Property Valuation
A NC appraiser who values a property using data from a declining market (falling prices) will need to make a 'time adjustment' that is:
APositive (upward) to reflect that older sales were at higher prices
BNegative (downward) to reflect that older sales were at higher prices than current values✓ Correct
CNo adjustment needed in a declining market
DEqual to the annual depreciation rate
Explanation
In a declining market, older comparable sales occurred when prices were higher, so a negative (downward) time adjustment is applied to those comps to reflect current lower market conditions.
Related North Carolina Property Valuation Questions
- A property has a replacement cost new of $400,000, accumulated depreciation of $60,000, and land value of $75,000. What is the cost approach value?
- In the cost approach, 'land value' is estimated separately because:
- An appraiser completing a sales comparison approach for a home in Chapel Hill finds a comparable that sold 8 months ago. The appraiser must make a:
- The sales comparison approach to value relies primarily on:
- When a NC appraiser uses a market extraction method to determine a capitalization rate, they analyze:
- A NC appraiser who determines that a property's highest and best use is for residential development rather than the current agricultural use would reflect this in:
- Regression in real estate value means:
- In NC, a Broker Price Opinion (BPO) is most commonly used for:
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