Certified Residential Appraiser Practice Exam

What is meant by "general data" in the context of property appraisal?

1. Specific information about the property

2. Data influenced by external social and economic factors

3. Statistical data regarding construction costs

4. Market trends only related to local properties

The correct answer is: Data influenced by external social and economic factors

In the context of property appraisal, "general data" refers to information that encompasses external social and economic factors influencing property values. This type of data provides a broader understanding of the environment in which a property exists, including trends in demographics, economic conditions, government policies, and social trends. It helps appraisers to assess how these external factors can impact the supply and demand for properties in specific markets, ultimately affecting values. General data is crucial for understanding the bigger picture beyond the individual property itself, allowing for more accurate appraisals that take into account the surrounding influences that can affect market behavior. The other options focus on specific types of data. Specific information about a property relates to characteristics unique to the property itself rather than the broader economic context. Statistical data regarding construction costs pertains to pricing and expenses associated with building materials and labor but does not address external factors impacting the market. Finally, discussing market trends only related to local properties constrains the analysis unnecessarily, as it neglects the impact of broader economic and social trends that play a significant role in the valuation process.