chapter 3 analysis techniques of the sales comparison approach

Question 1

The process by which a value indication is derived in the Sales Comparison Approach. May employ quantitative or qualitative techniques, either separately or in combination

Answer 1

comparative analysis

Question 2

Based on numbers and results in either dollar or percentage amounts.

Answer 2

quantitative analysis

Question 3

Used for elements that cannot be given a numerical value.

Answer 3

Qualitative

Question 4

There are various techniques we may employ when using quantitative adjustments. They include:

Answer 4

Paired Data Analysis
Graphic Analysis
Trend Analysis
Statistical Analysis
Cost Analysis
Capitalization of Rent Differences

Question 5

Comparative analysis may employ quantitative analysis and qualitative analysis
Separately only
Together only
Separately or together
Only in the appraisal of non-residential properties

Answer 5

separately or together

Question 6

Qualitative analysis is used for elements that
Defy description
Are too far apart
Can’t be ranked
Cannot be given a numerical value

Answer 6

cannot be given a numerical value

Question 7

The process by which a value indication is derived in the Sales Comparison Approach is called
Comparative Analysis
Quantitative Analysis
Qualitative Analysis
Highest and Best Use analysis

Answer 7

comparative analysis

Question 8

A quantitative technique used to identify and measure adjustments to the sale prices or rents of comparable properties; to apply this technique, sales or rental data on nearly identical properties is analyzed to isolate and estimate a single characteristic’s effect on value or rent. Often referred to as paired sales analysis

Answer 8

paired data analysis

Question 9

Comparable 1 sells for $185,000 and has a fireplace. Comparable 2 was built by the same builder, is right across the street and is similar in all aspects except that it has no fireplace. It sells for $180,000.

Answer 9

$5,000

$185,000 - $180,000 = $5,000

Question 10

Analyzing a sale and re-sale of a property is another type of paired data analysis. Here’s an example. A home sells in January for $180,000 and sells again in November for $189,000. When the home resold it had not been improved at all. The only change was the time. What is the indicated adjustment for time or change in market conditions?

Answer 10

1.05

$189,000 ÷ $180,000 = 1.05

Question 11

Quantitative techniques used to identify and measure adjustments to the sale prices of comparable properties; a variant of statistical analysis in which an appraiser interprets graphically displayed data visually or through curve fit analysis. Graphs can also be used to support and exhibit value trends for comparison elements in qualitative analysis

Answer 11

graphic analysis

Question 12

“A quantitative technique used to identify and measure trends in the sale prices of comparable properties; useful when sales data on highly comparable properties is lacking, but a broad database on properties with less similar characteristics is available. Market sensitivity is investigated by testing various factors that influence sale prices

Answer 12

trend anaylsis

Question 13

In the Sales Comparison Approach, a quantitative adjustment technique in which adjustments are based on cost indicators, such as depreciated building cost, cost to cure, or permit fees

Answer 13

cost analysis

Question 14

"A quantitative technique used to identify and measure trends in the sale prices of comparable properties; useful when sales data on highly comparable properties is lacking, but a broad database on properties with less similar characteristics is available. Market sensitivity is investigated by testing various factors that influence sale prices" is the definition of \_\_\_\_\_\_\_\_\_\_\_ analysis.
Ranking
Cost
Graphic
Trend

Answer 14

trend

Question 15

A property sold for $250,000 and then sold later in the same year for $237,000. What was its percentage of decline?

4. 2%
5. 0%
6. 2%
7. 7%

Answer 15

5.2%

237,000 ÷ 250,000 = .948 or 94.8%.

1.00 - .948 = .052 or 5.2%

Question 16

An analysis technique in which nearly identical properties are analyzed to isolate a single characteristic's effect on value or rent is called
Economic base analysis
Paired data analysis
Ranking Analysis
Trend Analysis

Answer 16

paired data analysis

Question 17

The process of accounting for differences (such as between comparable properties and the subject property) that are not quantified; may be combined with quantitative techniques

Answer 17

qualitative analysis

Question 18

Qualitative analysis techniques would include:

Answer 18

relative comparison analysis
ranking analysis
personal interviews

Question 19

A qualitative technique for analyzing comparable sales; used to determine whether the characteristics of a comparable property are inferior, superior, or equal to those of the subject property. Relative comparison analysis is similar to paired data analysis, but quantitative adjustments are not derived”

Answer 19

relative comparison analysis

Question 20

A qualitative technique for analyzing comparable sales; a variant of Relative Comparison Analysis in which comparable sales are ranked in descending or ascending order of desirability and each is analyzed to determine its position relative
to the subject.

