Property Valuation
When adjusting a comparable sale in the sales comparison approach, an appraiser ADDS value to the comparable when the comparable is:
ASuperior to the subject property in that feature
BInferior to the subject property in that feature✓ Correct
CEqual to the subject property in that feature
DLocated in a better neighborhood than the subject
Explanation
Appraisers adjust comparables to make them equivalent to the subject. If a comparable is inferior (e.g., has no garage while the subject does), an upward adjustment is made to the comparable. If the comparable is superior, a downward adjustment is made.
Related California Property Valuation Questions
- Plottage (assemblage) refers to:
- Functional obsolescence refers to:
- The sales comparison approach to value is MOST reliable for:
- What is 'assessed value' and how does it relate to market value in California?
- A 2,000 sq ft home in a neighborhood has a value of $400 per square foot based on comparable sales. Using the sales comparison approach, what is the indicated value?
- Highest and best use is defined as the use that is:
- The sales comparison approach to property valuation is MOST appropriate when appraising:
- The economic principle of 'plottage' refers to:
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