Property Valuation
An appraiser is comparing two homes, one with a garage and one without. To adjust for the garage, the appraiser would:
AAdd the cost to build a garage to the subject property value
BResearch market data to determine what buyers pay for garages✓ Correct
CUse only comparables that also have garages
DIgnore the difference since it is a minor feature
Explanation
Adjustments in the sales comparison approach must be based on market data showing what buyers actually pay for a feature. The adjustment for a garage should reflect market reaction, not construction cost.
Related Kentucky Property Valuation Questions
- The 'replacement cost' in the cost approach differs from 'reproduction cost' in that replacement cost uses:
- When making adjustments in the sales comparison approach, if a comparable property has a feature the subject property lacks, the appraiser should:
- A Kentucky property owner believes their property was assessed at more than fair cash value. The correct order of appeal is:
- In the cost approach, what is the formula for estimating value?
- An improvement that adds $15,000 in cost but only $8,000 in value to a Kentucky home is an example of:
- An appraisal is an estimate of a property's:
- Functional obsolescence caused by a feature that the market no longer desires, such as small closets in a Louisville home, is an example of:
- In Kentucky, the Property Valuation Administrator (PVA) is responsible for:
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