Property Valuation
A Vermont appraiser determines that the comparable sale at $350,000 had a 2-car garage while the subject property has no garage. The appraiser adjusts the comparable by:
AAdding $10,000 to the subject property's value estimate
BSubtracting $10,000 from the comparable's price✓ Correct
CAdding $10,000 to the comparable's price
DMaking no adjustment since garages are standard
Explanation
In the sales comparison approach, if a comparable is superior to the subject property (has a feature the subject lacks), the appraiser subtracts the value of that feature from the comparable's price to make it equivalent to the subject.
People Also Study
Related Vermont Questions
- When an appraiser makes an upward adjustment for a comparable sale that lacks a garage that the subject property has, this reflects:Property Valuation
- A Vermont appraiser notes that a recently sold comparable has a larger lot than the subject property. To adjust for this difference, the appraiser would make a:Property Valuation
- When a Vermont appraiser uses the 'paired sales analysis' to measure the value impact of a specific feature, they:Property Valuation
- A Vermont appraiser who determines that a comparable sale was a 'distress sale' (foreclosure or estate sale) should:Property Valuation
- A Vermont house has 2,200 square feet of living space. The appraiser's comparable analysis suggests a value of $175 per square foot. What is the estimated value?Real Estate Math
- A Vermont investment property has a gross monthly rent of $2,800. The gross rent multiplier (GRM) for comparable properties is 145. What is the estimated market value?Real Estate Math
- A Vermont seller nets $315,000 after paying a 5% commission on the sale. What was the sale price?Real Estate Math
- A Vermont home's original purchase price was $220,000. After 5 years, it sells for $285,000. What is the percentage increase in 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.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Study This Topic
Practice More Vermont Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Vermont Quiz →