Which of the following is of least interest to an appraiser?
Question & Answer
Review the question and all answer choices
Value in exchange.
Value in exchange — the price a property would command in the open market — is a foundational concept in appraisal and is directly relevant to the appraiser's work; it is the basis of the sales comparison approach and the definition of market value itself.
The original cost of the property.
While original cost is less important than current market data, it is not entirely irrelevant — it can serve as a starting point in the cost approach (depreciated cost analysis) and may provide context, so it is more useful to an appraiser than the abstract notion of 'objective value.'
The objective value of the property.
The sales price received for comparable properties.
Sales prices of comparable properties are among the most important data points an appraiser uses, forming the entire foundation of the sales comparison approach, which is the primary valuation method for residential properties.
Why is this correct?
Answer C — 'the objective value of the property' — is of least interest to an appraiser because it is a vague, circular concept: appraisers already produce an objective value estimate as their core work product, so 'objective value' as a separate input adds nothing to the appraisal process. The question is testing whether students understand that appraisers focus on specific, measurable market inputs (comparable sales, income data, cost data) rather than abstract value characterizations.
Continue Learning
Explore this topic in different formats
More Real Estate Math Videos
Continue learning with related video lessons
The return of land to the grantor or grant- or’s heirs when the grant is over is BEST described as
2:48 • 0 views
A property sells for $325,000. If the commission is 6%, split equally between listing and selling brokers, what does each broker receive?
2:42 • 0 views
Property taxes on a Texas home are $6,000 per year. The sale closes on April 1. How much does the seller owe for prorated taxes?
2:56 • 0 views
A property is assessed at $250,000. The tax rate is $2.50 per $100. What is the annual tax?
2:50 • 0 views
Any individual may contact the Real Estate Commissioner to:
3:00 • 0 views
Ready to Ace Your Real Estate Exam?
Access 2,000+ free video lessons covering all 11 exam topics.