The indicated value of a comparable property is based on the …........... price. quizlet

A comparable property sold six months ago for $150,000. The adjustments for the various elements of comparison have been calculated as follows:
Location: −5 percent.
Market conditions: +8 percent.
Physical characteristics: +$12,500.
Financing terms: −$2,600.
Conditions of sale: None.
Property rights conveyed: None.
Use: None.
Nonrealty items: −$3,000.
Making the adjustments in the order suggested in Exhibit 7-6, what is the comparable property's final adjusted sale price?
a) $160,732.
b) $164,400.
c) $169,600.
d) $162,500.
e) $163,232.

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• What is the most accurate definition of market value for a property quizlet?
• What is comparable approach?
• When conducting a CMA The listing price is typically based on which of the following?
• What shows the location of the subject property and the comparable sales?

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Assume you have been hired to appraise a local hospital. Your best estimate of the reproduction (or replacement) cost of the building is $3,700,000. However, upon evaluating the use of land in the local area, you have deemed the value of the site to be worth an additional $800,000. If the building has depreciated by $500,000 over its lifetime and there are no further depreciation losses due to external or functional obsolescence, what is the indicated value of the hospital using the cost approach?

$2,400,000
$3,700,000
$4,000,000
$4,500,000

If all appraisal methods are appropriate for use in valuing a particular property, there is a clear order of preference that real estate professionals adhere to. Which of the following depicts the preferred order, with the most preferable approach being listed first and the least preferable listed last?

sales comparison approach, cost approach, income approach
income approach, sales comparison approach, cost approach
cost approach, income approach, sales comparison approach
sales comparison approach, income approach, cost approach

Let's assume that we are about to appraise a house using the cost approach. The home was originally constructed in the early 1900s and is one of the last of its kind in this area. The cost of constructing an exact replica of this residence is estimated to be $350,000. On our trip to the actual property, we notice that this is the only residential unit located on this particular road. Based on the current usage of adjacent real estate, we estimate that the property would be worth an additional $25,000 in its highest and best use. However, due to the dramatic shift in the perceived safety of the neighborhood, values of any remaining residential properties in the area have fallen by $20,000. Due to the home's age, we also notice that there has been a significant amount of physical deterioration to the building, amounting to an estimate of $50,000 in lost value. Since the home was built over 100 years ago, the floor plan is quite obsolete relative to current preferences. This has a detrimental effect on the value of the property that is estimated to be approximately $15,000. Given this information, determine the appraised value of the home using the cost approach.

$265,000
$290,000
$350,000
$460,000

Suppose that an appraiser has come to the following conclusions in evaluating the subject property. Due to the dramatic shift in the perceived safety of the neighborhood, values of any residential properties in the area of the subject property have fallen by $10,000, on average. Due to the subject property's age, physical deterioration to the building accounts for an estimate of $50,000 in lost value. An evaluation of the floor plan reveals that it is quite obsolete relative to current homebuyer preferences. This has a detrimental effect on the value of the property that is estimated to be approximately $15,000. Based on your understanding of adjustments related to accrued depreciation, which of the following pertains to the adjustment for external obsolescence?

$10,000
$15,000
$50,000
$75,000

Sets found in the same folder

What is the most accurate definition of market value for a property quizlet?

How is market value most commonly defined. An opinion of the price that a willing seller and willing buyer would probably agree on for a property at a given time.

What is comparable approach?

What Is the Comparables Approach? The comparables approach to equity valuation relies on similar companies and their operating performance. Using financial information of other companies, you can analyze how a company compares to competitors and peers within the same sector.

When conducting a CMA The listing price is typically based on which of the following?

A CMA generally compares a home's location, size, age, style, materials, and condition against similar homes sold within the last six months to arrive at an estimated price.

What shows the location of the subject property and the comparable sales?

Understanding the Sales Comparison Approach (SCA) Professionals use similar properties that were recently sold within a short distance of the subject property—usually in the same neighborhood—that share similar characteristics as a comparison. The SCA is used as the backbone for the comparative market analysis (CMA).

What is the most accurate definition of market value for a property quizlet?

What is comparable approach?

What shows the location of the subject property and the comparable sales?

What are the four elements of comparison used in the sales comparison approach?