Property Valuation
When an appraiser makes a 'location adjustment' to a comparable sale, they are accounting for:
AA. The comparable's condition versus the subject
BB. Differences in the desirability of the location between the comparable's neighborhood and the subject's neighborhood that affect value✓ Correct
CC. Only differences in lot size
DD. Differences in the year built
Explanation
A location adjustment compensates for differences in the location's desirability between the comparable and the subject property. For example, if the subject is on a quiet cul-de-sac and the comparable is on a busy street, the appraiser might add value to the subject (or subtract from the comparable) to account for the location difference.
Related Colorado Property Valuation Questions
- The reliability of the sales comparison approach in Colorado appraisal is most affected by:
- A Colorado appraiser's 'reconciliation' note states that 'greatest weight was given to the sales comparison approach.' This is because:
- In Colorado, a 'before and after' appraisal may be required when:
- A Colorado appraiser is asked to provide a 'restricted appraisal report.' This type of report:
- A 'market value' appraisal assumes the buyer and seller are:
- 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?
- A Colorado appraiser using the 'Gross Rent Multiplier' (GRM) method determines value by:
- The 'principle of substitution' in real estate valuation states that:
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