How many distinct approaches do we want to consider when appraising real property? (4 Points) The result of the appraisal process should be seen as the objectively true market value of the real estate property. (2 Points) Which of the following is not a necessary step in the process of a sales comparison approach to estimate the market value? (4 Points) O Reconciling the individual estimates for the different comparisons. O Pretending to be a buyer to ask other real estate owners for which price they would be willing to sell their property. O Identify other properties with comparable characteristics to the real estate property that should be evaluated. 0 Adjust the value of comparisons for their material differences to the property of interest. Consider the following situation: One house was sold for the last time 1.5 years ago. At that time, it was sold for $500,000. It sold again today for a total price of $590,000. What is the monthly rate of increase? (8 Points) Your answer The order in which adjustments are performed does not inuence the nal estimate. (2 Points) Which statement below describes the difference between the reconstruction and the replacement approach to estimate costs for the cost estimation approach to real estate evaluation in the most accurate way? (4 Points) 0 The replacement approach can be calculated, whereas the reproduction approach is purely based on guessing. O The reproduction approach is more appropriate when appraising urban real estate property, whereas the replacement approach is primarily used in rural areas. The replacement approach calculates the cost for a building that has the same utility 0 but might look different, whereas the reproduction approach calculates the cost for a building that is exactly equal to the appraised one. The reproduction approach is easier because to implement because you only need 0 to update the costs it originally took to construct the building and adjust them for ination, whereas the replacement approach is based on current costs. When you look at a table that details all adjustments in the sales comparison approach and you see the expression "(5,000)" you can conclude that the value of the comparison has to be reduced by $5,000. (2 Points) Which of the following is not a reason to adjust the observed price of a comparison? (4 Points) O Difference in the age of the structure. 0 The comparison has a pool, whereas the appraised property does not have a pool. 0 The comparison real estate was sold 10 days ago. 0 The appraised real estate is aesthetically more pleasing to the eye of the average buyer than the comparison. How do you estimate the appraisal in the sales comparison approach if you have more than one comparison? (4 Points) 0 You have to take the unweighted average of all estimates, it is only fair that each comparison should be deemed equally important. You take the lowest price to make sure that you do not overestimate the value of the appraised property. could be considered tax fraud. You take a weighted average, some estimates could be better approximations than 0 You take the highest price, otherwise property taxes might be underestimated, which 0 others. You indicate the complete range. When conducting a sales price comparison approach, it is recommended to only include sales that can be characterized as arms-length transactions. (2 Points)