Property ValuationIntermediateArizona Exam

In Arizona, a property appraiser finds that the subject property has a 3-car garage while all comparables have 2-car garages. If the market shows a 2-car garage adds $8,000 in value over a 1-car, the appraiser would make:

AA $8,000 upward adjustment to the comparablesCorrect
BA $8,000 downward adjustment to the comparables
CNo adjustment since all comparables have 2-car garages
DAn $8,000 upward adjustment to the subject's value

Why A $8,000 upward adjustment to the comparables Is Correct

Answer A: A $8,000 upward adjustment to the comparables

The subject (3-car) is superior to the comparables (2-car). The appraiser adjusts the comparable's price upward by approximately $8,000 to simulate what they would have sold for if they had the extra garage bay.

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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