Real Estate Appraisal

QUESTION 1

1. Which of the following is true regarding the valuation of land?

   		Income capitalization is the most appropriate way to value a fee simple interest in a residential site.
   		If land sales are readily available, allocation is the most appropriate method for valuing a site.
   		The sales comparison approach is preferable for estimating the market value of a site.
   		The extraction method considers land valuetototal property value ratios.

1 points

QUESTION 2

1. When developing the Sales Comparison Approach, dollar or percentage adjustments for elements of comparison are made to the

   		Sale price of the subject property
   		Listing price of the subject property
   		Sale price of a comparable property
   		Assessed value of a comparable property

1 points

QUESTION 3

1. The preferred sequence of adjustments used in the Sales Comparison Approach is

   		Property rights, conditions of sale, expenditures after sale, financing, market conditions, and physical attributes
   		Property conditions, financing, physical conditions, expenditures after sale, market conditions, and physical attributes
   		Property rights, conditions of sale, physical attributes, expenditures after sale, financing, and market conditions
   		Property rights, financing, conditions of sale, expenditures after purchase, market conditions, and physical attributes

1 points

QUESTION 4

1. The subject property was built in 1995, and a comparable property was built in 2016. Assuming that new buildings are preferred over old ones, the adjustment for age of improvement in this case would be

   		Positive
   		Negative
   		No adjustment
   		Sometimes negative but sometimes positive, depending on the client