APPRAISAL CHP 9

Question 1

Which of the following is NOT necessary to perform the sales comparison approach?
a. comparable sales
b. matched pair analysis data for significant features
c. subject property
d. cost manuals

Answer 1

d. cost manuals

Question 2

Matched pair analysis
a. is a means of determining the contributory value of specific property characteristics or features by comparing pairs of similar properties.
b. is a means of using comparable sales to determine the value of a subject property.
c. is unimportant as appraisers attempt to find comparables which are as similar to the base as possible.
d. is a means of considering the total of all adjustments, whether positive or negative.

Answer 2

a. is a means of determining the contributory value of specific property characteristics or features by comparing pairs of similar properties.

Question 3

What is the priority of adjustments (beginning with the most important)?
a. financing concessions, location, terms of sale, physical features, and date of sale
b. financing concessions, terms of sale, date of sale, location, and physical features
c. physical features, location, date of sale, terms of sale, financing concessions
d. physical features, terms of sale, date of sale, financing concessions, and location

Answer 3

b. financing concessions, terms of sale, date of sale, location, and physical features

Question 4

An amenity is
a. always adjusted for in an appraisal.
b. always a physical, tangible feature.
c. any feature for which there is a ready substitute in the marketplace
d. any tangible or intangible feature that enhances and adds value to real estate.

Answer 4

d. any tangible or intangible feature that enhances and adds value to real estate.

Question 5

A competitive market analysis is _ equal to an appraisal.
a. always
b. more or less
c. never
d. sometimes

Answer 5

c. never

Question 6

Analyzing properties currently listed as part of the appraiser’s analysis assists with
a. determining contributory value of a particular feature.
b. establishing replacement cost.
c. estimating land value.
d. evidencing competition and the upper limit of value.

Answer 6

d. evidencing competition and the upper limit of value.

Question 7

When comparing the sale prices of two recently sold homes, if you cannot tell how much a particular feature affected the price difference,
a. an adjustment must be applied to address the difference.
b. the appraiser is using an unacceptable technique.
C. the need for an adjustment is not supported for those feature differences.
d. the properties in the matched pair should be discarded.

Answer 7

C. the need for an adjustment is not supported for those feature differences.

Question 8

A comparable property that sold for $150,000 required a +$10,000 adjustment and a -$5,000 adjustment. What was the percent of total gross adjustments applied?
a. 3.3%
b. 10%
c. -3.3%
d. 20%

Answer 8

b. 10%

Question 9

If in a comparable sale which sold for $80,000, the seller contributed $4,000 to buy-down the buyer’s interest rate, what would be the percent of adjustment observed from this transaction?
a. 2%
b. 5%
c. 7.5%
d. 10%

Answer 9

b. 5%

Question 10

The date for which the appraiser’s value opinion is valid is known as the
a. appraised date.
b. date of the report.
c. effective date.
d. inspection date.

Answer 10

c. effective date.