# Shared Flashcard Set

## Details

Real Estate Appraisal:14(Test 2)
14-Comparative Analysis
21
Real Estate & Planning
Undergraduate 4
10/24/2009

## Cards Return to Set Details

Term
 Comparative analysis
Definition
 process by which a value indication is derived in the sales comparison approach. Comparative analysis may employ quantitative  or qualitative techniques, separately or combined.
Term
 Quantitative adjustments are made before qualitative analysis is performed. T/F
Definition
 True
Term
 What are the techniques to quantify adjustments?
Definition
 Data Analysis: Paired Data Grouped data Secondary data Statistical Analysis Graphic Analysis Scenario Analysis Cost Related Adjustments Cost-to-cure Depreciated Cost Capitalization of income differences
Term
 Paired Data Analysis
Definition
 a quantitative technique used to identify and measure adjustments to the sale prices or rents of comparable properties; to apply this technique, sales or rental data on nearly identical properties is analyzed to isolate a single characteristic's effect on value or rent.
Term
 Grouped Data Analysis
Definition
 grouping data by an independent variable such as date of sale and calculating equivalent typical values. The grouped sales are studied in pairs to identify the effect on a dependent variable such as the unit price of comparable properties
Term
 Sensitivity Analysis
Definition
 method used to isolate the effect of individual variables on value
Term
 When is paired analysis impracitcal to use?
Definition
 when only a narrow sampling of sufficiently similar properties are availible
Term
 Pure pairing
Definition
 pairs of sales that are identical except for the single element being measured
Term
 What is a common application of statistical analysis?
Definition
 th appraiser can develop a series of adjustment factors for different tract sizes by creating a simple linear regression model and then use the regression analysis as a means of inferring the size adjustment for properties within the range of the data.
Term
 Scenario analysis
Definition
 a form of modeling in which the outcomes of future events are forecast to test the probability or correlation of alternative outcomes
Term
 Graphic Analysis
Definition
 quantitative techniques used to identify and measure adjustments to the sale prices of comparable properties; a variant of statistical analysis in which an appraiser interprets graphically displayed data visually or through curve fit analysis.
Term
 Cost analysis
Definition
 adjustments are based on cost indicators such as depreciated building cost, cost to cure, or permit fees
Term
 When is cost realted adjustments most persuasive?
Definition
 markets with limited sales activity
Term
 Qualitative Analysis techniques
Definition
 Trend analysis Relative comparison analysis Ranking analysis
Term
 Trend Analysis
Definition
 a qualitative technique used to identify and measure trends in the sale prices of comparable properties; useful when sales data on highly comparable properties is lacking, but a broad database on properties with less similar characteristics is availible. Market sensitivity is investigated vy testing variuos factors that influence sal prices.
Term
 How do you apply the relative comparative analysis?
Definition
 analyze comparable sales to determine whether the comparable properties characteristics are inferior, superior, or similar to those of the subject property
Term
 Bracketing
Definition
 a process in which an appraiser determines a probable range of values for a property by applying qualitative techniques of comparative analysis to a group of comparable sales....the array of comparables may be divided into superior, similar, and inferior.
Term
 Ranking analysis
Definition
 a qualitative technique in which comparable sales are ranked in descending or ascending order of desirability and each is analyzed to determine its position relative to the subject
Term
 The transactional adjustments are generally applied in what specific sequence?
Definition
 Real property rights conveyed  Financing terms Conditions of sale Expenditures made immediately after purchase Market conditions
Term
 What are expenditures that must be made immediately after purchase?
Definition
 Costs to cure deferred maintenance Costs to demolish and remove any portion of the improvements Costs to petition for a zoning change Costs to remediate environmental contamination Cost of obtaining entitlements Demolition and removal costs Large capital improvements
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