An appraiser is analyzing a comparable sale that occurred 8 months ago in Buffalo. The sale price was $195,000. Market analysis indicates that property values in this area have increased at a rate of 0.75% per month. What is the time-adjusted value of this comparable for current market conditions?
Correct Answer
C) $206,700
Total time-based appreciation is 8 months × 0.75% = 6.0%. Applying this to the comparable: $195,000 × 1.06 = $206,700, the time-adjusted indicated value.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Many states have laws to limit how much property taxes can increase each year, regardless of market value fluctuations.
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
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- → FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act) requires:
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