In a depressed market, Arizona comparable sales from 6-12 months ago may need a:
Why Downward time adjustment to account for value decline since the sale date Is Correct
Answer A: Downward time adjustment to account for value decline since the sale date
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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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
- In Arizona, the 'sales comparison approach' to value requires the appraiser to make adjustments for differences between the subject and comparables. The rule is: if the comparable is INFERIOR, the adjustment is:Property Valuation
- In Arizona's competitive real estate market, when multiple comparable sales exist, an appraiser should give the greatest weight to:Property Valuation
- In the sales comparison approach, an appraiser makes 'adjustments' to comparable sales. If a comparable sale has a pool and the subject property does NOT, the appraiser would:Property Valuation
- Under Arizona law, an agreement between a buyer and seller to reduce the stated purchase price on a sales contract while a separate undisclosed payment is made to the seller is:Contracts
- 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
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.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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