In Arizona, when a buyer pays more than the appraised value for a property, the difference is called:
Why The appraisal gap Is Correct
Answer A: The appraisal gap
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
- A buyer assumes an existing $200,000 mortgage on an Arizona property. The purchase price is $290,000. The buyer pays the difference in cash. What is the buyer's cash requirement at closing (excluding all other closing costs)?Finance
- In an Arizona purchase contract, if the appraisal comes in below the agreed purchase price, the buyer typically may:Contracts
- The appraisal approach most commonly used to estimate the value of single-family residential properties in Arizona is the:Property Valuation
- Property taxes on an Arizona home valued at $325,000 are assessed at 10% of full cash value with a tax rate of $12 per $100 of assessed value. What is the annual tax bill?Real Estate Math
- Market value in Arizona real estate appraisal is most accurately defined as:Property Valuation
- Arizona uses a 'limited cash value' assessment system where residential property is assessed at a percentage of its full cash value. The standard assessment ratio for residential property in Arizona is: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
- The 'discounted cash flow' (DCF) analysis in Arizona commercial real estate appraisal differs from direct capitalization in that:Property Valuation
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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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 →