chapter 3 analysis techniques of the sales comparison approach Flashcards
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
comparative analysis
Based on numbers and results in either dollar or percentage amounts.
quantitative analysis
Used for elements that cannot be given a numerical value.
Qualitative
There are various techniques we may employ when using quantitative adjustments. They include:
Paired Data Analysis Graphic Analysis Trend Analysis Statistical Analysis Cost Analysis Capitalization of Rent Differences
Comparative analysis may employ quantitative analysis and qualitative analysis
Separately only
Together only
Separately or together
Only in the appraisal of non-residential properties
separately or together
Qualitative analysis is used for elements that Defy description Are too far apart Can’t be ranked Cannot be given a numerical value
cannot be given a numerical value
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
comparative analysis
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
paired data analysis
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.
$5,000
$185,000 - $180,000 = $5,000
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?
1.05
$189,000 ÷ $180,000 = 1.05
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
graphic analysis
“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
trend anaylsis
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
cost analysis
"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
trend
A property sold for $250,000 and then sold later in the same year for $237,000. What was its percentage of decline?
- 2%
- 0%
- 2%
- 7%
5.2%
237,000 ÷ 250,000 = .948 or 94.8%.
1.00 - .948 = .052 or 5.2%
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
paired data analysis
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
qualitative analysis
Qualitative analysis techniques would include:
relative comparison analysis
ranking analysis
personal interviews
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”
relative comparison analysis
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.
ranking analysis
Which of the following is NOT a form of qualitative analysis? Ranking analysis Graphic Analysis Relative Comparison Analysis Interviews
graphic analysis
"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
qualitative
The procedure in which we employ just plusses and minuses in sales comparison is called \_\_\_\_\_\_\_\_\_\_\_\_\_\_ analysis. Gross Rent Multiplier Graphic Relative Comparison Paired Data
relative comparison
"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
quantitative adjustments
Which of the following is NOT a form of qualitative analysis? Ranking Analysis Graphic Analysis Relative Comparison Analysis Interviews
graphic analysis
The procedure in the Sales Comparison Approach in which we employ just pluses and minuses is called \_\_\_\_\_\_\_\_\_\_\_\_\_\_ analysis. Ranking Graphic Relative comparison Paired data
relative comparison
Which is NOT a form of quantitative analysis? Paired data analysis Graphic Analysis Ranking Analysis Cost Analysis
ranking analysis
Qualitative analysis is used for elements that Defy description Are too far apart Can't be ranked Cannot be given a numerical value
cannot be given numerical value
"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
cost analysis
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
1.5%
$245,000 ÷ $225,000 = 1.09 or 9%. 9% ÷ 6 = 1.5% per month.
Comparative analysis may employ quantitative analysis and qualitative analysis Separately only Together only Separately or together Only in series
seperately or together
"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
graphic analysis
Comparative analysis may employ Qualitative analysis only Quantitative analysis only Both quantitative and qualitative analysis separately or together Paired data analysis only
Both quantitative and qualitative analysis separately or together
"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
trend
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
it cannot be given a numerical value
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
paired data analysis
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
comparative analysis
"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
cost analysis
