Property Valuation
When estimating value using the sales comparison approach, an Illinois appraiser looks for comparables that are most similar to the subject in terms of:
AOnly sale price and square footage
BLocation, physical characteristics, and time of sale✓ Correct
CAssessed value and tax history
DListing history and days on market only
Explanation
In the sales comparison approach, appraisers seek comparables that are most similar to the subject property in three primary ways: (1) location (same neighborhood or comparable area), (2) physical characteristics (size, age, condition, features), and (3) time of sale (recent sales, typically within 6-12 months). The more similar the comparable, the fewer adjustments are needed, and the more reliable the value indication.
Related Illinois Property Valuation Questions
- An Illinois appraiser is valuing a special-use property like a church. Which approach to value is typically MOST appropriate?
- Which of the following BEST describes the concept of 'highest and best use' in real estate?
- In a buyer's market, an appraiser would expect to see:
- An appraiser uses the income approach and determines a net operating income of $75,000 with a cap rate of 6%. What is the estimated value?
- Economic (external) obsolescence is best described as a loss in value due to:
- An appraiser adjusting for location differences between the subject property and a comparable uses which type of adjustment?
- A property earns $48,000 in annual net operating income. An appraiser uses a 7.5% capitalization rate. What is the estimated value?
- Which of the following is an example of economic (external) obsolescence in a residential property?
Practice More Illinois Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Illinois Quiz →