Property Valuation
In Arizona, when comparable sales are limited, an appraiser may use 'expanded geographic area' searches. This means the appraiser:
AUses any sale from anywhere in the state
BUses sales from a broader but still reasonably comparable market area when the immediate area lacks sufficient data✓ Correct
CIs not permitted to use sales outside the subject's neighborhood
DUses listing prices as substitutes for sales
Explanation
When the immediate market area lacks sufficient comparable sales data, appraisers can expand the search area to include sales from a broader but still comparable market (similar community characteristics, price range, property type) and explain the expanded search.
Related Arizona Property Valuation Questions
- Interim use in appraisal refers to:
- 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:
- A capitalization rate is derived in appraisal by:
- Which of the following would be considered 'external obsolescence' for an Arizona property?
- In Arizona, a Comparative Market Analysis (CMA) prepared by a real estate agent is:
- An Arizona appraiser who knowingly provides a fraudulent appraisal may face:
- A property with 'functional obsolescence' due to having only 1 bathroom in a 5-bedroom home represents:
- The 'principle of balance' in real estate appraisal holds that:
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