Certified Residential Appraiser Practice Exam

What does the time/distance relationship refer to in property appraisal?

1. Proximity of amenities and services

2. Market value versus assessed value

3. Location of zoning regulations

4. Environmental impact assessments

The correct answer is: Proximity of amenities and services

The time/distance relationship in property appraisal refers to the concept of how the proximity of various amenities and services influences property values. This principle highlights that the closer a property is to desirable features such as schools, parks, shopping centers, and public transportation, the more valuable it is likely to be. An appraiser considers how distance impacts accessibility and desirability, which directly affects market value. The other options, while important in the field of appraisal, pertain to different aspects of property valuation. Market value versus assessed value addresses how properties are valued for taxation versus their potential market price. The location of zoning regulations refers to how certain regulations can limit or enhance property usability and development, affecting desirability and value. Environmental impact assessments evaluate how a property may affect or be affected by its environment but do not specifically relate to the distance factor inherent in property valuation. Thus, the focus on proximity to amenities aligns directly with the time/distance relationship.