Property Valuation
A Maine appraiser adjusts a comparable sale upward by $5,000 for a feature the subject property has that the comparable lacks. This is a:
ANegative adjustment to the comparable
BPositive adjustment to the comparable✓ Correct
CAdjustment to the subject only
DReconciliation adjustment
Explanation
When the subject has a feature the comparable lacks, the appraiser adds value to the comparable (positive adjustment). This adjustment reflects what the market pays for that feature.
People Also Study
Related Maine Questions
- When a Maine appraiser adjusts a comparable sale that has a garage when the subject property does not, the appraiser should:Property Valuation
- In Maine, when the subject property in an appraisal is superior to a comparable sale in one feature, the adjustment is:Property Valuation
- A Maine appraiser uses three comparable sales to estimate value. The comparables show adjusted values of $285,000, $292,000, and $288,000. What is the simple average value indication?Property Valuation
- An appraiser in Maine is determining the assessed value of a property. The municipality uses an assessment ratio of 80%. If the market value is $350,000, what is the assessed value?Property Valuation
- A Maine buyer wants to offer $340,000 for a $360,000 listed property. Their agent advises that comparable properties are selling for 97% of list price on average. Based on the comps, the fair market value is approximately:Real Estate Math
- In Maine, a person who negotiates the sale of real estate without a license is subject to:Maine License Law
- A Maine agent earned a 6% commission on a sale. If their broker pays them 60% of the commission on a $385,000 sale, how much does the agent earn?Real Estate Math
- A Maine agent earns a 3% commission on the buyer's side of a $480,000 sale. The agent's broker pays the agent 55% of that commission. The agent earns:Real Estate Math
Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
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.
Study This Topic
Practice More Maine Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maine Quiz →