Property Valuation
In a South Dakota residential appraisal, if a comparable property sold for $280,000 and the comparable has a finished basement but the subject does not, and a finished basement is worth $15,000, what adjustment is made?
AAdd $15,000 to the comparable's price
BSubtract $15,000 from the comparable's price✓ Correct
CNo adjustment is necessary
DAverage the difference across all comparables
Explanation
The comparable is superior (has a finished basement the subject lacks), so subtract from the comparable: $280,000 - $15,000 = $265,000. Remember: comparable better = subtract; comparable worse = add.
Related South Dakota Property Valuation Questions
- A South Dakota property's market value is estimated at $250,000 using the sales comparison approach and $280,000 using the cost approach. The appraiser reconciles the value at $255,000. This process is called:
- The principle of substitution in South Dakota real estate states that:
- External (economic) obsolescence in a South Dakota property could be caused by:
- The term 'going-concern value' for a South Dakota business property includes:
- When a South Dakota property's improvements represent 80% of the total value, the land-to-improvement ratio is:
- A South Dakota appraiser notes that comparable sales occurred 8 months ago. The appraiser should:
- South Dakota properties near the Badlands National Park or Black Hills may command premium values due to:
- An appraiser using the income approach determines a South Dakota property's value at $400,000 with a cap rate of 7.5%. What is the NOI?
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 →