In an appraisal, 'paired sales analysis' is used to:
Why Isolate the contribution of a specific property feature by comparing otherwise identical sales that differ only in that feature Is Correct
Answer B: Isolate the contribution of a specific property feature by comparing otherwise identical sales that differ only in that feature
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.
Key Property Valuation Terms in This Question
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
- A comparable sale used in the sales comparison approach should be: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 the sales comparison approach to appraisal, adjustments are made to the comparable properties (not the subject) because:Property Valuation
Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Math Concepts
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 →