Market Approach Application Flashcards
7 cards from real SAEE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Market Approach Application flashcards as text
Which of the following is an example of a quantitative adjustment in the market approach?
Answer: Adding a dollar amount for an extra bathroom
Quantitative adjustments assign specific dollar or percentage amounts to differences.
The paired sales (matched pairs) technique is used primarily to:
Answer: Isolate the value contribution of a single feature
Paired sales analysis compares two otherwise similar sales to measure one differing feature's value.
If the subject property is superior to a comparable in a given feature, the appraiser should:
Answer: Add value to the comparable's sale price
When the subject is superior, the comparable's price is adjusted upward to match.
Which sale condition would require a 'conditions of sale' adjustment?
Answer: A seller under duress accepting a below-market price
Motivated or distressed sellers create atypical conditions requiring adjustment.
In the market approach, the most reliable comparable is generally one that:
Answer: Requires the fewest and smallest adjustments
The comparable needing the least adjustment is usually the most reliable indicator.
Financing concessions such as a seller paying the buyer's closing costs should be:
Answer: Adjusted to reflect a cash-equivalent price
Concessions can inflate the price, so an adjustment converts it to a cash-equivalent value.
When adjustments are expressed as percentages, the appraiser typically applies them to the comparable's:
Answer: Unadjusted sale price
Percentage adjustments are calculated against the comparable's sale price.