Quiz Sales Comparison Approach Ch 1-2 Flashcards
“A type of market area characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural” is the definition of
District
“Details about the property being appraised, comparable sale and rental properties, and relevant local market characteristics” is the definition of
Specific data
“In appraisal, off-site conditions that affect a property’s value” is part of the definition of the principle of
Externalities
“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
Progression
“The geographic region from which a majority of demand comes and in which the majority of competition is located” is the definition of
Market area
“A group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises” is the definition of
Neighborhood
“Data that relates to the four forces that affect real property values—social, economic, governmental, and environmental forces” is the definition of
General data
“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:
Market area
“The perception that value is created by the expectation of benefits to be derived in the future” is the definition of the principle of
Anticipation
“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
Balance
“The result of the cause and effect relationship among the forces that influence real property value” is the definition of the principle of
Change. The principle of change reflects the cause and effects of market forces.
A transaction could be verified with all of the following parties
Buyer, Seller, Listing broker
A web site that is a portal to over 200 federal agencies is
usa.gov
Adjustments made in the sales comparison process always start with:
The comparable
Age of residents and average family size would be categorized as ___________ factors.
Social
American Factfinder can be found on the website of
The Census Bureau
Attorneys may need appraisals for all the following reasons
Divorces, Estate settlements, Eminent domain proceedings
Comparable sales are those that would be comparable or competitive in the minds of ____________________.
A typical purchaser
Contractors may be sources of data for all of the following
Land values, Construction costs, New construction sales
Examination of a title report might reveal all of the following
Easements, Rights of way, Chain of title
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
Reverify the data with a party that does not have a financial interest
How many comparables are typically used by appraisers in the sales comparison approach?
No less than three
In researching the market, an appraiser researches
Closed sales, Prior sales and closed sales, Options to purchase and contracts
In residential properties, anticipated future benefits are amenities. They may include all of the following
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
In the course of performing an appraisal, the appraiser needs to gather
Here: what kind of data?
Both general and specific data
In the sales comparison formula presented, we always start with
The comparable
Lenders might be sources of information in all of the following areas
Commercial transactions, Interest rates, Industrial transactions
Median wages and interest rates would be categorized as ___________ factors.
Economic
MLS information is compiled for the convenience and use of
Sales agents
Of the three appraisal approaches, the sales comparison approach relies most heavily on the economic principle of:
Substitution
One drawback of multiple listing services is that typically their concentration is on ____________ .
Single family residences
Specific data must be gathered concerning
Both the property being appraised and the comparable sale properties
The “normal course of business” in an area is determined by:
Both actions of appraiser’s peers and expectations of intended users
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
Conformity
The COMPETENCY RULE of USPAP says an appraiser must have “the _______________________ to complete the assignment competently.”
Knowledge and experience
The final step in the sales comparison approach procedure is
Reconcile the value indications
The first step in the sales comparison approach procedure is
Research the market
The principle of competition can be between
Purchasers and tenants as well as between sellers and landlords
The principle of supply and demand states that price and demand move in a(an) ________ relationship.
Direct but not proportional. Price and demand move in a direct, but not necessarily proportional relationship.
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
Externalities
The principles of progression and regression are illustrations of what happens when the principle of ______________ is violated.
Balance
The sales comparison approach was previously known as the:
Market Approach, Market Data Approach, Direct Sales Comparison Approach
There are ______ basic elements of comparison in the sales comparison approach.
10
We NEVER adjust the
Subject property
When choosing comparables, the appraiser analyzes:
Location, amenities, market conditions, Sales or financing concessions, Motivations of sellers and buyers, property rights
When collecting comparable sales information, you can collect data concerning all of the following
Here: what kind of sales?
Recent sales, Listing of comparables, Options to purchase, Contracted or pending sales, Offers, refusals
When discussing verification, HUD says that __________ by itself, is not considered a verification source.
MLS records. HUD says that MLS records and property site visits alone are not acceptable verification sources.
When is the sales comparison approach the best way to estimate value?
When there are many similar properties nearby, When the market is very strong, When the property is in a subdivision
Which is typically the largest area?
Market area
Which of the following are common units of comparison when appraising vacant land?
Price per SF, Price per Acre, Price per Front Foot, Price per Buildable Unit, Price per Animal Unit
Which of the following is an element of comparison in the sales comparison approach?
Real property rights, Use, Conditions of sale
Which of the following is the sales comparison formula?
Price of comparable ± adjustments = value of subject
Which of the following would likely be sources of comparable sales?
Multiple Listing Service, Sales agent, Assessor records
Which of these are LIKELY to be considered an atypical motivation to buy or sell?
Divorce, Job transfer, Untimely death of a spouse
Which of these data sources primarily provides information on residential properties?
Move.com
You may exchange __________ information with other appraisers.
Non-confidential
Zoning and public transportation would be categorized as ___________ factors.
Governmental
