Property Valuation Flashcards

In a CMA, a comparable sold for $410,000 and has a $15,000 pool the subject lacks. What is the adjusted comparable price?

Answer: $395,000

When the comparable is superior, subtract the feature's value from the comparable's price.

Which comparable is generally the MOST reliable indicator of current market value for a seller's listing?

Answer: A recent closed sale with similar features nearby

Recent closed sales reflect prices buyers actually paid, making them the strongest evidence of value.

There are 120 active listings and 40 homes sold per month. What is the months' supply of inventory?

Answer: 3 months

Divide active inventory by monthly sales: 120 ÷ 40 = 3 months.

What do expired listings in a CMA most often reveal to a seller?

Answer: The ceiling price buyers would not pay

Expired listings show prices that failed to attract buyers, signaling overpricing in that range.

A home next to a newly built highway loses value. This is an example of:

Answer: External (economic) obsolescence

External obsolescence comes from factors outside the property boundaries and is generally incurable by the owner.

Which valuation approach do appraisers typically weigh most heavily for an owner-occupied single-family home?

Answer: Sales comparison approach

Single-family homes are valued mainly by what similar homes have sold for, the sales comparison approach.

A seller insists on listing 15% above the CMA's suggested range. What is the most likely result?

Answer: Longer days on market and possible price reductions

Overpriced listings tend to sit longer, become stale, and often sell for less after reductions.