An appraiser describing a market area should address:
Correct Answer
B) Boundaries, land uses, price ranges and trends
Boundaries, land uses, price ranges and supported trends provide broad market context. Other information can be relevant if it affects the subject’s competition or demand, but a property-owner list or every nearby listing history alone does not supply that overall analysis.
Why This Is the Correct Answer
Boundaries, land uses, price ranges and supported trends provide broad market context. Other information can be relevant if it affects the subject’s competition or demand, but a property-owner list or every nearby listing history alone does not supply that overall analysis.
More Market Questions
In market area analysis, what characteristic distinguishes a district from a neighborhood?
Under USPAP Standards Rule 1-3(a), which item must an appraiser identify and analyze when necessary for credible results in a market value assignment?
How does the Fannie Mae Selling Guide define a neighborhood?
Several homes in a neighborhood are vacant and boarded up. Which market force does Fannie Mae classify this as?
Infrastructure investment such as a new interchange typically affects nearby land by:
A city raises property tax rates and tightens building regulations. Which market force does Fannie Mae classify these as?
An appraiser believes, without market evidence, that a nearby group home lowers values. What does Fannie Mae require?
Which three categories are used to report the supply of properties in a Fannie Mae neighborhood section?
An appraiser is asked for a retrospective value opinion as of three years ago. When must the appraiser meet the Competency Rule?
Can mixed land uses in a residential neighborhood ever enhance home values, according to Fannie Mae?
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Previous Question
An eight-unit apartment building was built legally, but the site has since been rezoned to allow at most four units; the building may remain as a nonconforming use. It is worth $1,300,000 as improved, while the land as though vacant under current zoning is worth $420,000. Which statement about its highest and best use is correct?
Next Question
A subdivision consists of similar single-story ranch homes. A geodesic dome home of the same size, age and quality sells for noticeably less than the ranch homes and takes longer to sell. Market data show buyers here favor the prevailing style. Which principle best explains the dome home's lower price?