Market Analysis Flashcards
types of data that describe the local market area or neighborhood of the subject property
General Data
types of data which pertain to the subject and comparable properties and also describe individual property values.
specific data
General data that is to be collected by the appraiser from the market place is known as a
PRIMARY DATA SOURCE
Data which has already been compiled and is deemed to be reliable from its source is identified as a
secondary data source
Most specific data are gathered from a: primary data source MLS secondary data source purchased data source
primary data source
The subject property's assessment record would be considered \_\_\_\_\_\_\_\_ data. general data government data specific data verified data
specific data
What type of data would pertain to trends in the local market area? general data specific data sales data preliminary data
general data
The dimensions of the subject property's site would be considered what type of data? preliminary data general data specific data market data
specific data
Which of these would NOT be an example of general data? streets and roads municipal services site size shopping
site size
Market analysis can be divided into two distinct categories for the appraisal process.
A broad based analysis
and an analysis that introduces market segmentation for the study of the supply and demand or a particular property type or commodity is typically the analysis process that most appraisers routinely perform for their assignments.
In a "buyer's market", what would an appraiser expect to see? properties sell faster than normal there are more buyers than sellers rapid price appreciation prices of homes will fall
prices of homes will fall
In a market that has maintained a state of equilibrium, what would an appraiser expect to see? properties sell faster than normal home prices remain stable rapid price appreciation there are more sellers than buyers
home prices remain stable
What does USPAP state about cost? it is an opinion developed by an appraiser it is a fact, or an estimate of fact it is the same as value it is always less than value
it is a fact, or an estimate of fact
In the purchase of a residential property, how does the principle of anticipation apply to the buyer’s actions?
a buyer typically anticipates that cost is greater than value
a buyer anticipates receiving a positive cash flow from renting the property
buyer typically anticipates the value of the property will increase
a buyer anticipates that cost equals value
buyer typically anticipates the value of the property will increase
When writing an appraisal report, charts and graphs may be used to replace parts of the narrative explanation.
True
False
True
Where should an appraiser document his or her data verification sources? in the MLS in the engagement letter in the letter of transmittal in the workfile
in the workfile
When we refer to “purchasing power”, which question are we asking?
Who would be the typical purchaser for this property?
Does this property generate enough income to motivate an investor to purchase it?
Are prospective purchasers able to purchase this property?
Is there a property in the market that a typical buyer would want to purchase?
Are prospective purchasers able to purchase this property
An announcement of the closing of an industrial plant that is the region's major employer would likely result in: increasing property values a seller's market a buyer's market balance
a buyer’s market
