Property Valuation
A Connecticut property is in a neighborhood where similar homes recently sold for $450,000–$480,000. The appraiser's final value opinion of $465,000 falls in the middle of this range. This is an example of:
AAn appraisal bias
BA well-supported, market-based value opinion✓ Correct
CUnder-appraisal
DExternal obsolescence
Explanation
A final value within the range of comparable sales is consistent with market evidence and represents a well-supported, defensible value opinion reflecting the subject property's position relative to comparables.
Related Connecticut Property Valuation Questions
- Which appraisal principle states that the value of a property is affected by the values of neighboring properties?
- A Connecticut property's income statement shows: Potential gross income $96,000; vacancy 5%; operating expenses $32,000. What is the NOI?
- The 'effective age' of a building used in the cost approach refers to:
- An appraiser preparing a Connecticut home valuation uses the cost approach and finds: Land value = $100,000; Reproduction cost of improvements = $350,000; Total depreciation = 20%. What is the total property value?
- Which principle of value states that the value added by any component of a property should be measured by what it contributes to the whole?
- A property has a potential gross income of $60,000, a vacancy rate of 10%, and operating expenses of $20,000. What is the net operating income?
- The 'reconciliation' step in an appraisal involves:
- Which of the following is most likely to DECREASE a property's value through external obsolescence?
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