Property Valuation
An appraiser in Warwick, RI, notes that a comparable sale occurred 6 months ago in a market that has appreciated 2% over those 6 months. What type of adjustment is needed?
AA location adjustment
BA time (market conditions) adjustment✓ Correct
CA physical characteristic adjustment
DA functional obsolescence adjustment
Explanation
A time or market conditions adjustment is made when comparable sales occurred in a different market condition (typically applied to older sales). If the market has appreciated, the appraiser adds a positive time adjustment to bring the comp's value to current conditions.
People Also Study
Related Rhode Island Questions
- A comparable property sold 8 months ago. The market has appreciated 1% per month since that sale. The comparable's adjusted price for market conditions (time adjustment) should be:Property Valuation
- In the sales comparison approach, an appraiser makes a positive adjustment to a comparable when:Property Valuation
- An appraiser in Providence uses three comparable sales. The first indicates $400,000, the second $410,000, and the third $390,000. The appraiser gives the most weight to the best comparable. If the third comp is most similar to the subject, what final value might the appraiser conclude?Property Valuation
- A Rhode Island appraiser finds two comparable sales: one is 10% larger than the subject property and sold for $330,000, while another is 5% smaller and sold for $290,000. Assuming a linear relationship, what would the adjusted value of the larger comp be per additional square foot if the subject is 1,500 sq ft?Real Estate Math
- In the sales comparison approach, a Rhode Island appraiser makes a positive adjustment to a comparable sale when:Property Valuation
- An appraiser finds three comparable sales at $305,000, $318,000, and $299,000 after adjustments. If reconciled to the average, what is the indicated value?Real Estate Math
- A Warwick, RI property is assessed at 70% of its market value of $380,000. The tax rate is $15.00 per $1,000 of assessed value. What is the annual tax?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.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Study This Topic
Practice More Rhode Island Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Rhode Island Quiz →