Property Valuation
In Arizona, when appraising a property in a 'declining market,' the appraiser must:
AUse only sales that occurred in the most active period of the market
BGive special attention to the trend of values, typically giving more weight to very recent sales and making adjustments to reflect the declining market conditions✓ Correct
CValue the property at the owner's original purchase price
DUse only pending sales rather than closed sales as comparables
Explanation
In a declining market, appraisers must adjust for market conditions (time adjustments). More recent sales receive greater weight, and adjustments are applied to older comparables to reflect the downward trend.
Related Arizona Property Valuation Questions
- The principle of substitution states that:
- In Arizona, when comparable sales are limited, an appraiser may use 'expanded geographic area' searches. This means the appraiser:
- A 'reconciliation' in a final appraisal report involves the appraiser:
- The principle of anticipation in real estate appraisal holds that:
- In the income approach to value, what does capitalization rate (cap rate) measure?
- The 'principle of balance' in real estate appraisal holds that:
- When making adjustments in the sales comparison approach, the appraiser adjusts:
- Scarcity as a principle of value means that:
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