Property Valuation
In the sales comparison approach, the appraiser adjusts for differences between the subject property and comparable sales. If a comparable has a feature the subject lacks, the adjustment to the comparable is:
APositive (added to the comparable's sale price)
BNegative (subtracted from the comparable's sale price)✓ Correct
CNo adjustment is necessary
DThe subject property is adjusted instead
Explanation
When a comparable is superior to the subject (has something the subject lacks), the appraiser subtracts from the comparable's price to bring it down to the subject's level. The rule: if comp is better, subtract; if comp is worse, add.
Related Florida Property Valuation Questions
- A Florida appraiser is asked to determine the 'market value' of a property. 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 income approach, 'effective gross income' (EGI) is calculated as:
- The 'gross rent multiplier' (GRM) is calculated by:
- Functional obsolescence in a Florida property occurs due to:
- Which principle states that when two properties are similar, the value of the more expensive property is affected negatively by its proximity to the less expensive property?
- In Florida real estate, 'market value' is best defined as:
- In Florida, an appraisal performed for a federally related transaction must be conducted by a:
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