Property Valuation
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:
ASubtract the value of that feature from the comparable's price
BAdd the value of that feature to the comparable's price✓ Correct
CDiscard the comparable entirely
DMake no adjustment for that feature
Explanation
When a comparable lacks something the subject has (e.g., subject has a pool, comparable does not), the comparable is inferior and its price must be adjusted upward (add) to bring it in line with the subject.
Related Georgia Property Valuation Questions
- The 'principle of conformity' in real estate valuation states that:
- In the cost approach to value, 'reproduction cost' differs from 'replacement cost' in that:
- External obsolescence (also called economic or locational obsolescence) is:
- The 'effective age' of a building in appraisal refers to:
- The 'gross rent multiplier' (GRM) is calculated as:
- Assemblage in real estate refers to the process of:
- In real estate, 'price' and 'value' are:
- In a declining real estate market, an appraiser would likely apply:
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