Property Valuation
In a depressed market, Arizona comparable sales from 6-12 months ago may need a:
ADownward time adjustment to account for value decline since the sale date✓ Correct
BUpward time adjustment to account for the market having recovered
CNo adjustment since time adjustments are not permitted
DUpward adjustment to bring them to current market levels
Explanation
In a declining market, older comparable sales were made when prices were higher. The appraiser makes a downward time adjustment to bring older sales to current market conditions, reflecting the subsequent price decline.
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
- 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
Comparable Sales (Comps)
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.
Study This Topic
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →