If a similar lot sold for $125,000 and the subject lot has $7,000 in improvements, what would be the appraisal value of the subject lot?

To determine the appraisal value of the subject lot, one starts with the sale price of a comparable lot. In this scenario, a similar lot sold for $125,000.

Next, the value of any improvements made to the subject lot must be added to the sale price of the comparable lot. Improvements typically enhance the value of a property, and in this case, the subject lot has $7,000 worth of improvements.

Therefore, the calculation to find the appraisal value of the subject lot would be:

Appraisal Value = Sale Price of Comparable Lot + Value of Improvements
Appraisal Value = $125,000 + $7,000
Appraisal Value = $132,000

This leads to the conclusion that the appraisal value of the subject lot is $132,000, which corresponds to the correct answer.

Understanding this calculation demonstrates the fundamental appraisal principle of adjusting comparable sales for differences between properties, particularly in terms of any improvements that enhance value.