Property ValuationIntermediateDelaware Exam

Regression analysis in real estate appraisal refers to:

ADeclining property values due to neighborhood decline
BA statistical method used to analyze relationships between sales prices and property characteristicsCorrect
CThe income approach formula
DNegative adjustments made to comparable properties

Why A statistical method used to analyze relationships between sales prices and property characteristics Is Correct

Answer B: A statistical method used to analyze relationships between sales prices and property characteristics

Regression analysis is a statistical tool used in mass appraisal and automated valuation models to identify how various property characteristics influence sale prices.

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

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