Real Estate Math
A Washington home appraiser uses a comparable that sold for $510,000. The comparable has a view worth $15,000 that the subject does not have. The adjusted comparable value is:
A$495,000✓ Correct
B$510,000
C$525,000
D$530,000
Explanation
The comparable has something the subject lacks (view = +$15,000 for the comparable). The comparable is superior.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
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