Property Valuation
A Vermont appraiser who finds no truly similar recent sales must widen their search area. What is the key adjustment consideration when using a comparable from a different Vermont market area (e.g., using a Burlington suburb comp for a rural Northeast Kingdom property)?
ANo adjustment is needed if the properties are similar in size
BA location adjustment reflecting market differences between the two areas, which may be significant✓ Correct
COnly a time adjustment for the date difference
DVermont prohibits using out-of-area comparables
Explanation
When using comparables from different Vermont market areas, the appraiser must make a location adjustment that accounts for the value differences between the markets. Vermont's real estate market is highly geographically segmented — Burlington suburbs, ski resort areas, the Northeast Kingdom, and rural areas have very different price levels.
Related Vermont Property Valuation Questions
- Functional obsolescence in a Vermont property refers to:
- Gross rent multiplier (GRM) is calculated as:
- A Vermont property with contamination from a prior use (stigmatized property) may suffer:
- Vermont's Killington Peak area properties may have seasonal fluctuations in value — the appraisal principle this reflects is:
- Vermont's 'contributory value' of an improvement measures:
- The principle of conformity states that property values are maximized when:
- The principle of substitution in Vermont real estate valuation states that:
- When using the cost approach, reproduction cost is the cost to build:
Practice More Vermont Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Vermont Quiz →