Property Valuation
An appraiser values a single-family home in Iowa using the sales comparison approach. The subject has a two-car garage; one comparable sold with a one-car garage for $215,000. If the garage difference is worth $5,000, the adjusted comparable value is:
A$210,000
B$215,000
C$220,000✓ Correct
D$225,000
Explanation
The subject has MORE than the comparable (2-car vs. 1-car garage).
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Key Terms to Know
Comparable Sales (Comps)
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
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