — the appraisal value would be higher
Explanation
When a comparable has a superior feature compared to the subject, a negative adjustment is made to the comparable's sale price to make it equivalent to the subject. The principle: if the comp is better, subtract; if it's worse, add.
Related Alabama Property Valuation Questions
- An appraiser's certification in the appraisal report states that the opinion of value is:
- An appraiser using the income approach divides the net operating income by the capitalization rate to determine:
- When an appraiser states a value 'as of' a certain date, this is called the:
- The assessed value of a property for tax purposes is often:
- When using the sales comparison approach to value a property in Alabama, the appraiser:
- An appraisal report for a single-family home mortgage most commonly uses which standardized form?
- When an appraiser concludes that the cost approach results in a significantly higher value than the sales comparison approach, this may indicate:
- An appraiser notes a comparable that is superior to the subject in one key feature. The appraiser should:
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →