In Making an Appraisal by the Market Comparison Approach, an Appraiser

question 41

Multiple Choice

In making an appraisal by the market comparison approach, an appraiser should

• A) consider the physical and economic features of the subject property.
• B) consider the yield of the subject's property with competitive rates of return.
• C) make adjustments to the value of the subject property with competitive rates of return.
• D) utilize comparable listings withdrawn from the market.

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Definitions:

Fair Value

The estimated market value of an asset or liability, based on current market conditions rather than historical cost.

Trading Securities

Financial assets such as stocks or bonds, bought and held primarily for the purpose of selling them in the near term to realize short-term gains.

Fair Value

An estimate of the market value of an asset or liability, reflecting the amount for which it could be exchanged or settled between knowledgeable, willing parties in an arm's length transaction.

Retained Earnings

Profits that a company has reinvested into the business rather than distributing to shareholders as dividends.