Property Valuation
A Mississippi appraiser completing an appraisal for a lender notices the subject property has been listed for sale three times in the past 18 months with increasing prices but no sales. This pattern indicates:
AStrong demand justifying the increasing prices
BPossible overpricing — the property has not attracted buyers despite multiple exposures, suggesting market value may be below the current asking price✓ Correct
CThe seller is not motivated
DNo appraisal implications
Explanation
Multiple listing periods without a sale (despite increasing prices) suggests overpricing relative to market value. The appraiser should consider this market history as evidence that the current list price may exceed actual market value.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
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