CCS Property Valuation & Appraisal 2

Question 1

Which appraisal approach is most commonly used as the primary method for valuing condominium units?

Accepted Answer

Sales comparison approach

Answer

The sales comparison approach is primary for condominiums because comparable unit sales provide the most reliable market evidence.

Question 2

When appraising a condominium, what does the term 'fee simple' ownership refer to?

Accepted Answer

Ownership of a unit plus an undivided interest in common elements

Answer

In condominium ownership, fee simple typically includes the unit plus an undivided interest in common areas, not absolute freehold of all land.

Question 3

A condominium unit sells for $320,000. The comparable unit next door sold for $300,000 but lacked an assigned covered parking space valued at $15,000. What is the adjusted sale price of the comparable?

Accepted Answer

$315,000

Answer

Since the comparable lacks the parking space, you add its value to the comp: $300,000 + $15,000 = $315,000.

Question 4

Which factor most significantly affects the value of a high-rise condominium unit compared to identical lower-floor units?

Accepted Answer

Floor level and view

Answer

Floor level and the associated views are primary value drivers in high-rise condominiums, commanding significant premiums.

Question 5

What is the purpose of a 'retrospective appraisal' in condominium transactions?

Accepted Answer

To determine value as of a past effective date

Answer

A retrospective appraisal establishes value as of a historical date, often needed for estate settlements, litigation, or tax purposes.

(CCS) Certified Condominium Specialist Practice Test

(CCS) Certified Condominium Specialist Practice Test

CCS Property Valuation & Appraisal 2