A trainee appraiser finds a promising comparable in an online listing database, but the entry does not clearly state the property condition, financing terms, or whether seller concessions were involved. What is the best next step?
Correct Answer
D) Verify the key facts through a reliable source so the appraiser understands conditions of sale and concessions
Comparable information should be verified through reliable sources so the appraiser understands the conditions of sale, any financing concessions, important physical characteristics, and whether the transaction was arm’s-length. Unverified data can lead to faulty adjustments and weak support for value.
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More Valuation Market Analysis Questions
A buyer in Rochester is pre-approved for a conventional mortgage and wants to purchase a co-op apartment. What should the buyer's agent explain about financing a co-op purchase in New York?
A parcel is in a desirable retail corridor and buyers want it, but an unresolved title defect and missing legal access make it hard to close. Which element of value is most directly impaired?
When appraising co-op apartments in New York, all of the following factors must be considered due to their unique ownership structure EXCEPT:
A first-time buyer in New York City asks their agent about the difference between owning a co-op versus a condo. What is the fundamental ownership difference the agent should explain?
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Previous Question
Two otherwise similar sales suggest that buyers in a market pay about $80 per square foot for additional living area. The subject contains 1,800 square feet. A comparable sold for $460,000 and contains 1,950 square feet, with no other meaningful differences. What is the comparable’s adjusted sale price?
Next Question
An appraisal report marks neighborhood property values as stable. One comparable, however, went under contract during a brief dip in prices several months earlier, and the appraiser has support for a positive market-conditions adjustment. Is that acceptable?