Property Valuation
In the sales comparison approach, an appraiser makes adjustments to comparable sales to:
AIncrease the subject property's value above market
BAccount for differences between the comparable and the subject property✓ Correct
CSatisfy the lender's minimum value requirement
DReduce the assessed value for tax purposes
Explanation
In the sales comparison approach, appraisers adjust comparable sales prices to reflect how the comparables differ from the subject property (e.g., extra bathroom, larger lot, newer condition), arriving at an indicated value for the subject.
Related Michigan Property Valuation Questions
- A Michigan appraiser determines that the subject property's highest and best use as improved differs from its highest and best use as vacant. This typically means:
- The cost approach to value is most reliable when:
- In Michigan, the cost approach to value estimates:
- In Michigan appraisal, 'effective age' of a building refers to:
- Functional obsolescence in an appraisal refers to:
- When a Michigan property is sold, the taxable value is:
- In Michigan, a certified residential appraiser is limited to appraising:
- In Michigan, the principle of conformity states that:
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →