List the order of adjustments in the sales comparison approach. Which method of determining adjustments in the sales comparison approach cannot be used to determine market conditio... List the order of adjustments in the sales comparison approach. Which method of determining adjustments in the sales comparison approach cannot be used to determine market conditions? The first step in the sales comparison approach is to define the appraisal problem. List the five items that need to be included in defining the appraisal problem. A cardinal rule in the sales comparison approach holds that all adjustments are made to the property and never to the property. The Principle of states that market value is never constant because physical, governmental, social, and economic forces are at work, affecting the property. When the four forces are in balance, the market achieves a temporary state of . analysis, which is used primarily in single-property appraisal, requires the sale properties to be identical in all attributes except the one being measured.
Understand the Problem
The question is asking for specific details about the sales comparison approach in real property appraisal, including adjustment order, methods of determining market conditions, and principles relevant to appraisal problems.
Answer
Order: property rights, financing, conditions of sale, market conditions, and physical characteristics. Paired sales analysis can't determine market conditions. Define appraisal problem by property, rights, scope, purpose, and date.
The five steps in the sales comparison approach are: property rights conveyed, financing terms, conditions of sale, market conditions, and physical characteristics. Paired sales analysis cannot determine market conditions. Define the appraisal problem by identifying the property, its rights, scope of work, purpose of the appraisal, and date. Adjustments apply to the comparable property. The Principle of Change states market value isn't constant. When forces are balanced, equilibrium is achieved. Paired sales analysis is used in single-property appraisals.
Answer for screen readers
The five steps in the sales comparison approach are: property rights conveyed, financing terms, conditions of sale, market conditions, and physical characteristics. Paired sales analysis cannot determine market conditions. Define the appraisal problem by identifying the property, its rights, scope of work, purpose of the appraisal, and date. Adjustments apply to the comparable property. The Principle of Change states market value isn't constant. When forces are balanced, equilibrium is achieved. Paired sales analysis is used in single-property appraisals.
More Information
The sales comparison approach relies on analyzing comparable properties and making systematic adjustments to estimate the subject property's market value.
Tips
A common mistake is applying adjustments to the subject property instead of the comparable properties.
