Property Valuation
In the Texas Austin/San Antonio market, rapid appreciation creates challenges for appraisers primarily because:
AThere are too many comparable sales to analyze
BRecent contract prices may exceed the values supported by recent closed sales, creating an appraisal gap✓ Correct
CThe MLS does not report accurate data
DAppraisers are prohibited from valuing properties above $500,000
Explanation
In rapidly appreciating markets, contract prices (reflecting current buyer competition) may exceed values supported by recent closed comparable sales (which are historical data). This creates an appraisal gap that can complicate financing.
Related Texas Property Valuation Questions
- In a competitive market, the value of a property 'regresses' when:
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- A Texas property has both a large garage and a pool. An appraiser values these separately. Which term applies to each feature's value contribution?
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