In the sales comparison approach, a positive adjustment to a comparable sale is made when the comparable is:
Why Inferior to the subject property in that feature Is Correct
Answer B: Inferior to the subject property in that feature
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
- A comparable sale used in the sales comparison approach requires a positive adjustment when:Property Valuation
- In the sales comparison approach, an appraiser adjusts the comparable sale price when: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:Property Valuation
- An appraiser in Alaska uses the sales comparison approach and finds three comparable sales. After adjustments, the adjusted values are $310,000, $315,000, and $312,000. The most likely estimate of value using reconciliation would be:Property Valuation
- An Alaska property sold for $395,000. The buyer made a 20% down payment. Transfer tax in the municipality is $3.50 per $1,000 of sale price. What is the transfer tax?Real Estate Math
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 →