Property Valuation
In a residential appraisal, the appraiser uses a 'grid adjustment' to:
AA. Calculate property taxes
BB. Adjust comparable sale prices to account for differences between the comparable and the subject property✓ Correct
CC. Determine the cost to replace the improvements
DD. Calculate gross rent multipliers
Explanation
In the sales comparison approach, a grid (adjustment grid) is used to make dollar or percentage adjustments to comparable sales. If a comparable lacks a feature the subject has (like a garage), the appraiser adds value; if the comparable has a feature the subject lacks, a downward adjustment is made to arrive at an adjusted sale price.
Related Colorado Property Valuation Questions
- A Colorado appraiser identifies a 'plottage value' for assembling multiple smaller parcels into one larger tract. This is also called:
- External obsolescence (economic obsolescence) in a Colorado property is best described as:
- An 'arm's length transaction' in Colorado real estate appraisal means:
- 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?
- A Colorado appraiser determines that a property has 'superadequacy' (overimprovement). This means:
- The 'market value' of a property in Colorado is best defined as:
- A Colorado appraiser's adjustment grid shows the subject property is superior to most comparables. Most adjustments to the comparables will be:
- In Colorado, a 'capitalization rate' (cap rate) for investment properties varies based on:
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