RPA Sales Comparison Approach 2

Question 1

What is 'bracketing' in the sales comparison approach?

Accepted Answer

Selecting comparables with features both superior and inferior to the subject

Answer

Estimating value between two time periods

Answer

Averaging the adjusted sale prices of all comparables

Answer

Excluding outlier sales from the analysis

Question 2

When a comparable sale involved seller-paid closing costs (concessions) of $5,000, how should the appraiser treat this?

Accepted Answer

Subtract $5,000 from the comparable's sale price

Answer

Ignore it as it does not affect market value

Answer

Add $5,000 to the comparable's sale price

Answer

Discard the comparable and find another

Question 3

What is the 'unit of comparison' in the sales comparison approach?

Accepted Answer

A common denominator used to compare properties of different sizes or types

Answer

The total number of comparable sales analyzed

Answer

The number of adjustments applied to each comparable

Answer

The final adjusted value per square foot

Question 4

What does 'arm's length transaction' mean in real property appraisal?

Accepted Answer

The buyer and seller acted independently with no special relationship or duress

Answer

The transaction was completed without a real estate agent

Answer

The property was on the market for at least 30 days

Answer

The sale was financed through a conventional mortgage

Question 5

Which of the following sales would MOST likely require exclusion or significant adjustment in a residential sales comparison approach?

Accepted Answer

A sale between a parent and child at below-market price

Answer

A sale that closed 9 months ago in an active market

Answer

A sale where the buyer used FHA financing

Answer

A sale with a 60-day marketing period

Question 6

In the sales comparison approach, 'verification' of a comparable sale primarily serves to confirm what?

Accepted Answer

That the sale was arm's length and the data is accurate

Answer

That the property was listed in the MLS

Answer

That the property was inspected before closing

Answer

That the sale was recorded in the county records

Question 7

What is the purpose of calculating a 'net adjustment percentage' for a comparable sale?

Accepted Answer

To assess the overall reliability of the comparable by measuring total adjustment magnitude

Answer

To determine how much the comparable appreciated over time

Answer

To convert the adjustment to a dollar-per-square-foot figure

Answer

To determine the tax assessment ratio for the comparable