Which of the Following Statements Regarding the Sales Comparison Approach

question 36

Multiple Choice

Which of the following statements regarding the sales comparison approach to appraisal is TRUE?

• A) As a "rule of thumb" transactions involving foreclosures should be discounted by 10 percent
• B) The comparable buildings' characteristics are more important that the comparable properties' location for performing the sales comparison
• C) The comparable sales must involve transactions between unrelated individuals
• D) The only factors important for comparable analysis are property size, building size, age of the building, and the condition of building

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Definitions:

Scoria Cone

A small, steep-sided volcanic cone built from highly vesicular basaltic lava fragments.

Shield Volcano

A type of volcano with broad, gently sloping sides, formed by the eruption of highly fluid lava.

Composite Volcano

A type of volcano characterized by explosive eruptions and composed of alternating layers of lava and ash.

Caldera

A large volcanic crater, typically formed by a major eruption leading to the collapse of the mouth of the volcano.