Deck 9: Analyzing and Adjusting Comparable Sales

Question 1

Units of comparison are dollar or percentage amounts that are added to, or subtracted from, the comparable sales prices.

Answer 1

False

Question 2

A comparable sale should be adjusted for the terms of sale when the sale involves unique financing that offers an advantage to the buyer.

Answer 2

True

Question 3

If the 1.800 square-foot houses in the subject neighborhood sell typically at $200 per square foot, you would expect that a 1.400 square-foot house would sell for under $200 per square foot.

Answer 3

False

Question 4

Variable units of comparison can often be effectively analyzed by graphing the sales.

Question 5

To adjust the sales price of a comparable sale with a 10% better location, you should add 10% to the price.

Question 6

An example of an economic unit of comparison in the appraisal of land is the price per buildable apartment or dwelling unit.

Question 7

Two or more percentage adjustments should theoretically be multiplied together (instead of added) when they are dependent upon each other.

Question 8

Using "matched pairs" of comparable sales is considered an indirect method of estimating sales adjustments.

Question 9

Sales adjustments should be market-related.

Question 10

The four elements of comparison used in the sales comparison approach include the terms and time of sale, as well as location and physical elements about the property.