Which sale most likely requires a conditions-of-sale adjustment?
Correct Answer
D) A sale by a divorcing couple ordered to liquidate by month's end
Why this is correct: Conditions of sale adjustments account for market value differences caused by atypical motivations or circumstances of the buyer or seller. A court-ordered sale under a tight deadline creates duress, likely forcing the seller to accept a price below what could be obtained in a typical, unhurried market exposure period. Why the other choices are wrong: "A 60-day ordinary sale through the MLS" represents typical market exposure. "A sale to a buyer relocating for work on a normal timeline" involves ordinary motivation. "A sale with a standard 3% earnest deposit" is a typical contract term, not an atypical condition of sale. Exam tip: Look for signs of compulsion (estate, foreclosure, divorce, relocation under tight deadline) or unusual concessions (seller-paid buy-downs, excessive personal property included) that distort price.
Why This Is the Correct Answer
Why this is correct: Conditions of sale adjustments account for market value differences caused by atypical motivations or circumstances of the buyer or seller. A court-ordered sale under a tight deadline creates duress, likely forcing the seller to accept a price below what could be obtained in a typical, unhurried market exposure period. Why the other choices are wrong: "A 60-day ordinary sale through the MLS" represents typical market exposure. "A sale to a buyer relocating for work on a normal timeline" involves ordinary motivation. "A sale with a standard 3% earnest deposit" is a typical contract term, not an atypical condition of sale. Exam tip: Look for signs of compulsion (estate, foreclosure, divorce, relocation under tight deadline) or unusual concessions (seller-paid buy-downs, excessive personal property included) that distort price.
More sales-comparison-approach Questions
Excess land differs from surplus land in that excess land:
A subject property has a 3-car attached garage. The appraiser locates two valid paired sales: Sale 1 (with 3-car garage) sold for $512,000; Sale 2 (with 2-car garage) sold for $497,600. Both properties are otherwise identical β same age, quality, GLA, lot size, and neighborhood β and sold 5 days apart in a balanced market. The appraiser also confirms via public records and listing photos that no other functional or physical differences exist. What is the indicated contributory value of the *third* garage stall?
The most appropriate unit of comparison is determined by:
An appraiser analyzes three paired sales to isolate the effect of a fireplace. In Pair 1, the property with a fireplace sold for $12,000 more; in Pair 2, $10,500 more; and in Pair 3, $13,500 more. All pairs are highly similar and recent. The appraiser selects $12,000 as the final adjustment. Which principle best supports this selection?
A paired sales analysis yields an adjustment of β$15,000 for a property located on a busy arterial street. Later, the appraiser discovers that all three paired properties with arterial exposure also had 20% smaller lots than their non-arterial counterparts β a difference not initially controlled for. What is the most appropriate action per USPAP?
An appraiser identifies two comparable sales that are identical in all respects except that Sale #1 has a finished basement (1,200 sq ft) and sold for $432,000, while Sale #2 has an unfinished basement of the same size and sold for $408,000. Both sales occurred within three weeks of each other in a stable market. The appraiser intends to apply a per-square-foot adjustment for basement finish to the subject property, which has a 1,000 sq ft finished basement. What is the appropriate paired-sales-derived adjustment amount per square foot for a finished basement?
Three sales support $520,000; the borrower's purchase contract is $505,000. May the appraisal conclude above the contract price?
An appraiser develops a $3,200 adjustment for a fireplace based on a single paired sale. The subject has a fireplace; Comparable A does not. The appraiser applies +$3,200 to Comparable A. Later, the appraiser identifies a second pair showing a $4,600 fireplace contribution. The appraiser replaces the original adjustment with $3,900 β the simple average β and applies it to Comparable A. What is the appropriate USPAP-compliant action regarding the adjustment amount?
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?
Three comparables adjust to $412,000 (gross adj. 5%), $405,000 (gross adj. 22%), and $410,000 (gross adj. 8%). What is the best-supported value conclusion?
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Previous Question
An appraiser analyzes three paired sales to estimate an adjustment for proximity to a high-voltage transmission line. The pairs show consistent value differences: Pair 1 (1,200 ft vs. 400 ft) β $18,000 difference; Pair 2 (1,500 ft vs. 600 ft) β $21,600 difference; Pair 3 (1,800 ft vs. 300 ft) β $27,000 difference. Assuming a linear relationship between distance and value impact, what is the indicated adjustment per 100 feet of reduced distance to the line?
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A comparable in a neighborhood commanding 5% more than the subject's sold for $420,000. What is the location-adjusted price?
