Quiz Sales Comparison Approach Ch 1-2

Question 1

“A type of market area characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural” is the definition of

Answer 1

District

Question 2

“Details about the property being appraised, comparable sale and rental properties, and relevant local market characteristics” is the definition of

Answer 2

Specific data

Question 3

“In appraisal, off-site conditions that affect a property’s value” is part of the definition of the principle of

Answer 3

Externalities

Question 4

“The concept that a lower-priced property will be worth more in a higher-priced neighborhood than it would in a neighborhood of comparable properties” is the definition of the principle of

Answer 4

Progression

Question 5

“The geographic region from which a majority of demand comes and in which the majority of competition is located” is the definition of

Answer 5

Market area

Question 6

“A group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises” is the definition of

Answer 6

Neighborhood

Question 7

“Data that relates to the four forces that affect real property values—social, economic, governmental, and environmental forces” is the definition of

Answer 7

General data

Question 8

“The geographic region from which a majority of demand comes and in which the majority of competition is located. Depending on the market, a market area may be further subdivided into components such as primary, secondary, and tertiary market areas, or the competitive market area may be distinguished from the general market area” is the definition of:

Answer 8

Market area

Question 9

“The perception that value is created by the expectation of benefits to be derived in the future” is the definition of the principle of

Answer 9

Anticipation

Question 10

“The principle that real property value is created and sustained when contrasting, opposing, or interacting elements are in a state of equilibrium” is the definition of the principle of

Answer 10

Balance

Question 11

“The result of the cause and effect relationship among the forces that influence real property value” is the definition of the principle of

Answer 11

Change. The principle of change reflects the cause and effects of market forces.

Question 12

A transaction could be verified with all of the following parties

Answer 12

Buyer, Seller, Listing broker

Question 13

A web site that is a portal to over 200 federal agencies is

Answer 13

usa.gov

Question 14

Adjustments made in the sales comparison process always start with:

Answer 14

The comparable

Question 15

Age of residents and average family size would be categorized as ___________ factors.

Answer 15

Social

Question 16

American Factfinder can be found on the website of

Answer 16

The Census Bureau

Question 17

Attorneys may need appraisals for all the following reasons

Answer 17

Divorces, Estate settlements, Eminent domain proceedings

Question 18

Comparable sales are those that would be comparable or competitive in the minds of ____________________.

Answer 18

A typical purchaser

Question 19

Contractors may be sources of data for all of the following

Answer 19

Land values, Construction costs, New construction sales

Question 20

Examination of a title report might reveal all of the following

Answer 20

Easements, Rights of way, Chain of title

Question 21

Fannie Mae says when comparable sales data is provided by a party that has a financial interest in either the sale or financing of the subject property, the appraiser must

Answer 21

Reverify the data with a party that does not have a financial interest

Question 22

How many comparables are typically used by appraisers in the sales comparison approach?

Answer 22

No less than three

Question 23

In researching the market, an appraiser researches

Answer 23

Closed sales, Prior sales and closed sales, Options to purchase and contracts

Question 24

In residential properties, anticipated future benefits are amenities. They may include all of the following

Answer 24

The security of having a roof over your head, The prestige of owning a nice home in a good neighborhood, The privacy entailed in owning a home of your own

Question 25

In the course of performing an appraisal, the appraiser needs to gather

Here: what kind of data?

Answer 25

Both general and specific data

Question 26

In the sales comparison formula presented, we always start with

Answer 26

The comparable

Question 27

Lenders might be sources of information in all of the following areas

Answer 27

Commercial transactions, Interest rates, Industrial transactions

Question 28

Median wages and interest rates would be categorized as ___________ factors.

Answer 28

Economic

Question 29

MLS information is compiled for the convenience and use of

Answer 29

Sales agents

Question 30

Of the three appraisal approaches, the sales comparison approach relies most heavily on the economic principle of:

Answer 30

Substitution

Question 31

One drawback of multiple listing services is that typically their concentration is on ____________ .

Answer 31

Single family residences

Question 32

Specific data must be gathered concerning

Answer 32

Both the property being appraised and the comparable sale properties

Question 33

The “normal course of business” in an area is determined by:

Answer 33

Both actions of appraiser’s peers and expectations of intended users

Question 34

The appraisal principle that states “real property value is created and sustained when the characteristics of a property conform to the demands of its market” is the principle of

Answer 34

Conformity

Question 35

The COMPETENCY RULE of USPAP says an appraiser must have “the _______________________ to complete the assignment competently.”

Answer 35

Knowledge and experience

Question 36

The final step in the sales comparison approach procedure is

Answer 36

Reconcile the value indications

Question 37

The first step in the sales comparison approach procedure is

Answer 37

Research the market

Question 38

The principle of competition can be between

Answer 38

Purchasers and tenants as well as between sellers and landlords

Question 39

The principle of supply and demand states that price and demand move in a(an) ________ relationship.

Answer 39

Direct but not proportional. Price and demand move in a direct, but not necessarily proportional relationship.

Question 40

The principle that means that good things or bad things can happen to your property according to what is located around it is the principle of

Answer 40

Externalities

Question 41

The principles of progression and regression are illustrations of what happens when the principle of ______________ is violated.

Answer 41

Balance

Question 42

The sales comparison approach was previously known as the:

Answer 42

Market Approach, Market Data Approach, Direct Sales Comparison Approach

Question 43

There are ______ basic elements of comparison in the sales comparison approach.

Answer 43

10

Question 44

We NEVER adjust the

Answer 44

Subject property

Question 45

When choosing comparables, the appraiser analyzes:

Answer 45

Location, amenities, market conditions, Sales or financing concessions, Motivations of sellers and buyers, property rights

Question 46

When collecting comparable sales information, you can collect data concerning all of the following

Here: what kind of sales?

Answer 46

Recent sales, Listing of comparables, Options to purchase, Contracted or pending sales, Offers, refusals

Question 47

When discussing verification, HUD says that __________ by itself, is not considered a verification source.

Answer 47

MLS records. HUD says that MLS records and property site visits alone are not acceptable verification sources.

Question 48

When is the sales comparison approach the best way to estimate value?

Answer 48

When there are many similar properties nearby, When the market is very strong, When the property is in a subdivision

Question 49

Which is typically the largest area?

Answer 49

Market area

Question 50

Which of the following are common units of comparison when appraising vacant land?

Answer 50

Price per SF, Price per Acre, Price per Front Foot, Price per Buildable Unit, Price per Animal Unit

Question 51

Which of the following is an element of comparison in the sales comparison approach?

Answer 51

Real property rights, Use, Conditions of sale

Question 52

Which of the following is the sales comparison formula?

Answer 52

Price of comparable ± adjustments = value of subject

Question 53

Which of the following would likely be sources of comparable sales?

Answer 53

Multiple Listing Service, Sales agent, Assessor records

Question 54

Which of these are LIKELY to be considered an atypical motivation to buy or sell?

Answer 54

Divorce, Job transfer, Untimely death of a spouse

Question 55

Which of these data sources primarily provides information on residential properties?

Answer 55

Move.com

Question 56

You may exchange __________ information with other appraisers.

Answer 56

Non-confidential

Question 57

Zoning and public transportation would be categorized as ___________ factors.

Answer 57

Governmental