Module 16

Question 1

4. Using the following percentages in the appropriate sequence of adjustments, what
   is the indicated value of a comparable property that sold for $200,000?
   −5% Property rights conveyed
   +15% Location
   +5% Economic
   −5% Conditions of Sale
   −10% Financing

Answer 1

• A. $194,940 (Property rights x financing x sale conditions x location + economic)
  B. $196,158
  C. $200,000
  D. $215,460

Question 2

Comparable sales are adjusted to the subject as the base, except financing, which is
adjusted to what?

Answer 2

A. Cash equivalency based on the market

Question 3

The sale price of a comparable sale is $120,000. The lot size is 10,000 sq. ft., and
the GLA is 1,600 sq. ft. What is the price per gross living area for this sale?

Answer 3

• D. $75.00 ($120,000 / 1,600 sq. ft. = answer)

Question 4

7. An appraiser has selected two sale properties that are alike except for one feature.
   Comparing the two sales to derive a market adjustment for the feature is called

Answer 4

A. paired data analysis

Question 5

A comparable sale sold in which the seller paid points on the buyer’s $200,000
mortgage. If the appraiser made an adjustment of $12,000 for the points, how
many points did the seller pay to lower the buyer’s mortgage payment?

Answer 5

D. 6 points ($12,000 / $200,000 = 0.06, or 6 points)

Question 6

. An appraiser adjusted a comparable sale to the subject because it sold 12 months
ago. In this instance, the adjustment is for

Answer 6

C. market conditions.

Question 7

private first class expects to make less pay even under normal conditions.

Answer 7

(discussed in Module 13
Elements of comparison are typically applied in the following order:
Real property rights conveyed
Financing terms
Conditions of sale
Expenditures made immediately after purchase - Consider the following example: You find a comparable sale that required an expenditure of $5000 for a new roof immediately after it was sold. The sale price would reflect a house with a bad roof and would need to be adjusted. 
Market conditions
Location
Relevant physical characteristics
Relevant economic characteristics
Use/zoning
Non-realty components of value