Residential Sales Comparison and Income Approaches
2023 Questions and Answers with complete solution
A mortgage with equal payments for each period over the length of the loan is
called a __________ loan.
Standardized
Equal rate
Graduated payment
Fixed rate
Fixed Rate
The first step in the Sales comparison approach procedure is to
research the market
The COMPETENCY RULE of USPAP says an appraiser must have "the
_______________________ to complete the assignment competently."
Knowledge and experience
The Sales Comparison Approach was previously known as the:
Market Data Approach
A transaction could be verified with all of the following parties EXCEPT
Buyer
Another appraiser
Seller
Listing broker
Another appraiser
In residential properties, anticipated future benefits are amenities. They may
include all of the following EXCEPT
The security of having a roof over your head
The prestige of owning a nice home in a good neighborhood
Tax benefits
The privacy entailed in owning a home of your own
Tax benefits
Which of the following is NOT a common unit of comparison when appraising 2-4
unit properties?
Price per SF of GLA
Price per room
Price per SF of GBA
Price per bedroom
Price per SF of GLA
The final step in the Sales Comparison Approach procedure is
Verify the information
Select relevant units of comparison
,Reconcile the value indications
Research the market
Reconcile the value indications
When choosing comparables, the appraiser analyzes
Location, amenities, market conditions
Sales or financing concessions
Motivations of sellers and buyers, property rights
All of the above
All of the above
In the sales comparison formula presented, we always start with
The subject
The comparable
Either subject or comparable
Neither the subject nor comparable
The comparable
When choosing comparables, the appraiser analyzes:
Location, amenities
Sales or financing concessions
Motivations of sellers and buyers, property rights
All of the above
All of the above
The principle of competition can be between
Purchasers only
Tenants only
Purchasers and tenants
Purchasers and tenants as well as between sellers and landlords
Purchasers and tenants as well as between sellers and landlords
The principles of progression and regression are illustrations of what happens
when the principle of ______________ is violated.
Conformity
Balance
Change
Substitution
Balance
"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
Anticipation
Supply and Demand
,Change
Balance
Balance
Of the three appraisal approaches, the Sales Comparison Approach relies most
heavily on the economic principle of
Mathematics
Substitution
Equalization
Fairness
Substitution
"The result of the cause and effect relationship among the forces that influence
real property value" is the definition of the principle of
Anticipation
Supply and Demand
Change
Balance
Change
When is the Sales Comparison Approach NOT the best way to estimate value?
When there are many similar properties nearby
When the market is very strong
When the property is highly unusual
When the property is in a subdivision
When the property is highly unusual
Comparative analysis may employ quantitative analysis and qualitative analysis
Separately only
Together only
Separately or together
Only in the appraisal of non-residential properties
Separately or together
Qualitative analysis is used for elements that
Defy description
Are too far apart
Can't be ranked
Cannot be given a numerical value
Cannot be given a numerical value
The process by which a value indication is derived in the Sales Comparison
Approach is called
Comparative analysis
Quantitative analysis
, Qualitative analysis
Highest and best use analysis
Comparative analysis
Syndications are:
Private partnerships only
Public partnerships only
Either private or public partnerships
Corporations
Either Private or Public Partnerships.
Which type of ownership includes a right of survivorship?
Joint tenancy only
Tenancy in common only
Tenancy in common and joint tenancy
Joint tenancy and tenancy by the entirety
Joint tenancy and tenancy by the entirety
Which of the following are NOT classified as negative easements?
Conservation easements
Drainage easements
Historic preservation easements
Transferable Development Rights
Transferable Development rights
"Trespassing on the domain of another" is the definition of
Adverse possession
Easement
Encroachment
Conservation easement
Encroachment
"The order in which quantitative adjustments are applied to the sale prices of
comparable properties" is the definition of
Ranking
Ordinal analysis
Sales grid
Sequence of adjustments
Sequence of adjustments
Stanley gives his mother, Pearl, a life estate to occupy Stanley's home as long as
Pearl's sister Myrtle remains alive, after which possession of the property will
revert back to Stanley. Who is the remainderman in this situation?
