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

Gross adjustment percentage is the absolute sum of all adjustments divided by the comparable's sale price, indicating the degree of similarity between comparable and subject.

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

REO sales may reflect distressed conditions not applicable to the subject's anticipated exposure period; the appraiser must evaluate their relevance and adjust or exclude accordingly.

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

Verifying arm's-length status requires cross-referencing public records, MLS history, and often direct confirmation from parties involved in the transaction.

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

Personal property included in a sale price must be deducted from the comparable to isolate the real property value for a valid comparison.

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

Paired sales analysis isolates one variable (e.g., garage vs. no garage) between two similar sales to derive a market-supported adjustment amount.

(CRPA) Certified Relocation Professional Appraiser Practice Test

(CRPA) Certified Relocation Professional Appraiser Practice Test

CRPA Comparable Sales Analysis & Adjustments 2