CAR Market Analysis & Trends Flashcards
6 cards from real CAR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CAR Market Analysis & Trends flashcards as text
Why must a reviewer evaluate the appraiser's marketing time estimate in the appraisal report?
Answer: Marketing time reflects the time a property would reasonably remain on the market and must be consistent with current market conditions
Marketing time is a market-supported estimate that should align with the absorption data and trend analysis in the report; an inconsistent estimate signals a review issue.
Which of the following best describes 'exposure time' as used in US appraisal practice?
Answer: The retrospective period before the effective date during which the property would have been listed to achieve the appraised market value
Exposure time is a retrospective concept linked to market value—it assumes the property was exposed to the market for a reasonable period ending on the effective date of value.
When reviewing an appraisal, if the subject neighborhood shows evidence of gentrification, what review issue must be addressed?
Answer: The appraiser must identify whether value trends are supported by sales data and avoid any protected-class basis for market delineation
Gentrifying markets often show rapid appreciation that must be supported by data, and market delineation must never reflect racial or protected-class composition under fair housing law.
A reviewer is tasked with reviewing an appraisal in a market affected by a recent natural disaster. What is the most critical review consideration?
Answer: Whether the effective date and comparable sales reflect post-disaster market conditions and any resulting value impacts
Post-disaster markets can shift dramatically; the reviewer must confirm the appraisal's effective date and comparable data reflect current market realities, not pre-disaster conditions.
In appraiser review practice, what is the significance of the 'neighborhood life cycle' concept?
Answer: It describes the stages of growth, stability, decline, and revitalization that affect property values in a neighborhood over time
The neighborhood life cycle model helps appraisers and reviewers understand value trends by placing a neighborhood within its developmental stage, which influences market direction and comparable selection.
When an appraiser cites external obsolescence as a value adjustment in a residential appraisal, how should the reviewer evaluate this claim?
Answer: Require market data evidence such as paired sales that demonstrate a measurable price impact from the external factor
External obsolescence adjustments must be market-supported; reviewers should look for paired sales or other evidence demonstrating that buyers actually discount price due to the identified external factor.