BC Real Estate Trading Services Course Property Valuation & Appraisal

Question 1

In BC, which method of property valuation estimates value by comparing the subject property to recently sold similar properties?

Accepted Answer

Direct comparison (sales comparison) approach

Answer

Income approach

Answer

Cost approach

Answer

Gross rent multiplier method

Question 2

The income approach to property valuation is most appropriate for:

Accepted Answer

Income-producing properties such as apartment buildings and commercial properties

Answer

Owner-occupied single family homes

Answer

Vacant land only

Answer

Heritage properties

Question 3

In BC real estate, 'market value' is best defined as:

Accepted Answer

The most probable price a property would sell for in an open, competitive market between informed, willing parties

Answer

The assessed value assigned by BC Assessment

Answer

The replacement cost of the property's improvements

Answer

The price listed on the MLS

Question 4

In a direct comparison approach for a BC residential property, adjustments are made to:

Accepted Answer

The comparable sales prices to reflect the differences compared to the subject property

Answer

The subject property's features to match comparables

Answer

The listing price of the subject property only

Answer

BC Assessment values only

Question 5

BC Assessment values properties for tax purposes as of:

Accepted Answer

July 1 of the previous year (assessment roll date)

Answer

The current date each year

Answer

January 1 of the current year

Answer

The date the property last sold

Question 6

Which of the following is NOT a factor that directly affects residential property value in BC?

Accepted Answer

The original purchase price paid by the current owner

Answer

Location and neighbourhood

Answer

Property size and features

Answer

Market supply and demand conditions