Property Valuation
An appraiser using the sales comparison approach in Alaska adjusts comparable sales for differences. If a comparable is inferior to the subject property in a particular feature, the appraiser will:
ASubtract a dollar adjustment from the comparable
BAdd a positive dollar adjustment to the comparable's sale price✓ Correct
CDiscard the comparable and find another
DMake no adjustment if the difference is less than 10%
Explanation
When a comparable is inferior to the subject, a positive adjustment is added to the comparable's price to make it equivalent to the subject. The rule: 'CBS — Comparable Better, Subtract; Comparable Worse, Add.'
Related Alaska Property Valuation Questions
- In Alaska, the 'principle of anticipation' states that value is based on:
- In Alaska, when an appraiser refers to the 'subject property,' they mean:
- An Alaskan property with an NOI of $75,000 is valued at $1,000,000. The overall capitalization rate is:
- In Alaska, the value added by a swimming pool to a residential property may be less than its construction cost because of the principle of:
- An Alaska property with a 40-year-old structure in excellent condition has an effective age of 15 years. This reflects the principle that:
- An appraiser uses an income multiplier of 9.5 for a property with annual gross income of $48,000. The indicated value is:
- An Alaska appraiser is asked to provide a 'retrospective appraisal' as of the date of a fire three years ago. The appraiser must:
- An Alaska appraiser estimates that a property's highest and best use as vacant would be residential development. The highest and best use as improved is a commercial building. This difference suggests:
Practice More Alaska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →