MULTIPLE-CHOICE QUESTIONS WITH ANSWERS RELATED TO MARKET APPROACH- SALES COMPARISON METHOD
In the sales comparison method, what is the primary purpose of selecting comparable properties?
A) To determine the seller’s motivation
B) To assess market trends and fluctuations
C) To estimate future property appreciation
D) To provide a basis for estimating the market value of the subject property
Answer: D) To provide a basis for estimating the market value of the subject property
Which of the following factors is typically NOT considered when selecting comparable properties for the sales comparison method in India?
A) Proximity to schools
B) Property color
C) Lot size
D) Architectural style
Answer: B) Property color
In the sales comparison method, what is the primary advantage of using recent sales data?
A) It provides historical context for property valuation.
B) It ensures consistency in property valuation over time.
C) It reflects current market conditions and trends.
D) It eliminates the need for adjustments.
Answer: C) It reflects current market conditions and trends.
Which of the following adjustments is typically made to account for differences in property age in the sales comparison method?
A) Market condition adjustment
B) Time adjustment
C) Age adjustment
D) Size adjustment
Answer: C) Age adjustment
In the sales comparison method, what is the primary purpose of analyzing recent sales data?
A) To determine the seller’s motivation
B) To assess market trends and fluctuations
C) To estimate future property appreciation
D) To identify distressed sales
Answer: B) To assess market trends and fluctuations
In the sales comparison method, what role does the principle of substitution play?
A) It suggests that the value of a property is based on the cost of its replacement.
B) It indicates that buyers will pay more for a property with unique features.
C) It asserts that the value of a property is influenced by the availability of substitute properties.
D) It argues that the value of a property is determined solely by its historical sale prices.
Answer: C) It asserts that the value of a property is influenced by the availability of substitute properties.
Which of the following adjustments is typically made to account for differences in property views in the sales comparison method?
A) Time adjustment
B) View adjustment
C) Location adjustment
D) Size adjustment
Answer: B) View adjustment
In the sales comparison method, what is the primary purpose of the adjustment process?
A) To decrease the sale prices to match the subject property’s value
B) To increase the sale prices to match the subject property’s value
C) To ensure that the sale prices accurately reflect the market value of the subject property
D) To eliminate the need for using comparable properties
Answer: C) To ensure that the sale prices accurately reflect the market value of the subject property
When selecting comparable properties for the sales comparison method, why is it important to consider the property’s physical characteristics?
A) To determine the seller’s motivation
B) To avoid bias in property selection
C) To assess market trends and fluctuations
D) To estimate future property appreciation
Answer: B) To avoid bias in property selection
Which of the following adjustments is typically made to account for differences in property financing in the sales comparison method?
A) Financing adjustment
B) Time adjustment
C) Market condition adjustment
D) Location adjustment
Answer: A) Financing adjustment
In the sales comparison method, what is the primary purpose of using comparable properties?
A) To determine the seller’s motivation
B) To provide a basis for estimating the market value of the subject property
C) To assess market trends and fluctuations
D) To estimate future property appreciation
Answer: B) To provide a basis for estimating the market value of the subject property
Which of the following adjustments is typically made to account for differences in property amenities in the sales comparison method?
A) Time adjustment
B) Location adjustment
C) Amenity adjustment
D) Size adjustment
Answer: C) Amenity adjustment
In the sales comparison method, what is the primary purpose of using recent sales data?
A) To determine the seller’s motivation
B) To assess market trends and fluctuations
C) To estimate future property appreciation
D) To identify distressed sales
Answer: B) To assess market trends and fluctuations
When selecting comparable properties for the sales comparison method in India, why is it important to consider the property’s lot size?
A) To determine the seller’s motivation
B) To avoid bias in property selection
C) To assess market trends and fluctuations
D) To estimate future property appreciation
Answer: D) To estimate future property appreciation
Which of the following adjustments is typically made to account for differences in property condition in the sales comparison method?
A) Market condition adjustment
B) Time adjustment
C) Physical condition adjustment
D) Location adjustment
Answer: C) Physical condition adjustment
In the sales comparison method, what is the primary purpose of reconciling the adjusted sale prices of comparable properties?
A) To determine the market value of the subject property
B) To eliminate outliers from the analysis
C) To calculate the median sale price of comparable properties
D) To estimate the replacement cost of the subject property
Answer: A) To determine the market value of the subject property
Which of the following adjustments is typically made to account for differences in property size in the sales comparison method?
A) Market condition adjustment
B) Time adjustment
C) Size adjustment
D) Location adjustment
Answer: C) Size adjustment
In the sales comparison method, what is the primary purpose of using comparable properties?
A) To determine the seller’s motivation
B) To provide a basis for estimating the market value of the subject property
C) To assess market trends and fluctuations
D) To estimate future property appreciation
Answer: B) To provide a basis for estimating the market value of the subject property
Which of the following adjustments is typically made to account for differences in property location in the sales comparison method?
A) Time adjustment
B) Location adjustment
C) Market condition adjustment
D) Physical condition adjustment
Answer: B) Location adjustment
When conducting a sales comparison analysis in India, why is it important to verify the accuracy of the data?
A) To determine the seller’s motivation
B) To avoid double counting of transactions
C) To assess market trends and fluctuations
D) To estimate future property appreciation
Answer: B) To avoid double counting of transactions
Which of the following adjustments is typically made to account for differences in property financing in the sales comparison method?
A) Financing adjustment
B) Time adjustment
C) Market condition adjustment
D) Location adjustment
Answer: A) Financing adjustment
In the sales comparison method, what is the primary purpose of using comparable properties?
A) To determine the seller’s motivation
B) To provide a basis for estimating the market value of the subject property
C) To assess market trends and fluctuations
D) To estimate future property appreciation
Answer: B) To provide a basis for estimating the market value of the subject property
Which of the following adjustments is typically made to account for differences in property amenities in the sales comparison method?
A) Time adjustment
B) Location adjustment
C) Amenity adjustment
D) Size adjustment
Answer: C) Amenity adjustment
In the sales comparison method, what is the primary purpose of using recent sales data?
A) To determine the seller’s motivation
B) To assess market trends and fluctuations
C) To estimate future property appreciation
D) To identify distressed sales
Answer: B) To assess market trends and fluctuations
When selecting comparable properties for the sales comparison method in India, why is it important to consider the property’s lot size?
A) To determine the seller’s motivation
B) To avoid bias in property selection
C) To assess market trends and fluctuations
D) To estimate future property appreciation
Answer: D) To estimate future property appreciation
Which of the following adjustments is typically made to account for differences in property condition in the sales comparison method?
A) Market condition adjustment
B) Time adjustment
C) Physical condition adjustment
D) Location adjustment
Answer: C) Physical condition adjustment
In the sales comparison method, what is the primary purpose of reconciling the adjusted sale prices of comparable properties?
A) To determine the market value of the subject property
B) To eliminate outliers from the analysis
C) To calculate the median sale price of comparable properties
D) To estimate the replacement cost of the subject property
Answer: A) To determine the market value of the subject property
Which of the following adjustments is typically made to account for differences in property size in the sales comparison method?
A) Market condition adjustment
B) Time adjustment
C) Size adjustment
D) Location adjustment
Answer: C) Size adjustment
In the sales comparison method, what is the primary purpose of using comparable properties?
A) To determine the seller’s motivation
B) To provide a basis for estimating the market value of the subject property
C) To assess market trends and fluctuations
D) To estimate future property appreciation
Answer: B) To provide a basis for estimating the market value of the subject property
Which of the following adjustments is typically made to account for differences in property location in the sales comparison method?
A) Time adjustment
B) Location adjustment
C) Market condition adjustment
D) Physical condition adjustment
Answer: B) Location adjustment
When conducting a sales comparison analysis in India, why is it important to verify the accuracy of the data?
A) To determine the seller’s motivation
B) To avoid double counting of transactions
C) To assess market trends and fluctuations
D) To estimate future property appreciation
Answer: B) To avoid double counting of transactions
Which of the following adjustments is typically made to account for differences in property financing in the sales comparison method?
A) Financing adjustment
B) Time adjustment
C) Market condition adjustment
D) Location adjustment
Answer: A) Financing adjustment
In the sales comparison method, what is the primary purpose of using comparable properties?
A) To determine the seller’s motivation
B) To provide a basis for estimating the market value of the subject property
C) To assess market trends and fluctuations
D) To estimate future property appreciation
Answer: B) To provide a basis for estimating the market value of the subject property
Which of the following adjustments is typically made to account for differences in property amenities in the sales comparison method?
