Term
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Definition
| process by which a value indication is derived in the sales comparison approach. Comparative analysis may employ quantitative or qualitative techniques, separately or combined. |
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Term
Quantitative adjustments are made before qualitative analysis is performed.
T/F |
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Definition
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Term
| What are the techniques to quantify adjustments? |
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Definition
- Data Analysis:
- Paired Data
- Grouped data
- Secondary data
- Statistical Analysis
- Graphic Analysis
- Scenario Analysis
- Cost Related Adjustments
- Cost-to-cure
- Depreciated Cost
- Capitalization of income differences
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Term
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Definition
| a quantitative technique used to identify and measure adjustments to the sale prices or rents of comparable properties; to apply this technique, sales or rental data on nearly identical properties is analyzed to isolate a single characteristic's effect on value or rent. |
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Term
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Definition
| grouping data by an independent variable such as date of sale and calculating equivalent typical values. The grouped sales are studied in pairs to identify the effect on a dependent variable such as the unit price of comparable properties |
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Term
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Definition
| method used to isolate the effect of individual variables on value |
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Term
| When is paired analysis impracitcal to use? |
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Definition
| when only a narrow sampling of sufficiently similar properties are availible |
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Term
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Definition
| pairs of sales that are identical except for the single element being measured |
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Term
| What is a common application of statistical analysis? |
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Definition
| th appraiser can develop a series of adjustment factors for different tract sizes by creating a simple linear regression model and then use the regression analysis as a means of inferring the size adjustment for properties within the range of the data. |
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Term
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Definition
| a form of modeling in which the outcomes of future events are forecast to test the probability or correlation of alternative outcomes |
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Term
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Definition
| quantitative techniques used to identify and measure adjustments to the sale prices of comparable properties; a variant of statistical analysis in which an appraiser interprets graphically displayed data visually or through curve fit analysis. |
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Term
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Definition
| adjustments are based on cost indicators such as depreciated building cost, cost to cure, or permit fees |
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Term
| When is cost realted adjustments most persuasive? |
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Definition
| markets with limited sales activity |
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Term
| Qualitative Analysis techniques |
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Definition
- Trend analysis
- Relative comparison analysis
- Ranking analysis
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Term
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Definition
| a qualitative technique used to identify and measure trends in the sale prices of comparable properties; useful when sales data on highly comparable properties is lacking, but a broad database on properties with less similar characteristics is availible. Market sensitivity is investigated vy testing variuos factors that influence sal prices. |
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Term
| How do you apply the relative comparative analysis? |
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Definition
| analyze comparable sales to determine whether the comparable properties characteristics are inferior, superior, or similar to those of the subject property |
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Term
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Definition
| a process in which an appraiser determines a probable range of values for a property by applying qualitative techniques of comparative analysis to a group of comparable sales....the array of comparables may be divided into superior, similar, and inferior. |
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Term
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Definition
| a qualitative technique in which comparable sales are ranked in descending or ascending order of desirability and each is analyzed to determine its position relative to the subject |
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Term
| The transactional adjustments are generally applied in what specific sequence? |
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Definition
- Real property rights conveyed
- Financing terms
- Conditions of sale
- Expenditures made immediately after purchase
- Market conditions
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Term
| What are expenditures that must be made immediately after purchase? |
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Definition
- Costs to cure deferred maintenance
- Costs to demolish and remove any portion of the improvements
- Costs to petition for a zoning change
- Costs to remediate environmental contamination
- Cost of obtaining entitlements
- Demolition and removal costs
- Large capital improvements
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