How much it counts
| Vendor | Outline area (salesperson national) |
|---|---|
| Pearson VUE | Property value and appraisal (11) of 80 scored items |
| PSI | Valuation 8% of the national portion |
Study notes
- Sales comparison approach: adjust the comparable, never the subject. Comp better than subject = subtract; worse = add.
- Cost approach: land value + (reproduction or replacement cost - depreciation). Best for new or special-purpose buildings.
- Income approach: value = NOI / cap rate; GRM for small residential rentals. See cap rate math.
- Depreciation types: physical deterioration, functional obsolescence, external (economic) obsolescence - external is usually incurable.
Exam traps
- Adjusting the wrong property. Adjustments go on the comps.
- Market value vs price vs cost. Three different things.
- CMA is not an appraisal. Licensees must not represent a CMA as one.
Educational summary, not legal advice. State law can change the rule - your state portion tests your state’s version.
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