Stanley
Pearl
2023 Questions and Answers with complete solution
A mortgage with equal payments for each period over the length of the loan is
called a __________ loan.
Standardized
Equal rate
Graduated payment
Fixed rate
Fixed Rate
The first step in the Sales comparison approach procedure is to
research the market
The COMPETENCY RULE of USPAP says an appraiser must have "the
_______________________ to complete the assignment competently."
Knowledge and experience
The Sales Comparison Approach was previously known as the:
Market Data Approach
A transaction could be verified with all of the following parties EXCEPT
Buyer
Another appraiser
Seller
Listing broker
Another appraiser
In residential properties, anticipated future benefits are amenities. They may
include all of the following EXCEPT
The security of having a roof over your head
The prestige of owning a nice home in a good neighborhood
Tax benefits
The privacy entailed in owning a home of your own
Tax benefits
Which of the following is NOT a common unit of comparison when appraising 2-4
unit properties?
Price per SF of GLA
Price per room
Price per SF of GBA
Price per bedroom
Price per SF of GLA
The final step in the Sales Comparison Approach procedure is
Verify the information
Select relevant units of comparison
,Reconcile the value indications
Research the market
Reconcile the value indications
When choosing comparables, the appraiser analyzes
Location, amenities, market conditions
Sales or financing concessions
Motivations of sellers and buyers, property rights
All of the above
All of the above
In the sales comparison formula presented, we always start with
The subject
The comparable
Either subject or comparable
Neither the subject nor comparable
The comparable
When choosing comparables, the appraiser analyzes:
Location, amenities
Sales or financing concessions
Motivations of sellers and buyers, property rights
All of the above
All of the above
The principle of competition can be between
Purchasers only
Tenants only
Purchasers and tenants
Purchasers and tenants as well as between sellers and landlords
Purchasers and tenants as well as between sellers and landlords
The principles of progression and regression are illustrations of what happens
when the principle of ______________ is violated.
Conformity
Balance
Change
Substitution
Balance
"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
Anticipation
Supply and Demand
,Change
Balance
Balance
Of the three appraisal approaches, the Sales Comparison Approach relies most
heavily on the economic principle of
Mathematics
Substitution
Equalization
Fairness
Substitution
"The result of the cause and effect relationship among the forces that influence
real property value" is the definition of the principle of
Anticipation
Supply and Demand
Change
Balance
Change
When is the Sales Comparison Approach NOT the best way to estimate value?
When there are many similar properties nearby
When the market is very strong
When the property is highly unusual
When the property is in a subdivision
When the property is highly unusual
Comparative analysis may employ quantitative analysis and qualitative analysis
Separately only
Together only
Separately or together
Only in the appraisal of non-residential properties
Separately or together
Qualitative analysis is used for elements that
Defy description
Are too far apart
Can't be ranked
Cannot be given a numerical value
Cannot be given a numerical value
The process by which a value indication is derived in the Sales Comparison
Approach is called
Comparative analysis
Quantitative analysis
, Qualitative analysis
Highest and best use analysis
Comparative analysis
Syndications are:
Private partnerships only
Public partnerships only
Either private or public partnerships
Corporations
Either Private or Public Partnerships.
Which type of ownership includes a right of survivorship?
Joint tenancy only
Tenancy in common only
Tenancy in common and joint tenancy
Joint tenancy and tenancy by the entirety
Joint tenancy and tenancy by the entirety
Which of the following are NOT classified as negative easements?
Conservation easements
Drainage easements
Historic preservation easements
Transferable Development Rights
Transferable Development rights
"Trespassing on the domain of another" is the definition of
Adverse possession
Easement
Encroachment
Conservation easement
Encroachment
"The order in which quantitative adjustments are applied to the sale prices of
comparable properties" is the definition of
Ranking
Ordinal analysis
Sales grid
Sequence of adjustments
Sequence of adjustments
Stanley gives his mother, Pearl, a life estate to occupy Stanley's home as long as
Pearl's sister Myrtle remains alive, after which possession of the property will
revert back to Stanley. Who is the remainderman in this situation?
Stanley
Pearl
