Property Valuation
A Colorado appraiser identifies a subject property in an area with rapidly rising prices. To demonstrate 'market conditions' (time adjustments), the appraiser should:
AUse only comparable sales from the current month
BUse paired sales or resale analysis to quantify the price appreciation per month or percent change✓ Correct
CAdd a flat 5% adjustment to all comparables
DIgnore market conditions since they are speculative
Explanation
To support market conditions adjustments in Colorado, appraisers typically analyze paired sales (same property sold twice) or resale data to quantify the rate of price appreciation over time, then apply appropriate adjustments to older comparable sales.
Related Colorado Property Valuation Questions
- Colorado's 'Board of Assessment Appeals' (BAA) hears property valuation disputes when:
- The economic life of an improvement in a Colorado appraisal refers to:
- USPAP (Uniform Standards of Professional Appraisal Practice) requires all licensed Colorado appraisers to:
- A Colorado appraiser is asked to provide a 'restricted appraisal report.' This type of report:
- A Colorado appraiser notes that a property is in a 'declining market.' This means adjustments to older comparable sales should:
- In a cost approach appraisal, the 'reproduction cost' differs from 'replacement cost' in that:
- A Colorado real estate broker preparing a 'Comparative Market Analysis' (CMA) for a seller should:
- An appraiser uses the cost approach to value a Colorado commercial property. The replacement cost new is $800,000 and the property has 25% depreciation. The land is worth $150,000. What is the indicated value?
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