Property Valuation
When using the sales comparison approach, a 'gross living area' adjustment is made because:
ALarger homes always sell for more than smaller homes
BSize differences between the subject and comparable affect value✓ Correct
CAll comparable homes must be identical in size
DAppraisers charge by square footage
Explanation
Appraisers adjust for size (gross living area) differences between the subject property and comparables because size is a primary value determinant. The adjustment reflects what the market pays per square foot for that feature.
Related Arkansas Property Valuation Questions
- Depreciation in appraisal refers to:
- In the income approach to value, Net Operating Income (NOI) is calculated as:
- The principle of progression in real estate valuation states that:
- When appraising a historic property in Arkansas, the appraiser must consider:
- When a comparable sale was a foreclosure or distressed sale, the appraiser should:
- Functional obsolescence in a property is caused by:
- External (economic) obsolescence differs from other forms of depreciation because it is:
- An overimprovement to a property is one where:
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