SAEE Market Approach Application 3

Question 1

Which of the following is an example of a quantitative adjustment in the market approach?

Accepted Answer

Adding a dollar amount for an extra bathroom

Answer

Quantitative adjustments assign specific dollar or percentage amounts to differences.

Question 2

The paired sales (matched pairs) technique is used primarily to:

Accepted Answer

Isolate the value contribution of a single feature

Answer

Paired sales analysis compares two otherwise similar sales to measure one differing feature's value.

Question 3

If the subject property is superior to a comparable in a given feature, the appraiser should:

Accepted Answer

Add value to the comparable's sale price

Answer

When the subject is superior, the comparable's price is adjusted upward to match.

Question 4

Which sale condition would require a 'conditions of sale' adjustment?

Accepted Answer

A seller under duress accepting a below-market price

Answer

Motivated or distressed sellers create atypical conditions requiring adjustment.

Question 5

In the market approach, the most reliable comparable is generally one that:

Accepted Answer

Requires the fewest and smallest adjustments

Answer

The comparable needing the least adjustment is usually the most reliable indicator.

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