Property Valuation
A New York appraiser adjusting a comparable sale for a feature the comparable has but the subject property lacks would make a:
APositive adjustment to the comparable
BNegative adjustment to the comparable✓ Correct
CPositive adjustment to the subject
DNo adjustment; only the subject is adjusted
Explanation
When a comparable has a feature (e.g.
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Key Terms to Know
Comparable Sales (Comps)
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
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.
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