Property Valuation
Comparable sales selected by an appraiser should be:
AIdentical to the subject property in all respects
BRecent arm's-length sales of similar properties in the same market area✓ Correct
COnly properties sold in the past 30 days
DOnly MLS-listed properties with no price reductions
Explanation
Appraisers select comparable sales (comps) that are similar to the subject property, sold recently in an arm's-length transaction (both buyer and seller acting independently without compulsion), and located in the same or competing market area.
Related Arkansas Property Valuation Questions
- The capitalization rate (cap rate) in the income approach is used to:
- The 'as-stabilized' value concept in appraisal refers to:
- The principle of substitution states that a buyer will pay no more for a property than:
- The percentage adjustment for a specific feature in the sales comparison approach is determined by:
- The principle of anticipation holds that value is determined by:
- The income approach to value is based on the principle that a property's value is related to:
- In the cost approach, land is always valued separately using:
- In an appraisal, an adjustment for a comparable sale that is SUPERIOR to the subject property results in:
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →