listing price, not the final sale price. Many times the sale

Chapter 2 - CMA and Market Data Approach Flashcards A licensee should keep in mind that the information on

pending sales is not as reliable as on sold homes because:

(1) The price the licensee sees on the pending home is the listing price, not the final sale price.(2) Many times the sale price is somewhat lower than the listing price(3) the sale is not complete until it's complete what is the last step in the appraisal approach to perform a weighted analysis of the indicated values of each comparable.The appraiser, in other words, must identify which comparable values are more indicative of the subject and which are less indicative.what are some considerations that influence a home sale(1) Possession date - Will it be immediate or will there be a delay for some reason?(2) Contingent sale - Do the buyers have a property to sell before they can complete this sale?(3) Financing terms - Are interest rates good? Can the mortgage be assumed? Can the sellers finance all or part of the loan for the buyers?what approach is deemed to be the most reliable for appraisals of single-family homes sales comparison disadvantages of sales comparison method if suitable comparable properties are not available, this method clearly cannot be used.Which of the following consideration is the most subjective and when doing a residential market analysis?A.) Buyer appealB.) DrawbacksC.) Market positionD.) Recommended terms A.) Buyer appeal What is the final step of the appraisal process?A.) Estimate the current sale value compared to the market.B.) Estimate the likelihood of the property selling within the listing period.C.) Estimate the cost to the buyer of buying the property, including closing fees, mortgage rates, etc.D.) Estimate the combined worth of the land and the improvements.D.) Estimate the combined worth of the land and the improvements.what are the 3 approaches an appraiser uses to derive indications of value.(1) sales comparison(2) cost(3)income capitalization what is the sales comparison approachbased on the principle of substitution - which says that a buyer will not pay more for the subject property than he or she would pay for a property that is similar in characteristics and amenities.Since no two properties are exactly alike, the appraiser must compare the similarities and differences among the properties and then make adjustments to the sales prices of the comparable properties to account for the differences.Which of the following is NOT indicative of the best approach methods to an appraisal?A.) Nature of the client's

propertyB.) Available dataC.) The amount of the appraiser's feeD.) The client's needs C.) The amount of the appraiser's fee

what are assetsMost buyers want to purchase property that is in good condition, is in a desirable location and has a good traffic flow.For some buyers, a cul-de-sac location is more desirable because of the low traffic patterns.According to law, a CMA may never be referred to as a what?A.) A referenceB.) An appraisalC.) An analysisD.) A price point B.) An appraisal what is buyer appealSome homes appear larger than other homes from the outside, but actually have the same amount of square feet inside.Homes that are set further back from the street may be more appealing to some buyers, while homes with professional-looking landscaping may be more appealing to other buyers.what is at the very heart of the valuation processcollection and data analysis real estate sold through the following methods should not be used in sales comparison (1) Bankruptcy.*(2) Foreclosure.*(3) From one family member to another.(4) Government.In regards to the considerations a licensee must take into consideration when compiling a CMA, what is "market position"?A.) The number of similar properties for sale in the same market, at the same timeB.) The ranking of the subject property's type among similar properties being soldC.) The amount of focus the broker will apply in trying to sell the subject property compared to other listings the broker hasD.) The number of days the property has been on the market since the first day of listing A.) The number of similar properties for sale in the same market, at the same time Ian Prazer is assessing Ryan Seller's property using the sales comparison method. Which of the following statements is FALSE?A.) Ian's first step will be to estimate the potential gross income of Ryan's property.B.) Ian will need to assign a monetary value to each comparable category.C.) Ryan's home is being appraised using the most reliable valuation approach.D.) If comparable properties have features that are better than Ryan's home, Ian will use a negative value adjustment.A.) Ian's first step will be to estimate the potential gross income of Ryan's property.what is the first step in the appraisaldefine the appraisal problem: leads into the appraiser's determination of the scope of work that will be needed to complete the assignment.The test of highest and best use is applied to an improved property both as ______ and as ______.A.) rented, soldB.) listed, soldC.) land only, improvements onlyD.)improved, vacant D.)improved, vacant Typically, a list of recently sold properties should include information on all of the following EXCEPT for what?A.) The number of days the property was on the marketB.) The original listing priceC.) The eventual selling priceD.) The

name of the property's buyer D.) The name of the property's buyer the three main appraisal methods(1) Sales comparison - a valuation method based on the substitution principle. It involves evaluating the subject property against comparable ones that have lately sold.(2)