Certified Residential Appraiser Practice Exam

What does "specific data" refer to in real estate appraisal?

1. General market trends and economic conditions

2. Property-specific characteristics and comparable sales

3. Government regulations affecting property value

4. Demographic information of a neighborhood

The correct answer is: Property-specific characteristics and comparable sales

In real estate appraisal, "specific data" is primarily concerned with property-specific characteristics and comparable sales. This type of data includes details such as the size, layout, age, condition, and amenities of a property. These characteristics are crucial for appraisers because they allow for accurate comparisons with similar properties that have recently sold, commonly referred to as "comps." Using specific data enables the appraiser to determine the value of a property within the context of its direct market environment, taking into account the unique features that influence its worth. This comparison with other similar properties helps to establish a more precise appraisal value. While general market trends, government regulations, and demographic information can provide important context when assessing a property's value, they do not fall under the category of "specific data." Instead, they represent broader influences that may affect the valuation process but are not tied to the individual characteristics of a specific property or the immediate market in which it operates.