A) Time adjustment
B) Location adjustment
C) Amenity adjustment
D) Size adjustment
Answer: C) Amenity adjustment
In the sales comparison method, what is the primary purpose of using recent sales data?
A) To determine the seller’s motivation
B) To assess market trends and fluctuations
C) To estimate future property appreciation
D) To identify distressed sales
Answer: B) To assess market trends and fluctuations
When selecting comparable properties for the sales comparison method in India, why is it important to consider the property’s lot size?
A) To determine the seller’s motivation
B) To avoid bias in property selection
C) To assess market trends and fluctuations
D) To estimate future property appreciation
Answer: D) To estimate future property appreciation
Which of the following adjustments is typically made to account for differences in property condition in the sales comparison method?
A) Market condition adjustment
B) Time adjustment
C) Physical condition adjustment
D) Location adjustment
Answer: C) Physical condition adjustment
In the sales comparison method, what is the primary purpose of reconciling the adjusted sale prices of comparable properties?
A) To determine the market value of the subject property
B) To eliminate outliers from the analysis
C) To calculate the median sale price of comparable properties
D) To estimate the replacement cost of the subject property
Answer: A) To determine the market value of the subject property
Which of the following adjustments is typically made to account for differences in property size in the sales comparison method?
A) Market condition adjustment
B) Time adjustment
C) Size adjustment
D) Location adjustment
Answer: C) Size adjustment
In the sales comparison method, what is the primary purpose of using comparable properties?
A) To determine the seller’s motivation
B) To provide a basis for estimating the market value of the subject property
C) To assess market trends and fluctuations
D) To estimate future property appreciation
Answer: B) To provide a basis for estimating the market value of the subject property
Which of the following adjustments is typically made to account for differences in property location in the sales comparison method?
A) Time adjustment
B) Location adjustment
C) Market condition adjustment
D) Physical condition adjustment
Answer: B) Location adjustment
When conducting a sales comparison analysis in India, why is it important to verify the accuracy of the data?
A) To determine the seller’s motivation
B) To avoid double counting of transactions
C) To assess market trends and fluctuations
D) To estimate future property appreciation
Answer: B) To avoid double counting of transactions
Which of the following adjustments is typically made to account for differences in property financing in the sales comparison method?
A) Financing adjustment
B) Time adjustment
C) Market condition adjustment
D) Location adjustment
Answer: A) Financing adjustment
In the sales comparison method, what is the primary purpose of using comparable properties?
A) To determine the seller’s motivation
B) To provide a basis for estimating the market value of the subject property
C) To assess market trends and fluctuations
D) To estimate future property appreciation
Answer: B) To provide a basis for estimating the market value of the subject property
Which of the following adjustments is typically made to account for differences in property amenities in the sales comparison method?
A) Time adjustment
B) Location adjustment
C) Amenity adjustment
D) Size adjustment
Answer: C) Amenity adjustment
In the sales comparison method, what is the primary purpose of using recent sales data?
A) To determine the seller’s motivation
B) To assess market trends and fluctuations
C) To estimate future property appreciation
D) To identify distressed sales
Answer: B) To assess market trends and fluctuations
When selecting comparable properties for the sales comparison method in India, why is it important to consider the property’s lot size?
A) To determine the seller’s motivation
B) To avoid bias in property selection
C) To assess market trends and fluctuations
D) To estimate future property appreciation
Answer: D) To estimate future property appreciation
Which of the following adjustments is typically made to account for differences in property condition in the sales comparison method?
A) Market condition adjustment
B) Time adjustment
C) Physical condition adjustment
D) Location adjustment
Answer: C) Physical condition adjustment
In the sales comparison method, what is the primary purpose of reconciling the adjusted sale prices of comparable properties?
A) To determine the market value of the subject property
B) To eliminate outliers from the analysis
C) To calculate the median sale price of comparable properties
D) To estimate the replacement cost of the subject property
Answer: A) To determine the market value of the subject property
Which of the following adjustments is typically made to account for differences in property size in the sales comparison method?
A) Market condition adjustment
B) Time adjustment
C) Size adjustment
D) Location adjustment
Answer: C) Size adjustment
