Property Valuation
When using the sales comparison approach in Pennsylvania, if a comparable sale has a feature the subject property lacks, the appraiser will:
AAdd to the comparable's sale price to make it equivalent to the subject
BSubtract from the comparable's sale price to make it equivalent to the subject✓ Correct
CIgnore the difference if it is under $5,000
DAutomatically disqualify the comparable from the analysis
Explanation
In the sales comparison approach, adjustments are made to the comparable sale. If the comparable has a superior feature the subject lacks (e.
People Also Study
Related Pennsylvania Questions
- When making an adjustment in the sales comparison approach, if the comparable sale has a feature the subject lacks, the appraiser:Property Valuation
- When using the sales comparison approach, which factor would an appraiser adjust for if the comparable sold 18 months ago in a rising market?Property Valuation
- An appraiser in Pittsburgh makes a negative adjustment to a comparable sale because the comp has a feature the subject property lacks. This adjustment:Property Valuation
- An appraiser in Montgomery County uses the 'sales comparison approach' for a single-family home. After making all adjustments, the three comps indicate values of $310,000, $315,000, and $322,000. The appraiser reconciles to $315,000. This suggests:Property Valuation
- A Pennsylvania home sells for $425,000. Realty transfer tax is 2% of the sale price, split equally between buyer and seller. How much does the seller pay?Real Estate Math
- In Pennsylvania, when a buyer makes an offer using the standard PAR Agreement of Sale, the offer becomes a binding contract when:Contracts
- A Pennsylvania Agreement of Sale clause stating 'This agreement is contingent upon the property appraising at or above the purchase price' is a(n):Contracts
- A Pennsylvania property sells at a 12% loss from the original purchase price of $250,000. What is the sale price?Real Estate Math
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.
Study This Topic
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →