Property Valuation
In appraising a luxury ski chalet near Deer Valley, Utah, the appraiser finds no perfect comparables. The best approach is to:
AUse the cost approach exclusively since comparables are unavailable
BUse the most similar sales available, adjusting for differences, and reconcile with other approaches✓ Correct
CUse the income approach based on rental income projections
DDecline to appraise the property
Explanation
Even when perfect comparables are not available, appraisers should use the most similar sales and make appropriate adjustments for differences. The reconciliation process then weighs the results from multiple approaches to support the final value conclusion.
Related Utah Property Valuation Questions
- Which appraisal approach is most appropriate for a historic LDS chapel being converted to a commercial space in Salt Lake City?
- The income approach yields the highest value indication when:
- In the income approach, Effective Gross Income (EGI) is calculated as:
- Over-improvement of a Utah property (building a much more expensive home than typical for the neighborhood) is an example of:
- In Utah, an automated valuation model (AVM) like Zillow's 'Zestimate' is:
- The principle of anticipation in Utah real estate valuation states that value is based on:
- Absorption rate in Utah real estate market analysis measures:
- In the cost approach, the formula for estimating value is:
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