Property Valuation
In Florida, a property appraiser's 'market conditions adjustment' in the sales comparison approach accounts for:
AChanges in the local economy between the appraisal date and the effective date
BPrice differences between comparable sales and the subject property due to the time that has elapsed since the comparable sold✓ Correct
CThe different locations of comparable sales relative to the subject
DPhysical differences between the comparable and the subject property
Explanation
Market conditions adjustments (also called 'time adjustments') correct for price changes that occurred between the date a comparable sold and the effective date of the appraisal. If the market has appreciated 5% since a comparable sold 8 months ago, a positive 5% adjustment is applied to the comparable's price to make it reflective of current conditions.
Related Florida Property Valuation Questions
- Under USPAP (Uniform Standards of Professional Appraisal Practice), which of the following would be a violation?
- In Florida real estate, 'market value' is best defined as:
- A Florida appraiser is determining the cost approach value for a 10-year-old building with a total economic life of 50 years. The accrued depreciation percentage is:
- In the cost approach, the formula is: Value = Land Value + Depreciated Cost of Improvements. If a property has a land value of $95,000, replacement cost new of $320,000, and total accrued depreciation of 25%, the indicated value is:
- The highest and best use of a property in Florida is defined as the use that is:
- The 'gross rent multiplier' (GRM) is calculated by:
- When using the sales comparison approach for a Florida home, an appraiser should use comparable sales that are generally:
- When an appraiser applies the 'income approach' to a residential rental property, the final step is to:
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