Ch. 20 - Valuation and Pricing Properties

Question 1

\_\_\_\_\_\_\_ says a buyer will not pay
more for a home than what he or
she would pay for another home
that is equally desirable and
available.

Answer 1

substitution

Question 2

What terms besides selling
price should be important
considerations that
influence a home sale?

Answer 2

Possession date
Contingent sale Financing
terms

Question 3

appraisers tend to use the _______ method to
estimate accrued depreciation because it is
easier than the breakdown method, but it’s also
less precise. This method is primarily useful
when estimating depreciation from physical
deterioration.

Answer 3

straight-line (economic

age-life) method

Question 4

The sales comparison
approach is thought to be
the most reliable for
appraisals of ___________.

Answer 4

single-family homes