NY Real Estate Exam NY Property Valuation & Appraisal

Question 1

What are the three approaches to property valuation?

Accepted Answer

Sales comparison (market) approach, cost approach, and income capitalization approach

Answer

Only the sales comparison approach

Answer

Only the cost approach

Answer

The tax assessment approach only

Question 2

What is the sales comparison approach to valuation?

Accepted Answer

Estimating value by comparing the subject property to recently sold similar properties, adjusting for differences

Answer

Calculating the cost to rebuild the property

Answer

Estimating value based on rental income

Answer

Using the tax assessed value as market value

Question 3

What factors affect property value in New York?

Accepted Answer

Location, property condition, size, local market conditions, zoning, transportation access, school district, and economic factors

Answer

Only the number of bedrooms

Answer

Only the property's age

Answer

Only the neighborhood crime rate

Question 4

What is a Comparative Market Analysis (CMA) in NY real estate?

Accepted Answer

An analysis prepared by a real estate agent using comparable sales to estimate a property's market value for listing or purchasing purposes

Answer

A formal appraisal performed by a licensed appraiser

Answer

A government tax assessment

Answer

A building inspection report

Question 5

What is the income approach to valuation?

Accepted Answer

A method estimating property value based on the income it produces, using net operating income divided by the capitalization rate

Answer

A method based on the owner's personal income

Answer

A tax calculation method

Answer

A method using construction costs

Question 6

What is the difference between market value and assessed value in NY?

Accepted Answer

Market value is what a property would sell for; assessed value is the value assigned by the tax assessor for property tax purposes, often lower than market value

Answer

They are always equal

Answer

Assessed value is always higher

Answer

Market value is set by the government