Property Valuation
An Oregon appraiser is using the sales comparison approach and needs to adjust for a comparable that has a garage while the subject property does not. What type of adjustment should the appraiser make to the comparable?
AA positive adjustment to the comparable
BA negative adjustment to the comparable✓ Correct
CNo adjustment — garages are not an appraisable feature
DAn adjustment only to the subject property
Explanation
In the sales comparison approach, adjustments are always made to the comparable, not the subject. When the comparable has a superior feature (a garage) that the subject lacks, the appraiser makes a negative adjustment to the comparable to bring its value down to where it would have been without that feature, making the comparison fair.
Related Oregon Property Valuation Questions
- The income capitalization approach to value is most useful for appraising:
- In Oregon, a 'certified residential appraiser' differs from a 'certified general appraiser' in that:
- A property produces a net operating income (NOI) of $60,000 per year. If the capitalization rate is 6%, the property's estimated value using the income approach is:
- What is 'regression' and 'progression' as principles of value in Oregon real estate?
- When comparing a property to a comparable sale that occurred 1 year ago in an appreciating market, an appraiser would make a:
- Which of the following Oregon property types would MOST likely be appraised primarily using the cost approach?
- What is the effective gross income (EGI) multiplier (EGIM) approach to value?
- In Oregon, an appraiser notes that a property has 'functional utility' but an 'inefficient floor plan.' This would likely result in:
Practice More Oregon Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oregon Quiz →