Property Valuation
In the sales comparison approach, the subject property is compared to which of the following?
AProperties currently listed for sale
BRecently sold properties with similar characteristics✓ Correct
CProperties in other states with similar climates
DProperties that were listed but did not sell
Explanation
In the sales comparison approach, the subject property is compared to recently sold (closed) properties with similar characteristics in the same or similar market area.
Related Alabama Property Valuation Questions
- Market value assumes a transaction between:
- The principle of balance in real estate states that maximum value is achieved when:
- The assessed value of a property for tax purposes is often:
- An appraiser notes a comparable property sold for $300,000. The comparable has a pool, but the subject does not. The pool is estimated to contribute $15,000 in value. The appraiser should:
- Functional obsolescence due to a feature that costs more to cure than the value it adds to the property is called:
- An operating expense for an investment property that is NOT included when calculating NOI is:
- Replacement cost in the cost approach uses the cost to build a structure:
- A property is listed with an asking price of $375,000. The appraiser's market value conclusion is $350,000. The lender will base the loan on:
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