Favorable Mortgage Financing May Have a Significant Impact on the Transaction

question 3

Multiple Choice

Favorable mortgage financing may have a significant impact on the transaction price of the particular property.If the comparable property was known to have had favorable financing terms negotiated into the transaction price,which of the following adjustments should take place? (Note: Assume that the comparable property cannot be dropped from the analysis as there are already limited comparable sales transactions)

• A)The transaction price of the comparable property should be adjusted downward.
• B)The transaction price of the comparable property should be adjusted upward.
• C)The transaction price of the comparable property should not be adjusted.
• D)There is no way to estimate the price of the subject property.

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Definitions:

Family Members

Individuals related by blood, marriage, adoption, or other legal affiliations, often sharing a common domicile and participating in various domestic and emotional bonds.

Schizotypal Personality Disorder

A mental health disorder characterized by severe social anxiety, thought disorder, paranoid ideation, derealization, transient psychosis, and often unconventional beliefs.

Unusual Beliefs

Thoughts or convictions that significantly deviate from the conventional or expected, often found in certain psychiatric conditions or in cultural or religious contexts.

Significance

The importance or meaning of something, often used in statistics to denote the likelihood that a result is not due to chance.