Property Valuation
In Michigan, a 'lot size adjustment' in the sales comparison approach is made to:
AAdjust for differences in building size
BAccount for the difference in lot size between the subject property and a comparable sale✓ Correct
CAdjust for the time difference between sales
DAccount for differences in neighborhood quality
Explanation
When a comparable sale has a significantly different lot size than the subject property, an appraiser makes a lot size adjustment to isolate the value contribution of the lot difference, ensuring an apples-to-apples comparison.
Related Michigan Property Valuation Questions
- A Michigan property has 3,500 sq ft of living area. If similar homes sell for $85 per sq ft, the indicated value using the cost approach per-square-foot method is:
- In Michigan, which appraisal approach is most appropriate for a special-use property like a church or school?
- The income approach to value is most appropriate for appraising:
- In Michigan, the principle of anticipation states that:
- A Michigan property has an annual gross rent of $24,000. Using a gross rent multiplier (GRM) of 120, the estimated value is:
- In Michigan, 'market value' as used in appraisal is defined as:
- The cost approach to appraisal is most reliable for:
- In Michigan appraisal, 'market rent' differs from 'contract rent' because:
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →