CGA Sales Comparison Approach 3

Question 1

When selecting comparable sales, an appraiser should FIRST seek comparables that:

Accepted Answer

Are located within the same neighborhood or competing market area

Answer

Geographic proximity and market competitiveness are the primary selection criteria because buyers and sellers in the same market set the benchmark for value.

Question 2

A 'bracket' in the sales comparison approach means the appraiser has selected comparables that:

Accepted Answer

Include sales both superior and inferior to the subject for a given attribute

Answer

Bracketing requires finding comparables on both sides (above and below) of the subject's characteristic, anchoring the subject's value within a defensible range.

Question 3

The most critical reason to verify a sale with a party to the transaction is to:

Accepted Answer

Determine whether atypical conditions influenced the sale price

Answer

Verification with a knowledgeable party — buyer, seller, or broker — reveals motivations, concessions, or conditions that could make the sale non-arm's-length.

Question 4

Which adjustment sequence is considered correct in USPAP-compliant appraisal practice?

Accepted Answer

Transactional adjustments (financing and conditions of sale) before property adjustments

Answer

Transactional adjustments — financing terms and conditions of sale — must be applied first because they normalize the sale price before property characteristics are compared.

Question 5

An appraiser's adjustment for a swimming pool is best supported by:

Accepted Answer

Paired sales of otherwise identical properties with and without pools

Answer

Paired sales analysis using nearly identical properties — one with and one without a pool — directly measures the market's reaction to the feature.

(CGA) Certified General Appraiser Practice Test

(CGA) Certified General Appraiser Practice Test

CGA Sales Comparison Approach 3