Property Valuation
An appraiser in South Dakota adjusts comparable sale prices for differences between comparables and the subject property. A comparable that is inferior to the subject in location would receive a:
ANegative adjustment to the comparable's price
BPositive adjustment to the comparable's price✓ Correct
CNo adjustment (location cannot be adjusted)
DAn adjustment to the subject's estimated value
Explanation
When the comparable is inferior in a characteristic (e.g.
People Also Study
Related South Dakota Questions
- In the sales comparison approach to value, an appraiser makes adjustments to comparable sales for differences between the comparable and the subject property. If a comparable sale has a feature the subject property lacks, the appraiser should:Property Valuation
- A South Dakota appraiser makes a negative adjustment to a comparable sale when the comparable:Property Valuation
- A comparable sale in a South Dakota appraisal had a two-car garage; the subject property has a one-car garage. The appraiser would:Property Valuation
- An appraiser in South Dakota compares a 3/2 subject home to a 4/2 comparable. The extra bedroom in the comparable is worth $10,000 in the market. The appraiser makes:Property Valuation
- A South Dakota salesperson's annual income from commissions is $72,000. They receive 55% of the commission on each transaction. The average sale price is $250,000 with a 5.5% commission. How many transactions did they complete?Real Estate Math
- A South Dakota property sells for $520,000 and the listing broker and buyer's broker each receive 2.5% of the sale price. What is each broker's gross commission?Real Estate Math
- A South Dakota broker earned a commission of $14,400 on a sale. If the commission rate was 6%, what was the sale price?Real Estate Math
- A South Dakota home seller nets $185,000 after paying a 6% commission. What was the sale price?Real Estate Math
Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Study This Topic
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →