Property Valuation
An appraiser uses a 'comparable sale' to adjust for a feature the subject property has but the comparable does not. The appraiser would:
AAdd the value of that feature to the comparable✓ Correct
BSubtract the value of that feature from the subject
CIgnore features not present in comparables
DMake no adjustment
Explanation
When the subject property has a feature the comparable lacks, the appraiser adds the feature's value to the comparable's sale price. The rule: adjust the comp to make it equal to the subject.
Related New Mexico Property Valuation Questions
- An appraiser performing a 'bracketing' technique in the sales comparison approach selects comparables that:
- In New Mexico, the 'principle of conformity' holds that:
- Functional obsolescence in appraisal refers to:
- Market value in New Mexico appraisal is defined as:
- The capitalization rate (cap rate) used in the income approach reflects:
- In New Mexico, the 'band of investment' technique is used to derive a capitalization rate by:
- An appraiser using the income approach calculates a capitalization rate by dividing:
- A New Mexico appraiser uses the 'age-life method' to estimate depreciation. If a building has an effective age of 15 years and a total economic life of 50 years, the depreciation percentage is:
Practice More New Mexico Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Mexico Quiz →