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10 Cards in this Set
- Front
- Back
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The value of an item comes primarily from the: |
Value is created by people. Our perceptions and attitudes do more to determine the value of an item than the characteristics of the item itself |
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A competitive market analysis (CMA) is an effective way to estimate value because: |
Competitive market analysis is a modified form of the sales comparison method of appraisal. It is based on the assumption that a buyer will not want to pay more for a property than she could pay for a similar comparable property |
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Which of the following is true about neighborhood characteristics? |
Neighborhood characteristics set both the upper and lower limits of a property's value |
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What kind of topography is considered most desirable for a residential neighborhood? |
Mildly rolling terrain is usually considered preferable, both as a neighborhood characteristics and for the property site itself |
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A bathroom with a wash basin and toilet, but no shower or bathtub, is a: |
A bathroom with only a wash basin and a toilet is considered a half bath |
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Which of the following is a common design deficiency? |
It's considered a design deficiency when two bathrooms share a wall without a bathroom or closets between them to provide soundproofing |
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Which of the following is an example of "normal market conditions? |
A sale under normal market conditions is one in which the parties were unrelated, neither party was acting under unusual pressure, both parties acted prudently and knowledgeably and in their own best interests, and property was exposed on the open market for a reasonable length of time |
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In a CMA, which of the following elements may make it necessary to adjust the prices of the comparables? |
If a comparable did not sell recently, it may be necessary to make an adjustment to take into account changes in the market since the date of sale |
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To prepare a CMA for your seller's property, you choose three properties as comparables. You make all the necessay adjustments to reflect how the comparables differ from the subject property. Comparable A has an adjusted value of $311,000. Comparable B has an adjusted value of $327,500. Comparable C has an adjusted value of $314,000. How do you arrive at an estimate of the value of the subject property? |
You have to evaluate the reliability of each comparable to estimate the market value of the subject property. the comparables that are most like the subject property offer the most reliable indication of market value |
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To have the best chance of succeeding with a request for reconsideration of value, you should use: |
To persuade the lender to accept your estimate of value over the appraiser's, you need to select comparable sales that are at least as similar to the subject property as the appraiser's comparables |
