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Sample Test Question

The sales comparison approach would be best used for:

  • Valuing an apartment complex

    Votes: 2 18.2%
  • Vacant land valuation

    Votes: 7 63.6%
  • Pricing newly constructed homes

    Votes: 2 18.2%

  • Total voters
    11
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Jeff Horton

Thread Starter
Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
I am studying for the State Exam and ran into a sample question that the answer surprised me. Just for fun I decided to try the poll feature and see how everyone else answered this question. Just curious to see how you would answer. :wink:
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
The DESIRED answer is Vacant Land Valuation.

The CORRECT answer is all of the above.

You would use the Sales Comparison Approach:

In determining the site values that go with the Cost Approach of the new home as well as the new home itself.

In determining the value of a vacant lot.

In determining the value of an Apartment property

They're trying to imply that you would rely mostly on the Cost Approach for the new home, the Sales Comparison for the vacant lot, and the Income Approach for the apartment. As we all know, however, there are market segments where there are sufficient sales data to support a valid Sales Comparison Approach for all three property types.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
SHHH, you just gave the answer out. Now the state will have to find a new ambiguous question.
 

Will Granger

Sophomore Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
The N. C. state test had this question:
What is an example of real property:
1. A house and lot
2. Gas water heater
3. Fee simple estate
4. Refrigerator
I chose #3. I was taught that real property is the rights in real estate. I still don't know if I got that one right or not. They, the gubbumunt, may have a different take on real estate. 8O
 
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