When an appraiser determines that a comparable sale was made under duress (foreclosure), how should the appraiser treat it?
Why Discard it or carefully adjust for the distressed conditions that affected the sale price Is Correct
Answer B: Discard it or carefully adjust for the distressed conditions that affected the sale price
Exam Tip: Property Valuation
Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.
Key Property Valuation Terms in This Question
People Also Study
Related Alaska Questions
- An appraiser in Alaska uses the sales comparison approach and finds three comparable sales. After adjustments, the adjusted values are $310,000, $315,000, and $312,000. The most likely estimate of value using reconciliation would be:Property Valuation
- An appraiser in Alaska determines a comparable property sold in an estate sale at 10% below market value. To use this comparable, the appraiser should make:Property Valuation
- An Alaska appraiser determines that comparable sales need a 'market conditions adjustment' of +2% per year due to price appreciation. For a sale that closed 18 months ago at $400,000, the time-adjusted price is approximately:Property Valuation
- In the sales comparison approach, an appraiser adjusts the comparable sale price when:Property Valuation
- Which of the following environmental conditions MOST directly reduces a property's market value in Alaska?Environmental
Key Terms to Know
A sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Math Concepts
Study This Topic
Practice More Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →