Property Valuation
When comparing properties, an appraiser notes that a comparable home sold 12 months ago. In a market experiencing 6% annual appreciation, the appraiser should make a:
ADownward adjustment to the comparable's sale price
BUpward time adjustment (market conditions adjustment) to bring the comparable to current value✓ Correct
CNo adjustment because appreciation is already built into the price
DDownward adjustment for neighborhood changes
Explanation
If a market has been appreciating, a comparable sale from 12 months ago needs a positive (upward) time adjustment to reflect current market conditions. A 6% annual appreciation rate means the comparable's price should be adjusted upward by approximately 6% to reflect what it would sell for today.
Related Texas Property Valuation Questions
- A Texas residential appraiser notes that the subject property is the largest home on the block. The principle of REGRESSION suggests this property:
- A Texas appraiser determines a capitalization rate using market extraction. This process involves:
- A Texas appraiser values a large tract of land that will be developed as a residential subdivision. The appropriate method is:
- In the Texas real estate market, a seller's market is characterized by:
- A Texas appraiser completes a desk review of an appraisal report. A desk review involves:
- In Texas, the excess land technique in appraising a property means:
- Accrued depreciation in the cost approach refers to:
- In the income approach, stabilized NOI means:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →