Property Valuation
When appraising a Bozeman single-family home, an appraiser makes a positive adjustment to a comparable sale because the comparable has a smaller lot than the subject. This is because:
AThe comparable is inferior in this feature so value is added to make it equivalent to the subject✓ Correct
BThe comparable is superior so value is subtracted
CLot size adjustments are always positive
DSmaller lots are always more desirable
Explanation
If the comparable has a smaller lot (an inferiority compared to the subject), a positive adjustment is added to the comparable's sale price to make it equivalent to the subject, which has a larger and more valuable lot.
Related Montana Property Valuation Questions
- The 'principle of conformity' in Montana real estate appraisal suggests that property values are maximized when:
- In Montana, the concept of 'progression' in real estate value means that:
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- In Montana, an appraiser is required to follow the Uniform Standards of Professional Appraisal Practice (USPAP), which are:
- In Montana, when an appraiser uses 'external comparable sales' from outside the immediate market area, they must:
- External obsolescence differs from functional obsolescence because external obsolescence is caused by:
- In Montana, 'functional utility' of a residential property in the sales comparison approach relates to:
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