CRPA Comparable Sales Analysis & Adjustments

Question 1

In a relocation appraisal, what is the primary criterion for selecting a comparable sale?

Accepted Answer

The comparable should reflect similar market conditions, location, and physical characteristics to the subject

Answer

The sale must have occurred within the last 6 months regardless of location

Answer

Only foreclosure sales should be used as comparables to establish distressed market value

Answer

Comparables must always be located within the same subdivision as the subject property

Question 2

When making a dollar adjustment for a swimming pool that the comparable has but the subject lacks, the adjustment to the comparable's sale price would be:

Accepted Answer

Negative, subtracting the pool's contributory value from the comparable's price

Answer

Positive, adding the pool's contributory value to the comparable's price

Answer

Zero, because amenities never affect value in relocation appraisals

Answer

Positive only if the pool is in-ground

Question 3

What does the term 'net adjustment' mean when applied to a comparable sale?

Accepted Answer

The algebraic sum of all positive and negative adjustments applied to a comparable

Answer

The total of all upward adjustments made to the comparable

Answer

The total of all downward adjustments made to the comparable

Answer

The average adjustment divided by the number of line items

Question 4

Under ERC appraisal guidelines, what is the maximum recommended time frame for comparable sales used in a relocation appraisal in a stable market?

Accepted Answer

6 months

Answer

3 months

Answer

12 months

Answer

24 months

Question 5

Which type of adjustment accounts for the difference in sale date between the comparable and the effective date of the appraisal?

Accepted Answer

Market conditions (time) adjustment

Answer

Location adjustment

Answer

Condition adjustment

Answer

Gross living area adjustment

Question 6

A comparable sale has 200 more square feet of gross living area (GLA) than the subject. If the market-derived rate is $50/SF, the adjustment applied to the comparable is:

Accepted Answer

-$10,000

Answer

+$10,000

Answer

+$5,000

Answer

-$5,000

Question 7

What is the purpose of bracketing comparables in a relocation appraisal?

Accepted Answer

To show that the subject's indicated value falls between sales that are superior and inferior in key features

Answer

To ensure all comparables are from the same neighborhood

Answer

To limit the number of comparables to three

Answer

To confirm that all comparables were sold at arm's length