Property Valuation
A Georgia appraisal shows that a comparable property sold for $315,000 with a two-car garage. The subject property has a one-car garage. The appraiser estimates that the difference in garage value is $8,000. The adjustment to the comparable is:
A+$8,000 to the comparable
B−$8,000 from the comparable✓ Correct
C+$8,000 to the subject
DNo adjustment is needed
Explanation
Since the comparable is superior (has a feature the subject lacks), the comparable's price is adjusted DOWN by $8,000. Adjusted comparable value = $315,000 − $8,000 = $307,000, which better reflects what the comparable would have sold for if it had a one-car garage.
People Also Study
Related Georgia Questions
- In the sales comparison approach to value, the appraiser makes adjustments to the comparable sales. If a comparable lacks a feature that the subject property has, the appraiser should:Property Valuation
- In an appraisal, a comparable sale that is superior to the subject property requires the appraiser to:Property Valuation
- In a comparative market analysis (CMA), when a comparable property has a feature the subject property lacks (e.g., a pool), the appraiser/agent should:Property Valuation
- The gross rent multiplier (GRM) is calculated by dividing the:Property Valuation
- An appraisal that determines 'market value' estimates the price that:Property Valuation
- A buyer's agent who discovers that a comparable sale used to price the subject property was not truly comparable must:Agency
- The income capitalization approach to value assumes that value is:Property Valuation
- Paired sales analysis is used in appraisal to:Property Valuation
Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Study This Topic
Practice More Georgia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Georgia Quiz →