Property ValuationIntermediateAlaska Exam

When appraising a remote Alaska property accessible only by floatplane, an appraiser should:

AUse only the cost approach because there are no comparables, subject to the usual exceptions
BApply a value premium for the unique access and privacy
CSeek comparables from remote properties and adjust for access limitations and market appealCorrect
DDecline the assignment due to insufficient comparables

Why Seek comparables from remote properties and adjust for access limitations and market appeal Is Correct

Answer C: Seek comparables from remote properties and adjust for access limitations and market appeal

For remote Alaska properties, appraisers should seek the best available comparable sales from similar remote properties and make adjustments for differences including access limitations. Remote access can be a positive (privacy, hunting/fishing) or negative (higher operating costs, limited buyer pool) that requires specific market-supported adjustments.

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.

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