An Alaska residential lot comparable to the subject sold 18 months ago for $80,000. The market has appreciated 3% per year since then. What is the time-adjusted value of the comparable?
Why $83,600 Is Correct
Answer B: $83,600
Exam Tip: Property Valuation
Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.
People Also Study
Related Alaska Questions
- An appraiser in Alaska determines a comparable property sold in an estate sale at 10% below market value. To use this comparable, the appraiser should make:Property Valuation
- An Alaska appraiser determines that comparable sales need a 'market conditions adjustment' of +2% per year due to price appreciation. For a sale that closed 18 months ago at $400,000, the time-adjusted price is approximately:Property Valuation
- An Alaska buyer purchased a home for $380,000 and sold it 3 years later for $425,000. What was the percentage increase in value?Real Estate Math
- An Alaska property is assessed at 60% of its $500,000 market value. The tax rate is $15 per $1,000 of assessed value. What is the annual property tax?Real Estate Math
- An Alaska appraiser adjusts a comparable sale downward by $10,000 because the comparable has a garage and the subject does not. This adjustment suggests the market values a garage at approximately:Property Valuation
- An Alaska property has a market value of $480,000 and is assessed at 85% of market value. The mill rate is 12 mills. What is the annual tax?Real Estate Math
- An Alaska home appreciates 4% per year for 3 years starting at $275,000. What is the value at the end of year 3?Real Estate Math
- The appraisal approach most commonly used to value single-family residential properties in Alaska is the:Property Valuation
Key Terms to Know
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Study This Topic
Practice More Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →