MRP Property Valuation & Appraisal 3

Question 1

In the sales comparison approach, what adjustment is made when a comparable property has a feature that the subject property LACKS?

Accepted Answer

A positive adjustment is added to the comparable's sale price

Answer

When a comparable has a superior feature that the subject lacks, a positive adjustment is added to the comparable to make it more like the inferior subject property.

Question 2

What is 'market conditions adjustment' (also called 'time adjustment') in the appraisal process?

Accepted Answer

Correcting comparable sale prices to reflect changes in market conditions between the sale date and the effective appraisal date

Answer

A market conditions adjustment corrects for the fact that property values may have changed between when a comparable sold and the current effective date of the appraisal.

Question 3

What is the primary reason VA appraisers are assigned by the VA rather than selected by the lender?

Accepted Answer

Independence ensures the appraiser is not pressured by parties with financial interest in the transaction

Answer

VA appraisers are assigned by the VA to maintain independence and prevent lenders or real estate agents from pressuring the appraiser toward a predetermined value.

Question 4

In areas near military installations, what market factor may cause property values to fluctuate significantly?

Accepted Answer

BRAC (Base Realignment and Closure) announcements

Answer

BRAC announcements can dramatically affect local real estate markets by signaling base closures (depressing values) or expansions (boosting values) near military installations.

Question 5

Which of the following best describes 'functional obsolescence' in property appraisal?

Accepted Answer

A loss in value due to a deficiency or superadequacy in the property's design or layout

Answer

Functional obsolescence is a loss in value resulting from outmoded or unacceptable property features such as poor floor plans, outdated kitchens, or inadequate electrical systems.

(MRP) Military Relocation Professional Practice Test

(MRP) Military Relocation Professional Practice Test

MRP Property Valuation & Appraisal 3