Sales Comparison Approach McKissock Class 2023 Questions and Answers 100% Verified

Sales Comparison Approach McKissock Class 2023 Questions and Answers 100% Verified What is created in the mind of an individual or market participant? Value What is the motivation of an individual, group of persons, or business entity involving the purchase of an item? Desire As the term applies to appraisal, transferability refers to the number of goods and services that can be purchased with a unit of currency. (T/F) True What does not include physical mobility, but rather the control and possession of all the rights of ownership? Purchasing Power As it refers to real property appraisal, what word is best used to describe "value"? Opinion Value is a fact, or an estimate of fact. (T/F) False USPAP cautions appraisers to use the definition of market value that is specified in the DEFINITIONS section of USPAP. (T/F) False Which statement is TRUE regarding appraisers and value? Market value is only one type of value; appraisers estimate other types of value as well. It is important for appraisers to consider the specific definition of value that is appropriate for the appraisal assignment being undertaken. (T/F) True The rights and benefits inherent in the ownership of a parcel of land would be defined as: Real Property - It is commonly understood that real estate is the land and everything permanently attached thereto, while real property consists of the rights and benefits inherent in ownership. (Chapter 1 - The Importance of Value) USPAP cautions appraisers to use the definition of market value that is specified in the DEFINITIONS section of USPAP. (T/F) False - In its DEFINITIONS section, USPAP does not set forth a specific definition of market value; instead it provides a somewhat generic overview of the concept. Instead of providing a specific market value definition, USPAP cautions appraisers to identify the exact definition of value and its authority, in every market value appraisal. (Chapter 1 - USPAP and Value Definition) If an appraiser is valuing real property by sales comparison, whose actions is he or she LEAST likely to consider? Government Agencies Which phrase is an example of economic equilibrium? The quantity demanded is equal to the quantity supplied. What is the loss of income that results from not choosing an alternative? Opportunity Cost Which principle equally applies to residential and commercial properties? Substitution