CRPA Relocation Appraisal Methodology & Terminology 3

Question 1

In relocation appraisal terminology, 'cash equivalency' means:

Accepted Answer

Adjusting comparable sales to reflect what the price would have been with typical market financing

Answer

Cash equivalency converts sale prices with atypical financing (e.g., seller buy-downs) to equivalent cash prices reflecting normal market terms.

Question 2

Which of the following statements about the 'anticipated selling price' in a relocation appraisal is correct?

Accepted Answer

It is the price the appraiser forecasts the property will sell for within normal marketing time

Answer

The anticipated selling price is the appraiser's forecast of the most probable selling price achievable within the estimated normal marketing time.

Question 3

When analyzing market conditions in a relocation appraisal, an appraiser should examine all of the following EXCEPT:

Accepted Answer

The transferee's personal credit score

Answer

The transferee's personal credit score is irrelevant to market condition analysis; appraisers focus on property market dynamics.

Question 4

A 'gross adjustment' in a sales comparison approach is best described as:

Accepted Answer

The total of all individual adjustment amounts without regard to sign (positive or negative)

Answer

Gross adjustment is the sum of the absolute values of all adjustments, indicating total adjustment magnitude regardless of direction.

Question 5

Under ERC guidelines, which situation would most likely require the appraiser to obtain a second independent appraisal?

Accepted Answer

The two required appraisals differ by more than 5% in value conclusion

Answer

When two appraisals differ by more than 5%, ERC guidelines typically call for a third independent appraisal or review to resolve the discrepancy.

(CRPA) Certified Relocation Professional Appraiser Practice Test