REAL 110 Module 5 (Questions and Answers A+ Graded 100% Verified)

REAL 110 Module 5 (Questions and Answers A+ Graded 100% Verified) 1. According to what Valuation Principle will a buyer not pay more for a property than it would cost to acquire an equally desirable substitute property with similar features A. Anticipation B. Substitution C. Conformity D. Contribution CORRECT ANSWER: B. Substitution 2. An appraiser has selected two sales properties that are alike except for one feature. Comparing the two sales to derive a market adjustment for the feature is called what? A. Trend analysis B. Matched pair analysis (aka paired-data analysis) C. Statistical analysis D. Ranking analysis CORRECT ANSWER: B. Matched pair analysis (aka paired-data analysis) 3. All of the following can be considered as data for analyzing sales comparables to the subject property EXCEPT: A. Active listings B. Pending sales C. Closed sales D. Fraudulent sales CORRECT ANSWER: D. Fraudulent sales 4. An appraiser has adjusted a comparable sale because it sold 12 months ago. In this instance what does the time adjustment reflect? A. Condition of sale B. Property rights conveyed C. Financing terms D. Market conditions CORRECT ANSWER: D. Market conditions 5. Comparable sales are adjusted to the: A. Consumer Price Index B. Comparables C. Subject D. None of the above CORRECT ANSWER: C. Subject 6. Superior elements of comparison items in a comparable sale require a: A. Downward adjustment (-) B. Upward adjustment (+) CORRECT ANSWER: A. Downward adjustment (-) 7. Inferior elements of comparison items in a comparable sale require a: A. Negative adjustment (-) B. Positive adjustment (+) CORRECT ANSWER: B. Positive adjustment (+) 8. What is the proper order for the steps in the Sales Comparison Approach? A. Collect data, verify data, comparative analysis, select units of comparison, reconciliation B. Reconciliation, verify data, collect data, select units of comparison, comparative analysis C. Comparative analysis, collect data, verify data, select units of comparison, reconciliation D. Collect data, verify data, select units of comparison, comparative analysis, reconciliation CORRECT ANSWER: D. Collect data, verify data, select units of comparison, comparative analysis, reconciliation 9. An appraiser finds that a comparable property's view is better than that of the subject property. The appraiser would adjust the price of the: A. Comparable property downward B. Comparable property upward C. Subject property downward D. Subject property upward CORRECT ANSWER: A. Comparable property downward 10. While appraising a property, an appraiser found that the location of a comparable was superior by $25,000, but the comp's smaller size was inferior by $50,000. What is the indicated value if this comp sold for $600,000? A. $675,000 B. $525,000 C. $625,000 D. $575,000 CORRECT ANSWER: C. $625,000