In Arizona's competitive real estate market, when multiple comparable sales exist, an appraiser should give the greatest weight to:
Why The most recently sold, most geographically proximate, and most physically similar comparables to the subject property Is Correct
Answer B: The most recently sold, most geographically proximate, and most physically similar comparables to the subject property
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
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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.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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