MARKET DATA APPROACH

An appraisal of current market value is considered to be accurate for

• 90 days

• Until the property is sold

• 1 year

• Date of appraisal

One which states that the maximum value of a property tends to be set by the cost

of purchasing an equally desirable and valuable replacement property, as the basic

principle that underlies the Market Data Approach of Sales Comparison

• Principle of substitution

• Principle of conformity

• Principle of highest and best use

• Principle of consistent use

Refers to prices or values of land adjacent to or “across the fence” from railroad,

pipeline, highway or other corridor real estate.

• Buyer’s market

• Across the fence value

• Corner influence

• Property line

To be considered comparable to the subject property, a comparable must have

been sold

• in an arm’s-length transaction

• with a conventional mortgage

• without any form of secondary financing

• for all cash

Recent sales of comparable sites competitive with the subject site

• A. Are the most reliable guide to the probable current market behavior and

  reactions of informed buyers.

• B. Do not indicate any probable current market behavior and reaction of informed

  buyers.

• C. Both a and b.

• D. None of the above.

Is the fair market value of the land in a specific zone or area as established by the

BIR.

• Salvage Value

• Market Value

• Scrap Value

• Zonal Value

For land sales to be used as comparables, they must be

• competitive with the subject

• relatively recent

• open market transactions

• all of the above

Appraisals are always used

• To make residential mortgages

• To settle divorces

• To settle lawsuit

• To solve problem that involve real estate values

The reliability of an appraisal depends on the

• a. knowledge and judgment of the appraiser

• b. accuracy of the data used

• c. Both a and b.

• d. Neither a nor b.

Estimating market value requires identification of the desires and priorities of

• Well-informed buyers and sellers

• A fully informed seller

• A typically informed purchaser

• A typically informed seller