medium · National Real Estate Exam valuation
Elliot Hayes, a sales associate, encounters this situation: A buyer can purchase a comparable substitute for less than the asking price of the subject property.
Which conclusion is most accurate?
- The cheaper substitute puts downward pressure on the subject's value.
- The subject must be worth more because it was listed first.
- The comparable is irrelevant unless it is physically identical.
- The asking price establishes market value regardless of alternatives.
Sign up free to see the explanation and track your rank →
More National Real Estate Exam valuation practice
- An appraiser is valuing a highly specialized chemical plant that has unique equipment esse
- A person wants to buy a luxury beachfront condo but has a very low credit score and no cas
- If an appraiser is valuing a small residential rental property using a Gross Rent Multipli
- If an appraiser uses 'replacement cost' to value a building, they are estimating the curre
- In appraisal terminology, how is 'Price' distinguished from 'Value'?
- The Federal regulatory definition of market value assumes th… — This is meant to exclude w
- If the building is20%depreciated and the land is worth $75,000, what is the total property
- If there is no depreciation, what is the indicated value by the cost approach?