The subject backs a golf course; no recent sale in the neighborhood shares that trait. The best support for a view adjustment is:
Correct Answer
C) Golf-frontage pairs from a competing neighborhood, tested for fit
Why this is correct: When no direct paired sales exist in the subject's neighborhood, the appraiser should seek paired sales from a comparable neighborhood (similar price range, buyer pool) and analyze whether the extracted premium is transferable. Why the other choices are wrong: Skipping the adjustment ignores a potential value influence. A listing agent's opinion is not objective market evidence. A flat percentage from a textbook is unsupported and generic. Exam tip: When local data is lacking, look to similar markets and justify the transferability.
Why This Is the Correct Answer
Why this is correct: When no direct paired sales exist in the subject's neighborhood, the appraiser should seek paired sales from a comparable neighborhood (similar price range, buyer pool) and analyze whether the extracted premium is transferable. Why the other choices are wrong: Skipping the adjustment ignores a potential value influence. A listing agent's opinion is not objective market evidence. A flat percentage from a textbook is unsupported and generic. Exam tip: When local data is lacking, look to similar markets and justify the transferability.
More Sales Comparison Questions
Excess land differs from surplus land in that excess land:
A paired sales analysis reveals that homes with stainless-steel appliances sell for $2,100 more than identical homes with standard appliances — but only when the homes are priced below $350,000. In the subject’s neighborhood, median sale price is $410,000. What is the appraiser’s obligation regarding the $2,100 appliance adjustment?
GLA differs by 210 sq ft between subject and comparable. Paired sales support $65 per sq ft of living area. The line adjustment is:
Paired sales are drawn from transactions six months apart in a stable market. The time adjustment needed is:
The most appropriate unit of comparison is determined by:
A comparable superior to the subject in every adjusted category should produce an indication that is:
Three sales support $520,000; the borrower's purchase contract is $505,000. May the appraisal conclude above the contract price?
A comparable sold for $300,000 with the seller carrying a loan 2 points below market, a benefit worth $8,000. What is its cash-equivalent price?
Why is a foreclosure sale generally a poor comparable in a stable market?
A comparable sold 8 months ago for $250,000 in a market appreciating 6% per year. What is the time-adjusted price?
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