Property Valuation
An appraiser uses the 'paired sales analysis' technique primarily to:
AA. Determine the cost to rebuild a structure
BB. Isolate the value contribution of a single property feature by comparing otherwise similar sales✓ Correct
CC. Calculate the gross rent multiplier
DD. Determine market capitalization rates
Explanation
Paired sales analysis involves comparing two nearly identical sales that differ in only one feature (e.g., one has a garage, one does not) to isolate that feature's market value contribution. This is a key technique used in the sales comparison approach.
Related Colorado Property Valuation Questions
- An 'appraisal review' is performed by:
- Economic obsolescence (external obsolescence) in appraisal refers to loss in value caused by:
- The principle of substitution in real estate appraisal states that:
- A comparable sold for $400,000 and has a 2-car garage worth $15,000 that the subject lacks. The appraiser should adjust the comparable by:
- An appraiser in Colorado uses 3 comparable sales to value a property. The adjusted values are $385,000, $392,000, and $395,000. What is the most likely final value indication from reconciliation?
- The economic principle of 'conformity' in real estate holds that:
- A Colorado appraiser uses three comparable sales to value a home. Comp 1 requires a $5,000 upward adjustment for a bedroom. Comp 2 requires a $3,000 downward adjustment for a garage. Comp 3 requires no adjustments and sold for $385,000. Which comp is the most reliable indicator of value?
- In Colorado, a 'before and after' valuation method is used in which appraisal context?
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