Property Valuation
An Arizona appraiser finds a comparable sale has one extra bathroom compared to the subject property. The appraiser would:
AAdd the bathroom value to the subject property's estimated value
BSubtract the bathroom value from the comparable's sale price✓ Correct
CAdd the bathroom value to the comparable's sale price
DMake no adjustment since bathrooms rarely affect value
Explanation
When the comparable is superior to the subject (extra bathroom), the appraiser subtracts the adjustment from the comparable's sale price. The rule: comparable is better, adjust down; comparable is worse, adjust up.
Related Arizona Property Valuation Questions
- Depreciation in real estate appraisal refers to:
- An Arizona appraiser calculates that a subject property has $75,000 of accrued depreciation on improvements with a reproduction cost of $300,000. The land value is $80,000. What is the indicated value by the cost approach?
- The 'reconciliation' step in an Arizona appraisal involves:
- External obsolescence affecting an Arizona property's value might be caused by:
- A property generates $60,000 in annual net operating income. If the prevailing cap rate is 6%, what is the estimated value?
- Functional obsolescence in a property is BEST illustrated by:
- An appraiser makes a positive adjustment of $5,000 to a comparable sale in the sales comparison approach. This means:
- Functional obsolescence in an appraisal refers to:
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