Real Estate Appraisal Quiz

What should be the amount of the negative dollar adjustment for each comparable with sales or financing concessions?

• Based on how typical the concessions might be for a segment of the market area

• Equal to any increase in the purchase price of the comparable

• Based on the seller's preference

• Determined by the appraiser's personal judgment

Why are positive adjustments for sales or financing concessions not acceptable?

• Because they do not reflect the difference between actual sale prices and prices without concessions

• Because they are not common in the market area

• Because they are not recognized by Fannie Mae

• Because they are not beneficial for the seller

What approach is not appropriate for making adjustments for sales or financing concessions?

• Adjustments based on the appraiser's preference

• Strict cash equivalency approach

• Percentage-based adjustments based on the market area

• Dollar-for-dollar deductions equal to the cost of the concessions to the seller

When should the appraiser recognize comparable sales that sold for all cash or with cash equivalent financing?

• If they are sold at a lower price than other properties

• If they are not recognized by Fannie Mae

• If they are not common in the market area

• If they are the best indicators of value for the subject property

What should the adjustments for sales or financing concessions reflect?

• The difference between actual sale prices with concessions and prices without concessions

• The typical concessions in the market area

• The appraiser's personal opinion on concessions

• The seller's preference for concessions