RESIDENTIAL SALES COMPARISON UPDATED EXAM
SCRIPT QUESTIONS AND SOLUTIONS GUARANTEE A+
✔✔Seller's Market - ✔✔A situation in the real estate market where sellers can choose
from a large number of buyers looking for property in an area
✔✔Specific Data - ✔✔Info that is relevant tot he subject property.
✔✔Substitution - ✔✔Theory that an informed buyer will not pay more for a home than a
comparable substitute
✔✔Comparable Property - ✔✔Possesses many of the same appeal factors, but eh
buyer for on property may bot necessarily by interested in the comparable property
✔✔Competitive Property - ✔✔Those that compete head to head. A potential buyer for
one property would also be interested in the competitive property
✔✔Decline - ✔✔The 3rd stage a neighborhood goes through in its life cycle, when
property values begin to fall as demand falls
✔✔Deed - ✔✔An instrument that conveys the grantor's interest in real property
✔✔District - ✔✔The narrowest of definitions of a market area. It is an area consisting of
one particular land use, such as multifamily residential, commercial, industrial, etc.
✔✔Functional Utility - ✔✔When a building has the adequate design and features to be
used as intended
✔✔Gentrification - ✔✔The process of rapid revitalization of properties in a
neighborhood, which causes current residents to be displaced
✔✔Growth - ✔✔The 1st stage a neighborhood goes through in its life cycle, when a
property value rise as development activity begins and continues
✔✔Market Area - ✔✔The broadest of all terms identifying the boundaries of a particular
area. It takes into account the land uses and characteristics of typical market
participants within the defined area
✔✔Neighborhood - ✔✔Any constant, contiguous are that may be identified by similar
characteristics of physical boundaries
✔✔Revitalization - ✔✔The final stage a neighborhood goes through in it life cycle, when
property values rise again as demand increases, resulting in increased renovation and
rehabilitation.
, ✔✔Stability - ✔✔The 2nd stage a neighborhood goes through in its life cycle, when the
area is built up to the point where these is little, if any, vacant property.
✔✔Workfile - ✔✔The documentation necessary to support the appraiser's analyses,
opinions, and conclusions
✔✔Bracketing - ✔✔A process in which an appraiser identifies a probable value range,
most often identifying values of properties that are inferior and those that are superior.
The appraiser then determines where an opinion of value for the subject should fall
within that range
✔✔Conditions of Sale - ✔✔A typical motivations of the parties of a transaction. Usually
makes the sale non-arms length.
✔✔Discount Points - ✔✔An amount paid to a lender (1% of a loan amount) when a loan
is made to make up the difference between the current market interest rate and the rate
a lender gives a borrower on a note. Discount points increase a lender's yeild on a not,
allowing the lender to five a borrower a lower interest rate.
✔✔Elements of Comparison - ✔✔Characteristics of a property or a transaction that can
be used to explain differences in the price paid in a transaction.
✔✔Excess Site - ✔✔A site that is nor needed to support the existing improvements or
highest and best use. Could have sell-off potential or be needed for future expansion of
the existing or anticipated improvements.
✔✔Gross Adjustments - ✔✔The overall total of all adjustments applies regardless of
whether the adjustment is applies as a positive or a negative. (+$1000 and -$1000 =
$2000 Gross Adjustments)
✔✔Linkages - ✔✔The proximity of property to common destinations and conveniences,
and the time required to reach those places.
✔✔Net Adjustments - ✔✔The sum of the adjustments taking into account whether the
adjustment was a positive or negative. (+$1000 and -$1000 = $0 Net Adjustments)
✔✔Paired Data Analysis - ✔✔The process of determining the value of specific property
characteristics or features by comparing pairs of similar properties. AKA Matched Paid
Analysis
✔✔Partial Interest - ✔✔Any interest in real estate that one may have, other than the full
bundle of rights.
SCRIPT QUESTIONS AND SOLUTIONS GUARANTEE A+
✔✔Seller's Market - ✔✔A situation in the real estate market where sellers can choose
from a large number of buyers looking for property in an area
✔✔Specific Data - ✔✔Info that is relevant tot he subject property.
✔✔Substitution - ✔✔Theory that an informed buyer will not pay more for a home than a
comparable substitute
✔✔Comparable Property - ✔✔Possesses many of the same appeal factors, but eh
buyer for on property may bot necessarily by interested in the comparable property
✔✔Competitive Property - ✔✔Those that compete head to head. A potential buyer for
one property would also be interested in the competitive property
✔✔Decline - ✔✔The 3rd stage a neighborhood goes through in its life cycle, when
property values begin to fall as demand falls
✔✔Deed - ✔✔An instrument that conveys the grantor's interest in real property
✔✔District - ✔✔The narrowest of definitions of a market area. It is an area consisting of
one particular land use, such as multifamily residential, commercial, industrial, etc.
✔✔Functional Utility - ✔✔When a building has the adequate design and features to be
used as intended
✔✔Gentrification - ✔✔The process of rapid revitalization of properties in a
neighborhood, which causes current residents to be displaced
✔✔Growth - ✔✔The 1st stage a neighborhood goes through in its life cycle, when a
property value rise as development activity begins and continues
✔✔Market Area - ✔✔The broadest of all terms identifying the boundaries of a particular
area. It takes into account the land uses and characteristics of typical market
participants within the defined area
✔✔Neighborhood - ✔✔Any constant, contiguous are that may be identified by similar
characteristics of physical boundaries
✔✔Revitalization - ✔✔The final stage a neighborhood goes through in it life cycle, when
property values rise again as demand increases, resulting in increased renovation and
rehabilitation.
, ✔✔Stability - ✔✔The 2nd stage a neighborhood goes through in its life cycle, when the
area is built up to the point where these is little, if any, vacant property.
✔✔Workfile - ✔✔The documentation necessary to support the appraiser's analyses,
opinions, and conclusions
✔✔Bracketing - ✔✔A process in which an appraiser identifies a probable value range,
most often identifying values of properties that are inferior and those that are superior.
The appraiser then determines where an opinion of value for the subject should fall
within that range
✔✔Conditions of Sale - ✔✔A typical motivations of the parties of a transaction. Usually
makes the sale non-arms length.
✔✔Discount Points - ✔✔An amount paid to a lender (1% of a loan amount) when a loan
is made to make up the difference between the current market interest rate and the rate
a lender gives a borrower on a note. Discount points increase a lender's yeild on a not,
allowing the lender to five a borrower a lower interest rate.
✔✔Elements of Comparison - ✔✔Characteristics of a property or a transaction that can
be used to explain differences in the price paid in a transaction.
✔✔Excess Site - ✔✔A site that is nor needed to support the existing improvements or
highest and best use. Could have sell-off potential or be needed for future expansion of
the existing or anticipated improvements.
✔✔Gross Adjustments - ✔✔The overall total of all adjustments applies regardless of
whether the adjustment is applies as a positive or a negative. (+$1000 and -$1000 =
$2000 Gross Adjustments)
✔✔Linkages - ✔✔The proximity of property to common destinations and conveniences,
and the time required to reach those places.
✔✔Net Adjustments - ✔✔The sum of the adjustments taking into account whether the
adjustment was a positive or negative. (+$1000 and -$1000 = $0 Net Adjustments)
✔✔Paired Data Analysis - ✔✔The process of determining the value of specific property
characteristics or features by comparing pairs of similar properties. AKA Matched Paid
Analysis
✔✔Partial Interest - ✔✔Any interest in real estate that one may have, other than the full
bundle of rights.