Answer 20

ranking analysis

Question 21

Which of the following is NOT a form of qualitative analysis?
Ranking analysis
Graphic Analysis
Relative Comparison Analysis
Interviews

Answer 21

graphic analysis

Question 22

"The process of accounting for differences (such as between comparable properties and the subject property) that are not quantified; may be combined with quantitative analysis" is the definition of \_\_\_\_\_\_\_\_\_\_\_\_ techniques.
Economic
Relative Comparison
Graphic
Qualitative

Answer 22

qualitative

Question 23

The procedure in which we employ just plusses and minuses in sales comparison is called \_\_\_\_\_\_\_\_\_\_\_\_\_\_ analysis.
Gross Rent Multiplier
Graphic
Relative Comparison
Paired Data

Answer 23

relative comparison

Question 24

"A numerical (dollar or percentage) adjustment to the indicated value of a comparable property to account for the effect of a difference between two properties on value” is the definition of
Quantitative adjustments
Qualitative adjustments
Intermediation
Comparative analysis

Answer 24

quantitative adjustments

Question 25

Which of the following is NOT a form of qualitative analysis?
Ranking Analysis
Graphic Analysis
Relative Comparison Analysis
Interviews

Answer 25

graphic analysis

Question 26

The procedure in the Sales Comparison Approach in which we employ just pluses and minuses is called \_\_\_\_\_\_\_\_\_\_\_\_\_\_ analysis.
Ranking
Graphic
Relative comparison
Paired data

Answer 26

relative comparison

Question 27

Which is NOT a form of quantitative analysis?
Paired data analysis
Graphic Analysis
Ranking Analysis
Cost Analysis

Answer 27

ranking analysis

Question 28

Qualitative analysis is used for elements that
Defy description
Are too far apart
Can't be ranked
Cannot be given a numerical value

Answer 28

cannot be given numerical value

Question 29

"In the Sales Comparison Approach, a quantitative adjustment technique in which adjustments are based on cost indicators, such as depreciated building cost, cost to cure, or permit fees” is the definition of
Cost Analysis
Construction Analysis
Cost to Cure Analysis
Cost Matrix

Answer 29

cost analysis

Question 30

An analysis technique in which nearly identical properties are analyzed to isolate a single characteristic's effect on value or rent is called
Economic base analysis
Paired data analysis
Ranking Analysis
Trend Analysis

Answer 30

1.5%

$245,000 ÷ $225,000 = 1.09 or 9%. 9% ÷ 6 = 1.5% per month.

Question 31

Comparative analysis may employ quantitative analysis and qualitative analysis
Separately only
Together only
Separately or together
Only in series

Answer 31

seperately or together

Question 32

"Quantitative techniques used to identify and measure adjustments to the sale prices of comparable properties; a variant of statistical analysis in which an appraiser interprets graphically displayed data visually or through curve fit analysis” is the definition of
Qualitative analysis
Curvilinear Analysis
Graphic Analysis
Quantitative analysis

Answer 32

graphic analysis

Question 33

Comparative analysis may employ
Qualitative analysis only
Quantitative analysis only
Both quantitative and qualitative analysis separately or together
Paired data analysis only

Answer 33

Both quantitative and qualitative analysis separately or together

Question 34

"A quantitative technique used to identify and measure adjustments to the sale prices of comparable properties; useful when sales data on highly comparable properties are lacking, but a broad database on properties with less similar characteristics is available" is the definition of \_\_\_\_\_\_\_\_\_\_\_ analysis.
Ranking
Cost
Graphic
Trend

Answer 34

trend

Question 35

Which of the following is FALSE, concerning quantitative analysis?
It is based on numbers
It cannot be given a numerical value
It may result in a dollar amount
It may result in a percentage amount

Answer 35

it cannot be given a numerical value

Question 36

An analysis technique in which nearly identical properties are analyzed to isolate a single characteristic's effect on value or rent is called
Economic base analysis
Paired data analysis
Ranking Analysis
Trend Analysis

Answer 36

paired data analysis

Question 37

The process by which a value indication is derived in the Sales Comparison Approach is called
Comparative Analysis
Quantitative analysis
Qualitative analysis
Highest and Best Use analysis

Answer 37

comparative analysis

Question 38

"In the Sales Comparison Approach, a quantitative adjustment technique in which adjustments are based on cost indicators, such as depreciated building cost, cost to cure, or permit fees” is the definition of
Cost Analysis
Construction Analysis
Cost to Cure Analysis
Cost Matrix

Answer 38

cost analysis