Deck 8: The Sales Comparison Approach

Question 1

A sale between the property owner and a tenant can be assumed to be an open market transaction.

Answer 1

False

Question 2

Data resources on the internet provide general data on the economy and regulatory information of use to the appraiser.

Answer 2

True

Question 3

A neighborhood sales study finds selling prices of $150,000, $157,500, $159,000, $162,000, and $164,000 for homes similar to the subject property. The median price of this sample is $158,500.

Answer 3

False

Question 4

The first step in the sales comparison approach is to research comparable sales.

Question 5

Even though listings and offers may be available, they are of no significant use to an appraiser.

Question 6

In the analysis of sales transaction data, the actual date that the sale price was agreed upon is the theoretical date of sale.

Question 7

The sales comparison approach has no statistical connections.

Question 8

USPAP requires that any listing or sale of the subject property around the date of value be considered in the appraisal.

Question 9

The sales comparison approach is based on the principle of substitution.

Question 10

Sales data published and/or available on line for the use of subscribing appraisers is often generated by cooperating lenders and appraisers.