ANSWERS|LATEST !!!!2026|GRADED A+| (EXAM
An area made up of a variety of complementary land uses is called a -
ANSWER neighborhood
An area in which similar properties compete with one another is called a -
ANSWER market area
When using a sales comparison approach, an appraiser is likely to obtain more data during
an - ANSWER active market
A transaction in which a buyer and seller are not related and are considered equal in terms
of bargaining power is referred to as a __________________ transaction -
ANSWER arm's length
Of the following sources of information used in the sales comparison approach, which
source is typically the most useful in estimating the market value of the subject property? -
ANSWER sales
Of the following sources of information used in the sales comparison approach, which
source is more likely to set the upper limit when estimating the value of the subject
property? - ANSWER listings
When making price adjustments using the sales comparison approach, what adjustments do
you make if the comparable is inferior to the subject? - ANSWER add the adjustment
amount from the price of the comparable
1
, A comparable has a 2 acre lot, whereas the subject property has a ½ acre lot. What
adjustment do you make? - ANSWER subtract the adjustment amount from the
price of the comparable
Using the table what would be the adjusted sales price of a comparable that had a garage
that the subject property did not have but lacked a bedroom that the subject property had,
if the comparable sold for $175,000?
Garage:2000
Bedroom:1500 - ANSWER 175,000-2000+1500=174,500
A comparable sold for $100,000 with a $90,000 loan. The seller paid 3% for discount points.
Seller paid points are not typical for the market area. The amount of the adjustment for the
seller paid points is - ANSWER 90,000*.03=2700
A property is being appraised using the sales comparison approach. The appraiser discovers
a similar property that was sold 1 year ago for $200,000. Since that time, the market has
increased by 5%. In this situation, the appraiser will probably need to adjust the price by -
ANSWER 200,000*.05= adding 10,000
A property is being appraised using the sales comparison approach. The appraiser discovers
a similar property that was sold 1 year ago for $100,000. Since that time, the market
increased by 2 1/2%. What is the price of the comparable adjusted for the market
conditions? - ANSWER 100,000*.025=2,500+100,000=102500
What would be the adjusted sales price of a comparable that is located in a neighborhood
that is superior to the subject property's neighborhood if the comparable sold for $120,000
and the appropriate neighborhood adjustment is 5%. - ANSWER 120,000*.05=6,000
120,000-6,000=114,000
2
An area made up of a variety of complementary land uses is called a -
ANSWER neighborhood
An area in which similar properties compete with one another is called a -
ANSWER market area
When using a sales comparison approach, an appraiser is likely to obtain more data during
an - ANSWER active market
A transaction in which a buyer and seller are not related and are considered equal in terms
of bargaining power is referred to as a __________________ transaction -
ANSWER arm's length
Of the following sources of information used in the sales comparison approach, which
source is typically the most useful in estimating the market value of the subject property? -
ANSWER sales
Of the following sources of information used in the sales comparison approach, which
source is more likely to set the upper limit when estimating the value of the subject
property? - ANSWER listings
When making price adjustments using the sales comparison approach, what adjustments do
you make if the comparable is inferior to the subject? - ANSWER add the adjustment
amount from the price of the comparable
1
, A comparable has a 2 acre lot, whereas the subject property has a ½ acre lot. What
adjustment do you make? - ANSWER subtract the adjustment amount from the
price of the comparable
Using the table what would be the adjusted sales price of a comparable that had a garage
that the subject property did not have but lacked a bedroom that the subject property had,
if the comparable sold for $175,000?
Garage:2000
Bedroom:1500 - ANSWER 175,000-2000+1500=174,500
A comparable sold for $100,000 with a $90,000 loan. The seller paid 3% for discount points.
Seller paid points are not typical for the market area. The amount of the adjustment for the
seller paid points is - ANSWER 90,000*.03=2700
A property is being appraised using the sales comparison approach. The appraiser discovers
a similar property that was sold 1 year ago for $200,000. Since that time, the market has
increased by 5%. In this situation, the appraiser will probably need to adjust the price by -
ANSWER 200,000*.05= adding 10,000
A property is being appraised using the sales comparison approach. The appraiser discovers
a similar property that was sold 1 year ago for $100,000. Since that time, the market
increased by 2 1/2%. What is the price of the comparable adjusted for the market
conditions? - ANSWER 100,000*.025=2,500+100,000=102500
What would be the adjusted sales price of a comparable that is located in a neighborhood
that is superior to the subject property's neighborhood if the comparable sold for $120,000
and the appropriate neighborhood adjustment is 5%. - ANSWER 120,000*.05=6,000
120,000-6,000=114,000
2
