Real Estate Appraisal Is Often Considered "More Art Than Science

question 14

Multiple Choice

Real estate appraisal is often considered "more art than science," since identifying truly comparable properties is a subjective process. Therefore, it is essential that a comparable property transaction at least meets the requirement that it was fairly negotiated under typical market conditions. Which of the following types of transactions would be most appropriate for use in the sales comparison approach to valuation?

• A) Commingled business transactions
• B) Low-interest financing programs
• C) Real estate auctions
• D) Arm's-length transactions

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Definitions:

Stepparent Structure

The family dynamic that arises when a parent's new spouse or partner assumes a parental role in the family, without adopting the child legally.

Financial Advantage

The benefit or gain, often in terms of money or economic value, that a person or entity receives, often through investments, business operations, or other means of increasing wealth.

Positive Adaptation

The process of adjusting to new conditions in a way that maintains or enhances well-being or effectiveness.

Resilience

The mental capability to adapt and bounce back quickly from adversity, trauma, tragedy, or significant sources of stress.