EstatePass
appraisal-statistical-methodsmedium

An appraiser finds the recorded living area differs from the assessor's record on several comparables. What should follow?

Correct Answer

D) Measuring or verifying before relying on either

Why this is correct: Living area is a critical factor in residential appraisal, often driving the largest adjustments. Assessment records are compiled for tax purposes using varying conventions and are not authoritative for appraisal measurement. Therefore, the appraiser must independently verify measurements to ensure accuracy before relying on any source. Why the other choices are wrong: Adopting the assessor's figures for consistency ignores potential errors in tax records. Using whichever figure is larger in each case introduces bias and lacks professional judgment. Excluding all affected sales from the analysis unnecessarily reduces the sample size and may compromise the appraisal. Exam tip: Always verify key data like living area from reliable sources or direct measurement; never assume recorded data is accurate.

Answer Options
A
Adopting the assessor's figures for consistency
B
Using whichever figure is larger in each case
C
Excluding all affected sales from the analysis
D
Measuring or verifying before relying on either

Why This Is the Correct Answer

Why this is correct: Living area is a critical factor in residential appraisal, often driving the largest adjustments. Assessment records are compiled for tax purposes using varying conventions and are not authoritative for appraisal measurement. Therefore, the appraiser must independently verify measurements to ensure accuracy before relying on any source. Why the other choices are wrong: Adopting the assessor's figures for consistency ignores potential errors in tax records. Using whichever figure is larger in each case introduces bias and lacks professional judgment. Excluding all affected sales from the analysis unnecessarily reduces the sample size and may compromise the appraisal. Exam tip: Always verify key data like living area from reliable sources or direct measurement; never assume recorded data is accurate.

Was this explanation helpful?

More appraisal-statistical-methods Questions

A price index rises from 100 to 121 over two years. What compound annual rate does this represent?

A sample of four sales drawn from a market with 200 annual transactions is:

A set of comparable sales has a mean of $250,000 and a standard deviation of $20,000. What is the coefficient of variation?

A property sold for $400,000 and resold three years later for $463,050 with no physical change. What compound annual rate does this indicate?

An appraiser includes both 'total room count' and 'bedroom count' as independent variables in a regression model estimating single-family home sale prices. The variance inflation factor (VIF) for 'bedroom count' is calculated as 12.3. What is the most appropriate appraisal action based on this result?

An appraiser runs a regression of sale price on GLA, age, and a binary variable for 'renovated' (1 = yes, 0 = no). The estimated coefficient for 'renovated' is $18,400 with a standard error of $6,200 and a t-statistic of 2.97. Assuming a two-tailed test at Ξ± = 0.05 and 42 degrees of freedom, what conclusion is supported regarding the market's recognition of renovations?

To validate the functional form of a regression model used for adjustments, an appraiser plots residuals against predicted values and observes a clear inverted-U pattern. What does this pattern indicate, and what is the most defensible corrective action?

A histogram of neighborhood sale prices shows two distinct peaks. What does this most likely mean?

What does it mean to validate a regression model?

An appraiser includes months elapsed since each sale as a variable in a price model. What is this intended to capture?

People Also Study

Practice More Appraiser Questions

Access all practice questions with progress tracking and adaptive difficulty to pass your Appraiser exam.

Start Practicing