Property Valuation
In Tennessee, when adjusting for a swimming pool in the sales comparison approach, the appraiser should use adjustments based on:
AThe cost to build the pool
BThe market's reaction to pools (paired sales analysis), not the cost✓ Correct
CA flat $25,000 adjustment for all pools
DNo adjustment since pools are personal property
Explanation
Adjustments in the sales comparison approach should reflect market value contributions, not cost. Paired sales analysis — comparing sales of otherwise similar homes with and without pools — establishes the market-based adjustment.
People Also Study
Related Tennessee Questions
- In the sales comparison approach, an appraiser makes a negative adjustment to a comparable sale when:Property Valuation
- Paired sales analysis is a method used in the sales comparison approach to:Property Valuation
- When comparing two comparable sales in a Tennessee appraisal, which adjustment would increase the indicated value of the subject property?Property Valuation
- In Tennessee, an appraiser estimates a property's value is $285,000 via the sales comparison approach and $292,000 via the cost approach. The final reconciled value will be:Property Valuation
- A real estate agent who shows a buyer homes only in one part of a city based on the buyer's race or national origin (without the buyer requesting this) is engaged in:Fair Housing
- A Tennessee property tax bill is $4,200. The assessment ratio is 25% and the market value is $560,000. What is the tax rate per $100 of assessed value?Real Estate Math
- A Tennessee property is assessed at 25% of market value. If the market value is $320,000 and the tax rate is $4.50 per $100 of assessed value, what is the annual property tax?Real Estate Math
- A Tennessee investor is looking at a 6-unit apartment building. Each unit rents at $725/month. Using a GRM of 110, what is the estimated market value?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 Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →