ARA ARA Market Analysis & Comparable Sales 2

Question 1

What adjustment is made to a comparable sale that has superior paved road frontage compared to the subject's gravel road access?

Accepted Answer

Negative adjustment to the comparable

Answer

A downward (negative) adjustment is applied to the comparable to account for its superior road frontage relative to the subject.

Question 2

The 'paired sales analysis' technique is used to:

Accepted Answer

Isolate and quantify the value contribution of a single feature

Answer

Paired sales analysis compares two sales that differ only in one characteristic to extract a market-supported dollar or percentage adjustment.

Question 3

A 'distressed sale' in rural appraisal analysis refers to:

Accepted Answer

A sale where the seller faced financial duress such as foreclosure or forced liquidation

Answer

Distressed sales do not reflect arm's length market conditions and are generally excluded or adjusted in the comparable selection process.

Question 4

When adjusting for time (market conditions) in rural comparable sales, the appraiser must:

Accepted Answer

Support the adjustment with market data showing documented price changes over time

Answer

Market condition adjustments must be supported by evidence such as paired sales, repeat sales, or trend analysis—not arbitrary percentages.

Question 5

Which factor is MOST relevant when making location adjustments in rural property appraisal?

Accepted Answer

Proximity to markets, paved roads, utilities, and community services

Answer

In rural appraisal, location value is driven by access, proximity to markets, infrastructure, and services that affect usability and buyer demand.

(ARA) Accredited Rural Appraiser Practice Test