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
A unit of comparison such as price per square foot is most useful when:
Answer: Comparing properties that differ in size
Price per square foot normalizes differences in size among comparable properties.
Which sequence of adjustments is generally applied first in the market approach?
Answer: Transactional adjustments (financing, conditions, time)
Transactional adjustments are applied before property-characteristic adjustments.
An over-improvement that the market does not fully reward is a form of:
Answer: Functional obsolescence reflected in market data
Features the market won't pay full price for reflect functional obsolescence.
If reliable comparable sales are scarce, the appraiser may appropriately:
Answer: Expand the search area or time frame and disclose it
Widening parameters with disclosure is acceptable when local recent sales are limited.
Net adjustment refers to the:
Answer: Sum of all positive and negative adjustments combined
Net adjustment is the combined effect of all adjustments, positive and negative.
Gross adjustment is monitored because a high gross percentage suggests the comparable is:
Answer: Less similar and possibly less reliable
Large gross adjustments indicate the comparable differs substantially from the subject.
Which is the best source for verifying comparable sale data?
Answer: A party to the transaction or public records
Sale data should be verified through parties to the deal or reliable public records.