Property Valuation
When an appraiser selects comparable sales, they should prefer comparables that:
ASold for the highest price
BAre geographically closest to the subject and require minimal adjustments✓ Correct
CAre most recent, regardless of location
DAre similar in age to the subject
Explanation
Appraisers prefer comparables that are most similar to the subject in location, physical characteristics, and date of sale, requiring the fewest and smallest adjustments. Minimal adjustments mean the comparable is a more reliable value indicator.
Related Arkansas Property Valuation Questions
- Which of the following is an example of a physical characteristic that an appraiser would adjust for in the sales comparison approach?
- The principle of REGRESSION states that:
- Which appraisal approach estimates value by analyzing recent sales of comparable properties?
- A comparable property sold for $250,000 but has a garage worth $10,000 that the subject property lacks. The adjusted value of the comparable for comparison to the subject is:
- Depreciation in the cost approach refers to:
- In an appraisal, an adjustment for a comparable sale that is SUPERIOR to the subject property results in:
- When appraising a historic property in Arkansas, the appraiser must consider:
- An appraisal is different from a competitive market analysis (CMA) primarily because:
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