Property Valuation
In Washington, the 'market extraction method' is used by appraisers to determine:
AThe tax rate for a neighborhood
BThe cap rate or other multipliers based on actual comparable sales in the market✓ Correct
CThe number of buyers active in the market
DThe fair market value of agricultural land
Explanation
Market extraction (or direct extraction) derives cap rates, GRMs, or other multipliers directly from comparable sales in the local market rather than using industry averages. This makes the analysis more relevant to local conditions.
Related Washington Property Valuation Questions
- The principle of progression states that the value of an inferior property is:
- An appraiser is asked to provide a 'retrospective appraisal' of a Washington property. This means the appraisal:
- Washington's senior citizens and disabled persons are eligible for property tax exemptions under the Senior Citizen/Disabled Persons Exemption program if they meet which primary requirement?
- In the cost approach, the term 'reproduction cost' means:
- In Washington, an appraiser who develops a restricted use appraisal report (formerly 'restricted appraisal report') must include a notice that:
- In Washington, USPAP (Uniform Standards of Professional Appraisal Practice) governs appraisers because:
- The sales comparison approach adjusts the sale prices of comparable properties for differences with the subject property. If a comparable sold for $500,000 and has a feature the subject lacks, the appraiser should:
- The principle of substitution states that a buyer will pay no more for a property than the cost of acquiring an equally desirable substitute. This principle:
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