REE 4103 Exam 2 Questions and Answers Top Graded 2024
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Course
REE 4103
Institution
REE 4103
Sales comparison approach - An opinion of market value is developed by comparing properties similar to the subject property that have recently been sold, are listed for sale or are under contract
What is a major premise of the sales comparison approach? - An opinion of the market value of a prop...
REE 4103 Exam 2 Questions and
Answers Top Graded 2024
Sales comparison approach - An opinion of market value is developed by comparing
properties similar to the subject property that have recently been sold, are listed for sale
or are under contract
What is a major premise of the sales comparison approach? - An opinion of the market
value of a property can be supported by studying the market's reaction to comparable
and competitive properties
Comparative analysis of properties and transactions - _____ focuses on similarities and
differences that affect value, called elements of comparison
Procedure of the sales comparison approach - 1. Research the competitive market for
information on properties that are similar to the subject property and that have recently
sold.
2. Verify the information by confirming that the data obtained is factually accurate and
that the transactions reflect arm's length market considerations.
3. Select the most relevant units of comparison
4. Look for differences
5. Reconcile the carious value indications
What are some primary data sources for sales data? - Public records (courthouse
records, tax records), commercially available data from multiple listing and subscription
services, published articles in newspapers and online, and interviews with market
participants (attorneys, appraisers, brokers)
, REE 4103 Exam 2
The Uniform Standards of Professional Appraisal Practice (USPAP) - ____ requires
appraisers to analyze and report all agreements of sale, options and listings of the
subject property current as of the effective date
*Arm's length transaction - A transaction between unrelated parties under no duress.
If all comparable properties are identical to the subject property what happens? - No
adjustments to sales prices will be required
Elements of comparison - The characteristics of properties and transactions that help
explain the reasons prices of real estate vary
What is necessary in nearly all sales analyses because the appraiser will usually
analyze many sales that lead to several different conclusions? - Reconciliation
If a comparable property is 20% superior to the subject in some areas and 20% inferior
in other areas, what is the net adjustment and the gross adjustment? - Net adjustment is
0%
Gross adjustment is 40%
Comparative analysis - The general term used to identify the process in the sales
comparison approach in which quantitative and qualitative techniques are applied to
comparable sales data to derive a value indication
*Paired data analysis is based on the premise that when ____ - Two properties are
equivalent in all respects but one, the value of the single difference can be measured by
the difference in price between the two properties
Bracketing - A process in which an appraiser determines a probable range of values for
a property by applying qualitative techniques of comparative analysis to a group of
comparable sales
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