An Arizona appraiser who finds that the subject property has superior lot size compared to a comparable sale will make a(n):
Why Upward adjustment to the comparable's price Is Correct
Answer A: Upward adjustment to the comparable's price
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 Arizona Questions
- An appraiser makes a positive adjustment of $5,000 to a comparable sale in the sales comparison approach. This means:Property Valuation
- An Arizona appraiser finds a comparable sale has one extra bathroom compared to the subject property. The appraiser would:Property Valuation
- An Arizona residential appraiser uses the sales comparison approach and finds the subject property has a pool that no comparable sale has. The appraiser should:Property Valuation
- When an appraiser adjusts a comparable sale upward by $5,000 for a feature the subject has but the comparable lacks, the adjustment means:Property Valuation
- An Arizona homeowner wants to net $280,000 after paying a 6% commission. What is the minimum sale price needed?Real Estate Math
- An Arizona agent who negotiates a sale of their principal's property at a price below market to enable the agent or a related party to profit is committing:Agency
Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Study This Topic
Practice More Arizona Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →