Sales Comparison Approach McKissock Class| 320 questions| with complete solutions

What is created in the mind of an individual or market participant? CORRECT ANSWERS: Value What is the motivation of an individual, group of persons, or business entity involving the purchase of an item? CORRECT ANSWERS: 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) CORRECT ANSWERS: True What does not include physical mobility, but rather the control and possession of all the rights of ownership? CORRECT ANSWERS: Purchasing Power As it refers to real property appraisal, what word is best used to describe "value"? CORRECT ANSWERS: Opinion Value is a fact, or an estimate of fact. (T/F) CORRECT ANSWERS: False USPAP cautions appraisers to use the definition of market value that is specified in the DEFINITIONS section of USPAP. (T/F) CORRECT ANSWERS: False Which statement is TRUE regarding appraisers and value? CORRECT ANSWERS: 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) CORRECT ANSWERS: True The rights and benefits inherent in the ownership of a parcel of land would be defined as: CORRECT ANSWERS: 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) CORRECT ANSWERS: 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? CORRECT ANSWERS: Government Agencies Which phrase is an example of economic equil