Unit 9

Adjustments are applied to: a. the comparable properties. b. the subject property. c. the property being appraised. d. both the subject and comparable properties.

A

As a market data resource, a party to a transaction is: a. a principal like the buyer or the seller. b. a local real estate agent. c. other appraisers in the area. d. owners of properties used as comparable sales.

A

If the subject property has a feature that the ������� property does not have, ������� the value of the feature ���� the comparable price. a. comparable, add, to b. subject, add, to c. subject, subtract, from d. comparable, subtract, from

A

The transaction price of a comparable property is $200,000. The appraiser determines that the comparable is 5% more desirable because of special financing, the conditions of the sale affected the subject negatively by 8%, the location of the comparable is 15% better but it is physically 5% worse than the subject, and since the comparable sold, the market has improved by 20%. What is the indicated value of the subject? a. $187,000 b. $253,000 c. $220,000 d. $169,000

A

Which of the following lists the steps for the sales comparison approach in order? a. Collect data, verify data, apply adjustments, reconcile values b. Collect data, analyze data, reconcile values, apply adjustments c. Analyze data, verify data, reconcile values, apply adjustments d. Analyze data, apply adjustments, verify data, reconcile values

A

A comparable sold nine months ago for $268,000. The appraiser concludes that property values have increased by 5% per year. What should the adjustment be? a. $278,000 b. $10,000 c. $27,800 d. $13,400

B

The overruling principle behind the sales comparison approach is: a. anticipation. b. substitution. c. multiplication. d. supplication.

B

Which of the following statements regarding comps and geographic area is incorrect? a. It may be necessary to consider comparables in other neighborhoods. b. Appraisers must limit the comparables to the neighborhood of the subject. c. Depending on the property type, an appraiser may need to look in different states for a comparable. d. The distance an appraiser will have to go for comparable information varies from assignment to assignment.

B

A flower shop was purchased in the summer of 2009 for $500,000. It sold in the summer of 2011 for $450,000. Using the sale-resale analysis, determine the annual rate at which this market is decreasing. a. 10% b. 1% c. 5% d. 9%

C

In which situation can the sales comparison approach be used? a. When appraising single-family residences, multi-residential properties, and vacant land only b. When appraising residential and income property c. Any property when sufficient comparable data is available d. When appraising special purpose buildings, residential property, and qualified income properties

C

Sales information for a 30,000 square foot warehouse is a good indicator of value for: a. high-rise office space. b. single-family residences. c. warehouses of similar volume. d. strip center.

C

While researching comparable properties, Frank finds an identical comp in the same tract of homes. He notes that as part of the sales agreement, the seller partially financed the sale. Frank should: a. use the comparable with no further action. b. not use the comparable because it has atypical financing. c. determine any impact on the selling price and apply a cash equivalency formula to the comparable to adjust for the non-market financing. d. apply a cash equivalency formula to the subject to adjust for the non-market financing.

C

A comparable sold recently for $100,000 and requires a positive adjustment for locational differences of $12,000 and a negative adjustment for physical differences of $7,500. Under normal practice, should an appraiser use this comp? a. Yes. b. No, because it exceeds the federal guideline for single line item adjustments. c. No, because it exceeds the Ginnie Mae guideline for gross adjustments. d. Possibly not, because it is a large adjustment (12%).

D

Adjustments are made on: a. a dollar basis only. b. a percentage basis only. c. a fractional basis. d. both dollar and percentage basis

D

After careful analysis, Brandi determines the adjusted value for her three best comparable properties are $400,000, $420,000, and $425,000. What is the indicated value of the subject? a. $415,000 b. $412,500 c. $422,500 d. It depends on which property or properties Brandi gives most weight to in her analysis.

D

How many comparables should an appraiser use on each assignment? a. Three closed sales b. Three closed sales and three pending sales c. Three sales of any kind d. As many as it takes to arrive at a credible analysis

D

Locational adjustments may be based on: a. changes in zoning. b. proximity to negative influences like an airport. c. market perception. d. all of the above.

D

The comparison approach is least applicable when: a. there is a sufficient number of comps. b. appraising property types that are bought and sold regularly. c. appraising vacant land. d. appraising a large shopping center.

D

The service that appraisers and real estate agents use to research information on properties currently for sale is called the: a. County Recorder's Office. b. Multiple Regression Service. c. Title Plant Distributor. d. Multiple Listing Service.

D

Which of the following lists the proper sequence of adjustments? a. Conditions of sale, rights conveyed, financing, and time b. Financing, time, conditions of sale, and location c. Location, financing, time, and expenditures after purchase d. Rights conveyed, financing, time, and physical characteristics

D