When conducting a CMA, which of the following properties would be considered the BEST comparable for a 1,800 sq ft bungalow built in 1985?
Correct Answer
A) A 1,750 sq ft bungalow built in 1983, sold 2 months ago, 3 blocks away
The best comparable should be similar in style, size, age, and location, with a recent sale date. Option A matches the bungalow style, has similar square footage and age, is nearby, and was sold recently, making it the most reliable comparable despite minor size difference.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Common Mistakes to Avoid on Property Valuation Questions
More Property Valuation Questions
Which of the following is the most appropriate valuation approach for a single-family residential property in a well-established neighborhood with many recent sales?
What is the primary purpose of a Comparative Market Analysis (CMA) in real estate practice?
Which factor would have the LEAST direct impact on a residential property's market value?
In the cost approach to valuation, what does the term 'depreciation' refer to?
An appraiser is valuing a 15-unit apartment building. The building generates $180,000 in annual rental income with operating expenses of $60,000. If the capitalization rate for similar properties is 8%, what is the estimated value using the income approach?
- → Which of the following scenarios would most likely result in functional obsolescence in a residential property?
- → In Ontario, what is the key difference between an appraisal and a Comparative Market Analysis (CMA)?
- → An appraiser is using the cost approach to value a custom-built heritage home. The reproduction cost new is estimated at $850,000, the land value is $300,000, and total depreciation is calculated at $180,000. What is the property's estimated value using this approach?
- → A commercial property appraiser is reconciling three different approaches that yielded the following values: Direct Comparison $2,100,000, Cost Approach $2,400,000, Income Approach $1,950,000. Given that this is an income-producing office building in a market with limited sales but strong rental data, which approach should receive the greatest weight in the final value estimate?
- → Which appraisal method is most appropriate when valuing a unique heritage property with no comparable recent sales?
- → In conducting a Comparative Market Analysis (CMA), which property characteristic typically has the greatest impact on value adjustments?
- → When using the income approach to value a rental property, what does the capitalization rate represent?
- → A real estate agent is preparing a CMA for a 2,000 square foot bungalow. A comparable property sold for $450,000 but has an additional 300 square feet. If the adjustment is $150 per square foot, what is the adjusted sale price of the comparable?
- → Which factor would most likely cause a property's value to decrease in a market analysis?
- → In the cost approach, what does 'functional obsolescence' refer to?
People Also Study
Real Property Law
60 questions
Contracts & Agreements
60 questions
Agency & Professional Ethics
60 questions
Mortgage & Real Estate Finance
60 questions
