CRPA Comparable Sales Analysis & Adjustments 2

Question 1

In relocation appraisal, what does 'gross adjustment percentage' measure?

Accepted Answer

The absolute sum of all adjustments (positive and negative) divided by the comparable's sale price

Answer

The sum of all positive adjustments divided by the comparable's sale price

Answer

The net adjustment divided by the subject's estimated value

Answer

The total number of line-item adjustments made to all comparables

Question 2

When a comparable sale was sold as a bank-owned (REO) property, how should the relocation appraiser typically treat it?

Accepted Answer

Note the distressed nature and consider whether a market conditions adjustment is warranted or whether it should be excluded

Answer

Use it without adjustment as it reflects current market reality

Answer

Discard it entirely since REO sales are always invalid

Answer

Always apply a flat 10% upward adjustment for REO status

Question 3

Which data source is most commonly used to verify that a comparable sale was an arm's-length transaction?

Accepted Answer

Public records, MLS data, and direct buyer/seller or agent confirmation

Answer

Zillow automated valuation

Answer

Deed transfer documents only

Answer

Assessor's estimated market value

Question 4

A comparable sale includes personal property (appliances) valued at $5,000 in the sale price. How should the appraiser handle this?

Accepted Answer

Make a negative $5,000 adjustment to the comparable to isolate real property value

Answer

Ignore it since personal property is always de minimis

Answer

Add $5,000 to the subject's value

Answer

Report it as a condition adjustment

Question 5

What is 'paired sales analysis' used for in comparable adjustments?

Accepted Answer

Identifying market-supported dollar or percentage adjustments by isolating a single variable between two otherwise similar sales

Answer

Comparing two appraisals of the same property

Answer

Pairing each comparable with a listing to confirm marketability

Answer

Comparing REO and non-REO sales for distress adjustment

Question 6

When the subject property has superior view amenities compared to all available comparables, the appraiser should:

Accepted Answer

Apply a positive adjustment to each comparable to reflect the subject's superior view

Answer

Ignore the view difference to avoid speculative adjustments

Answer

Apply a negative adjustment to the subject's indicated value

Answer

Use only listings rather than sales as comparables

Question 7

What is the significance of a high gross adjustment percentage in a comparable sale used in a relocation appraisal?

Accepted Answer

It suggests the comparable may be significantly dissimilar from the subject, reducing its reliability

Answer

It indicates the comparable is ideal and requires little adjustment

Answer

It means the comparable sold at a premium above market value

Answer

It confirms the comparable is from the same market area