CHAPTER 19/20 REE4103 QUESTIONS
WITH CORRECT ANSWERS 2026
Qualitative analysis is based on - correct answer-"Inferior" or "superior" ratings
A market conditions adjustment is applied in some situations because - correct answer-
The market has changed since the comparable property sold
Adjustments for financing terms compensate for - correct answer-
A comparable that sold with financing terms that were different than the terms defined in the appraisa
l report
Adjustments for the property rights conveyed, financing, conditions of sale, and the date of sale are oft
en made to the of the comparable property. - correct answer-Actual sale price
The preferred sequence of adjustment is - correct answer-
Property rights, financing, conditions of sale, expenditures after purchase, market conditions, and physi
cal attributes
You are analyzing a sale in which the mathematical calculation of cash equivalency calls for a $10,000 d
ownward adjustment. However, by use of several paired data sets, you find that the market only recog
nizes a $4,000 downward adjustment. What is the adjustme96nt for financing? - correct answer-4000
The appropriate time adjustment is concluded to be an increase of 7% per year compounded. The time
adjustment for a comparable sale that sold for $40,000, 2 years ago is: - correct answer-5796
When an appraiser researches the market directly with participants and the data has not been previou
sly collected, it is called - correct answer-Primary data
A conditions of sale adjustment reflects - correct answer-
The differences between the motivations of the seller and buyer on the date of sale of a comparable a
nd the typical motivation of buyers and sellers as described in the definition of value
, Comparative analysis is - correct answer-
A general term used to describe the process by which qualitative or quantitative techniques are used t
o derive a value opinion in the sales comparison approach
Comparable sale sold for $150,000 with down payment of $30,000
· Seller financed mortgage for a 30-year term @ 7% interest compounded monthly.
· Homes in area are typically held for 30 years
· Market derived interest rate is 9% compounded monthly.
(Implicit in this method is the assumption that the difference between the market interest rate and the
contract rate will remain constant for the entire 30 years)
What is the adjusted sale price after taking into consideration financing terms? - correct answer-
129,222.04
Valuation assignment for the subject property is for both the building and land.
· A Comparable Office BldgDowned and sold separately from its site (land), which is subject to a 99-
year ground lease.
· The comparable 80,000 sf bldg sold (separately from the land) for $4,000,000, or $50/sf.
· Assume the annual ground rent is $250,000, which is consistent with the market
· Market Land Capitalization rate is 11%.
If no other adjustments were made except for the value of the land, what would be the final adjusted
sales price of this comparable? - correct answer-6,272,727.27
A comparable sale included the seller taking back a purchase-
money mortgage at 3% under the market rate for 10 years. The appraisal was based on the cash-
equivalent market value. The adjustment for this factor would be called a - correct answer-
financing terms adjustment
In a market value appraisal assignment, the appraiser found prices were increasing at about 3% per ye
ar compounded annually. The appraiser found several comparable sales but they were not very recent
transactions. She decided to make an adjustment to compensate for price increases in this market. The
se adjustments are called - correct answer-Market conditions adjustments
WITH CORRECT ANSWERS 2026
Qualitative analysis is based on - correct answer-"Inferior" or "superior" ratings
A market conditions adjustment is applied in some situations because - correct answer-
The market has changed since the comparable property sold
Adjustments for financing terms compensate for - correct answer-
A comparable that sold with financing terms that were different than the terms defined in the appraisa
l report
Adjustments for the property rights conveyed, financing, conditions of sale, and the date of sale are oft
en made to the of the comparable property. - correct answer-Actual sale price
The preferred sequence of adjustment is - correct answer-
Property rights, financing, conditions of sale, expenditures after purchase, market conditions, and physi
cal attributes
You are analyzing a sale in which the mathematical calculation of cash equivalency calls for a $10,000 d
ownward adjustment. However, by use of several paired data sets, you find that the market only recog
nizes a $4,000 downward adjustment. What is the adjustme96nt for financing? - correct answer-4000
The appropriate time adjustment is concluded to be an increase of 7% per year compounded. The time
adjustment for a comparable sale that sold for $40,000, 2 years ago is: - correct answer-5796
When an appraiser researches the market directly with participants and the data has not been previou
sly collected, it is called - correct answer-Primary data
A conditions of sale adjustment reflects - correct answer-
The differences between the motivations of the seller and buyer on the date of sale of a comparable a
nd the typical motivation of buyers and sellers as described in the definition of value
, Comparative analysis is - correct answer-
A general term used to describe the process by which qualitative or quantitative techniques are used t
o derive a value opinion in the sales comparison approach
Comparable sale sold for $150,000 with down payment of $30,000
· Seller financed mortgage for a 30-year term @ 7% interest compounded monthly.
· Homes in area are typically held for 30 years
· Market derived interest rate is 9% compounded monthly.
(Implicit in this method is the assumption that the difference between the market interest rate and the
contract rate will remain constant for the entire 30 years)
What is the adjusted sale price after taking into consideration financing terms? - correct answer-
129,222.04
Valuation assignment for the subject property is for both the building and land.
· A Comparable Office BldgDowned and sold separately from its site (land), which is subject to a 99-
year ground lease.
· The comparable 80,000 sf bldg sold (separately from the land) for $4,000,000, or $50/sf.
· Assume the annual ground rent is $250,000, which is consistent with the market
· Market Land Capitalization rate is 11%.
If no other adjustments were made except for the value of the land, what would be the final adjusted
sales price of this comparable? - correct answer-6,272,727.27
A comparable sale included the seller taking back a purchase-
money mortgage at 3% under the market rate for 10 years. The appraisal was based on the cash-
equivalent market value. The adjustment for this factor would be called a - correct answer-
financing terms adjustment
In a market value appraisal assignment, the appraiser found prices were increasing at about 3% per ye
ar compounded annually. The appraiser found several comparable sales but they were not very recent
transactions. She decided to make an adjustment to compensate for price increases in this market. The
se adjustments are called - correct answer-Market conditions adjustments
