RESIDENTIAL SALES COMPARISON
AND INCOME APPROACHES|| 260
EXAM QUESTIONS AND EXPERT
VERIFIED ANSWERS LATEST
UPDATE
When choosing comparables, the appraiser analyzes:
A. Location, amenities, market conditions
B. Sales or financing concessions
C. Motivations of sellers and buyers, property rights
D. All of the above - ANSWER- D. All of the above
How many comparables are typically used by appraisers in the Sales
Comparison Approach?
A. No less than three
B. No more than four
C. At least six
D. Two - ANSWER- A. No less than three
,The Sales Comparison Approach was previously known as the:
A. Market Approach
B. Market Data Approach
C. Direct Sales Comparison Approach
D. All of the above - ANSWER- D. All of the above
Of the three appraisal approaches, the Sales Comparison Approach relies
most heavily on the economic principle of:
A. Contribution
B. Substitution
C. Equalization
D. Anticipation - ANSWER- B. Substitution
"The perception that value is created by the expectation of benefits to be
derived in the future" is the definition of the principle of
A. Anticipation
B. Supply and Demand
C. Change
D. Balance - ANSWER- A. Anticipation
,"The result of the cause and effect relationship among the forces that
influence real property value" is the definition of the principle of
A. Anticipation
B. Supply and Demand
C. Change
D. Balance - ANSWER- C. Change
"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
A. Competition
B. Balance
C. Conformity
D. Progression - ANSWER- D. Progression
"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
A. Anticipation
B. Supply and Demand
C. Change
D. Balance - ANSWER- D. Balance
, "In appraisal, off-site conditions that affect a property's value" is part of
the definition of the principle of
A. Externalities
B. Balance
C. Regression
D. Progression - ANSWER- A. Externalities
Which of the following is the sales comparison formula?
A. Price of comparable ± adjustments = value of subject
B. Price of comparable - adjustments = price of subject
C. Price of subject ± adjustments = value of comparable
D. Price of subject + adjustments = value of comparable - ANSWER-
A. Price of comparable ± adjustments = value of subject
The first step in the Sales Comparison Approach procedure is
A. Verify the information
B. Select relevant units of comparison
C. Define the scope of work
D. Research the market - ANSWER- D. Research the market
Adjustments made in the sales comparison process always start with:
AND INCOME APPROACHES|| 260
EXAM QUESTIONS AND EXPERT
VERIFIED ANSWERS LATEST
UPDATE
When choosing comparables, the appraiser analyzes:
A. Location, amenities, market conditions
B. Sales or financing concessions
C. Motivations of sellers and buyers, property rights
D. All of the above - ANSWER- D. All of the above
How many comparables are typically used by appraisers in the Sales
Comparison Approach?
A. No less than three
B. No more than four
C. At least six
D. Two - ANSWER- A. No less than three
,The Sales Comparison Approach was previously known as the:
A. Market Approach
B. Market Data Approach
C. Direct Sales Comparison Approach
D. All of the above - ANSWER- D. All of the above
Of the three appraisal approaches, the Sales Comparison Approach relies
most heavily on the economic principle of:
A. Contribution
B. Substitution
C. Equalization
D. Anticipation - ANSWER- B. Substitution
"The perception that value is created by the expectation of benefits to be
derived in the future" is the definition of the principle of
A. Anticipation
B. Supply and Demand
C. Change
D. Balance - ANSWER- A. Anticipation
,"The result of the cause and effect relationship among the forces that
influence real property value" is the definition of the principle of
A. Anticipation
B. Supply and Demand
C. Change
D. Balance - ANSWER- C. Change
"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
A. Competition
B. Balance
C. Conformity
D. Progression - ANSWER- D. Progression
"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
A. Anticipation
B. Supply and Demand
C. Change
D. Balance - ANSWER- D. Balance
, "In appraisal, off-site conditions that affect a property's value" is part of
the definition of the principle of
A. Externalities
B. Balance
C. Regression
D. Progression - ANSWER- A. Externalities
Which of the following is the sales comparison formula?
A. Price of comparable ± adjustments = value of subject
B. Price of comparable - adjustments = price of subject
C. Price of subject ± adjustments = value of comparable
D. Price of subject + adjustments = value of comparable - ANSWER-
A. Price of comparable ± adjustments = value of subject
The first step in the Sales Comparison Approach procedure is
A. Verify the information
B. Select relevant units of comparison
C. Define the scope of work
D. Research the market - ANSWER- D. Research the market
Adjustments made in the sales comparison process always start with:
