Property Valuation
Which of the following is an example of a physical characteristic that an appraiser would adjust for in the sales comparison approach?
AThe date of sale
BThe presence of a swimming pool in the comparable but not the subject✓ Correct
CThe financing terms of the comparable sale
DThe location of the comparable relative to the subject
Explanation
Physical characteristics such as the presence or absence of amenities (pool, garage, fireplace) are among the adjustments made in the sales comparison approach. The appraiser adjusts for differences between the subject and comparables.
Related Arkansas Property Valuation Questions
- How does an appraiser handle a comparable sale that sold under non-arm's-length conditions (e.g., between family members)?
- Which appraisal approach estimates value by analyzing recent sales of comparable properties?
- The income approach to value estimates property value based on:
- A property's assessed value for tax purposes is determined by:
- Market value is best defined as:
- The cost approach to value is MOST appropriate for appraising:
- A property's highest and best use is defined as the use that is:
- The principle of CONTRIBUTION states that:
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