Property Valuation
When an appraiser in Oklahoma uses the sales comparison approach for a single-family residence, adjustments are made for differences between the subject property and comparables. A positive adjustment means:
AThe subject property is superior to the comparable in that feature
BThe comparable is superior to the subject in that feature, so the comparable's sale price must be increased to reflect what it would have sold for if it were equal to the subject✓ Correct
CThe appraiser adds value to the subject arbitrarily
DNo adjustment is needed
Explanation
In the sales comparison approach, if a comparable is superior to the subject in some feature, the comparable's price is adjusted upward (positive adjustment) to reflect what the comparable would have sold for had it lacked that superior feature — making it equivalent to the subject.
Related Oklahoma Property Valuation Questions
- Land value in the cost approach to appraisal is estimated as if the land were:
- When an appraiser uses the cost approach, what is added to the site value to determine the property's total value?
- The principle of conformity in real estate value states that:
- Plottage (assemblage) value in Oklahoma refers to:
- Market value is defined as the most probable price a property will bring under which conditions?
- Regression is an appraisal principle that states:
- The 'highest and best use' of a property is defined as the reasonably probable use that is:
- Functional obsolescence in real estate refers to a loss in value due to:
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