Practice Test Geeks(CAR) Certified Appraisal Reviewer Practice Test
← All CAR Flashcard Decks

Appraisal Reviewer Property Valuations 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 Appraisal Reviewer Property Valuations flashcards as text

  1. What is the primary objective of a valuation analysis?

    Answer: To determine fair market value

    Valuation analysis determines the fair market value of an asset by considering various influencing factors.

  2. Which approach is commonly used to value income-generating properties?

    Answer: Income approach

    The income approach evaluates the present value of future cash flows to determine an asset’s value.

  3. Why is the cost approach used in valuation analysis?

    Answer: To determine replacement cost

    The cost approach estimates value based on the cost of rebuilding an asset with similar materials and functions.

  4. What is the key factor in the sales comparison approach?

    Answer: Recent sales of comparable assets

    The sales comparison approach relies on recent, similar sales in the market to establish an asset’s value.

  5. Which factor most influences the market value of a property?

    Answer: Market demand

    Market demand significantly impacts a property's value, driven by factors like location, economic conditions, and buyer preferences.

  6. Why is depreciation considered in valuation analysis?

    Answer: To account for loss in value over time

    Depreciation accounts for the loss in asset value due to age, wear and tear, and market conditions.