IACP Market Analysis & Property Valuation 2

Question 1

Which statistical measure best indicates the degree of price dispersion around the mean sale price in a market area?

Accepted Answer

Standard deviation

Answer

Standard deviation measures how widely individual sale prices are dispersed around the mean, making it the best indicator of price variability.

Question 2

In a declining market, an appraiser should give MOST weight to which comparable sales?

Accepted Answer

Most recent sales regardless of location

Answer

In a declining market, the most recent sales best reflect current market conditions and should receive the greatest weight.

Question 3

The principle stating that value is created and maintained when land uses in an area are compatible with each other is known as:

Accepted Answer

Conformity

Answer

The principle of conformity holds that maximum value is achieved when land uses in an area are compatible and harmonious.

Question 4

A property sold for $350,000 and the gross rent multiplier in the area is 140. What is the estimated monthly rent?

Accepted Answer

$2,500

Answer

$350,000 ÷ 140 = $2,500 estimated monthly rent using the gross rent multiplier.

Question 5

When analyzing a market, which factor would MOST indicate an emerging buyer's market?

Accepted Answer

Increasing months of supply

Answer

Increasing months of supply means more inventory relative to demand, which signals a shift toward buyer's market conditions.

(IACP) Independent Appraisers Certification Program Practice Test