Real Estate Appraisal Study Questions and Complete Solutions

Depreciation caused by external obsolescence is generally incurable. Adding more bathrooms to a three-bedroom house that has only one bathroom may be an example of incurable functional obsolescence. Brokers and sales agents often use a simplified version of the sales comparison approach for residential real estate called a comparative market analysis. Which of the following statements is TRUE? A comparative market analysis is a comparison of recently sold properties that are similar to a seller's parcel of real estate. What is the primary difference between a price placed on a property by a real estate sales person and a value placed by a professional appraiser? Real estate agent pricing is informal, while professional appraisers offer a formal or accurate number. When an appraiser reconciles the values received from the three approaches of value, which of the following occurs? The appraiser places more weight on the estimate of value from the sales comparison approach when valuing existing single-family properties. Appraisers are now obligated to report the presence of any environmental factors that could pose a risk to property values. What sort of environmental risks might be reported? The appraiser is expected to be knowledgeable about the area surrounding a property and anything that could affect value now or in the future. Environmental concerns are increasing among consumers and real estate professionals. In the sales comparison approach, the sales price for each of the comparable properties is changed by the net adjustments calculated in the analysis, resulting in what sales price range for the comparable properties? Adjusted Which classification permits a person with no real estate appraisal experience to enter the real estate appraisal profession and work toward the requirements to become a licensed appraiser? Approved appraiser trainee If the value of a residential property increases because the zoning changed from residential to commercial, this is an example of the principle of change.