ARA Market Analysis & Comparable Sales Flashcards
6 cards from real ARA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 ARA Market Analysis & Comparable Sales flashcards as text
What is the primary purpose of a market analysis in rural property appraisal?
Answer: To understand supply, demand, and pricing trends in a specific area
A market analysis examines supply, demand, and pricing trends to provide context for the appraiser's value opinion.
Which source is most commonly used by rural appraisers to find comparable sales data?
Answer: MLS databases and county assessor records
MLS databases and county assessor records are the primary, verifiable sources for rural comparable sales data.
What does 'arm's length transaction' mean in rural real estate appraisal?
Answer: A sale between unrelated parties acting without duress or special conditions
An arm's length transaction involves unrelated, informed parties acting freely, making it a valid market indicator.
When selecting comparable sales for rural acreage, which factor is MOST important?
Answer: Similar size, location, and physical characteristics
Comparables must closely match the subject's size, location, and physical features to produce a reliable value indication.
What is the recommended time frame for comparable sales in a thin rural market with limited transactions?
Answer: 6 to 24 months, extended when market activity is limited
USPAP allows appraisers to extend the search period in thin markets as long as market condition adjustments are applied.
In rural appraisal, 'competitive market area' is best defined as:
Answer: The geographic region where properties compete for the same pool of buyers
The competitive market area encompasses all properties that a typical buyer would consider as substitutes for the subject.