Property Valuation
A Connecticut property appraiser selects comparables for a residential appraisal. A property that sold 15 months ago in the same neighborhood is considered:
AAn ideal comparable due to its proximity
BA potentially acceptable comparable but may require a time adjustment to account for market changes✓ Correct
CUnusable since it sold more than 12 months ago
DAn external comparable only to be used as a check
Explanation
While appraisers prefer comparables from the past 12 months, a sale from 15 months ago in the same neighborhood may be acceptable if recent sales are limited. The appraiser would apply a time adjustment to account for market changes between the sale date and the appraisal date.
Related Connecticut Property Valuation Questions
- Which of the following types of depreciation is typically curable because the cost to fix it is less than the resulting value increase?
- A Connecticut appraiser uses the 'income multiplier' method. The property's potential gross income is $96,000. Similar properties trade at a potential gross income multiplier (PGIM) of 9.5. The indicated value is:
- An appraiser using the cost approach to value a property would:
- Which is true about a 'competitive market analysis' (CMA) prepared by a Connecticut real estate licensee?
- A gross rent multiplier (GRM) is calculated by:
- Which best describes the 'capitalization rate' (cap rate) used in the income approach?
- A Connecticut appraiser finds that a comparable property has an extra half-bathroom compared to the subject property. The appraiser will make a:
- The highest and best use of a property is defined as the use that is:
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