Property Valuation
An appraiser makes a 'downward adjustment' to a comparable sale when the comparable property:
AIs inferior to the subject property
BIs superior to the subject property✓ Correct
CSold for less than the list price
DIs located farther from the subject property
Explanation
When a comparable property is superior to the subject property (e.g.
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Related Louisiana Questions
- An appraiser in Louisiana determines a residential comparable sale has 200 more square feet of living area than the subject. If the appraiser uses $50 per square foot for size adjustments, the adjustment to the comparable is:Property Valuation
- In the sales comparison approach, an appraiser makes a negative adjustment to a comparable sale when:Property Valuation
- An appraiser is using the sales comparison approach and finds that the subject property has a superior view compared to all comparable sales. The appraiser should make:Property Valuation
- In a declining Louisiana real estate market, which adjustment would an appraiser typically make to older comparable sales?Property Valuation
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.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
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.
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