What substantive role can appropriate comparable photographs serve in an appraisal report?
Correct Answer
B) Help readers assess visible characteristics alongside the reported analysis
Suitable photos help intended users understand visible features and compare descriptions, subject to their source, date and coverage. They do not establish every transaction fact, hidden condition or that the appraiser personally visited. Applicable forms or programs may require particular exhibits; there is no universal all-appraisals travel-proof rule.
Why This Is the Correct Answer
Option B is correct because suitable photographs help intended users understand visible features of the comparables and compare them with the reported analysis. Many readers may not personally view the properties, so photos help them follow the appraiser's reasoning.
Why the Other Options Are Wrong
Option A: Increase page count independently of analytical relevance
Option A says photos serve to increase page count regardless of analytical relevance. Photos are included to help readers understand the properties, not to add bulk.
Option C: Verify the sale prices and financing terms reported for each comparable
Option C says photos verify the sale prices and financing terms. A photo shows visible features only; prices and terms are verified through sources such as public records, MLS data or parties to the transaction.
Option D: Prove that the appraiser personally traveled to each property
Option D says photos prove the appraiser personally traveled to each property. Photos may come from other sources such as MLS listings, so they do not by themselves prove a personal visit.
Photos show, sources prove
Photos show what can be seen; transaction facts are proven by verification sources.
How to use: Use this to sort out what a report exhibit can and cannot establish.
Exam Tip
Choose the answer that ties photos to helping readers understand visible characteristics, and avoid answers that claim photos prove transaction facts.
Common Mistakes to Avoid
- -Treating photos as verification of sale price or terms
- -Assuming a photo proves the appraiser inspected the comparable in person
- -Including photos without regard to their relevance or date
Concept Deep Dive
Analysis
This question tests the purpose of comparable photographs in a report. Photos help readers see visible characteristics and relate them to the appraiser's descriptions, but they cannot verify transaction details or prove the appraiser's travel.
Background Knowledge
Report exhibits such as photographs, maps and sketches help intended users understand the properties and the analysis. Their usefulness depends on their source, date and coverage, and specific forms or programs may set their own photo requirements.
Real-World Application
A reviewer in another state reads an appraisal of a lakeside cabin. The comparable photos let the reviewer see that one comparable has a newer exterior, which matches the appraiser's condition adjustment described in the grid.
More Sales Comparison Questions
Supported adjustments are: non-market financing $10,000, GLA $36/sf, garage $3,500 per car, pool/spa $12,500. A comparable identical to the 2,800 sf subject sold for $267,000 with non-market financing. What is its adjusted price?
Using GLA $36/sf and non-market financing $10,000: a 3,100 sf comparable sold for $277,000 with non-market financing; the subject has 2,800 sf. Bath count differences are not adjusted. What is the adjusted price?
Using garage $3,500 per car and pool/spa $12,500: a comparable with a 2-car garage and a pool/spa sold for $268,000. The subject has a 3-car garage and no pool. What is the adjusted price?
Using GLA $36/sf, garage $3,500 per car and pool/spa $12,500: a 2,600 sf comparable with a 2-car garage and a pool/spa sold for $264,000. The subject is 2,800 sf with a 3-car garage and no pool. What is the adjusted price?
In a neighborhood with declining values and marketing times over six months, what must Fannie Mae lenders confirm about the sales comparison analysis?
A house is a 4,000 square foot home in an area of 2,000 square foot homes. How must the appraiser treat this over-improvement in the sales comparison grid?
According to the Interagency Appraisal and Evaluation Guidelines, which items should an appraisal’s market conditions discussion include?
A comparable listed at $420,000 and sold for $399,000. What sale-to-list price ratio (sale price ÷ list price) does this indicate?
An appraiser wants to describe the neighborhood boundaries in a Fannie Mae report. Which approach is acceptable?
Which of these is listed by Fannie Mae as a sales or financing concession?
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