The subject contains 1,900 square feet. The three comparables contain 1,700, 1,780 and 1,840 square feet, and gross living area is supported at $70 per square foot. What is the concern?
Correct Answer
B) Every comparable is smaller, so all size adjustments run one way
The subject exceeds all three comparable areas, so the supplied rate produces upward adjustments of $14,000, $8,400 and $4,200. Assess the availability of suitable bracketing sales and whether the rate applies across these differences. The three-sale count alone proves neither adequacy nor invalidity; other supporting market data may cover the subject’s size.
Why This Is the Correct Answer
The subject exceeds all three comparable areas, so the supplied rate produces upward adjustments of $14,000, $8,400 and $4,200. Assess the availability of suitable bracketing sales and whether the rate applies across these differences. The three-sale count alone proves neither adequacy nor invalidity; other supporting market data may cover the subject’s size.
More Sales Comparison Questions
Which stated cause of supported value loss is external?
Improvement cost new is $450,000. Separately supported improvement depreciation deductions of $45,000, $25,000, $15,000 are expressly nonoverlapping and not already excluded from cost new. Add supported site value of $125,000, already reflecting any site losses. What total indicated value results?
Which two depreciation categories may each be classified as curable or incurable by comparing the cost to remedy a deficiency with the value gained?
Improvement cost new is $800,000. Separately supported improvement depreciation deductions of $120,000, $80,000, $40,000 are expressly nonoverlapping and not already excluded from cost new. No site is included. What depreciated improvement amount results?
The principle of anticipation in real estate valuation states that:
Which highest-and-best-use criterion addresses whether a proposed use is allowed by zoning and applicable legal restrictions?
Three comparables produce adjusted indications of $312,000, $309,000 and $315,000, requiring gross adjustments of 9%, 14% and 22% respectively. Verification also establishes that the first sale is the closest competitive substitute and its adjustments are better supported than the other two. Which indication deserves the most weight on those facts?
When reconciling value indications from the three approaches to value, an appraiser should:
A property sold at a cash-equivalent price of $1,062,500. Its stabilized annual NOI is $85,000. What is the indicated overall rate?
In reconciliation, an appraiser should:
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Cost Approach
13.6% of exam
Income Approach
8.2% of exam
Related Tools
Previous Question
After material transaction differences are normalized, supported qualitative comparisons place the subject between two competitive property indications of $322,000 and $314,000. What does this ranking indicate without further precision evidence?
Next Question
For a Fannie Mae appraisal subject to B4-1.3-09, the reported SCA adjusted comparable prices are $292,000, $298,000 and $305,000. The SCA indicated value is $310,000. Which issue is shown?