Certified Residential Appraiser Practice Exam

Which of the following is NOT considered an environmental factor in appraisal?

1. Climate

2. Topography

3. Market pricing

4. Natural barriers

The correct answer is: Market pricing

Market pricing is not considered an environmental factor in appraisal. Environmental factors typically include elements that directly affect the physical characteristics of a property and its surrounding area, such as climate, topography, and natural barriers. Climate refers to the long-term weather patterns in a region, which can influence how properties are built and maintained. Topography involves the physical landscape, including the contours and elevation of the land, affecting usability and accessibility. Natural barriers, like rivers or mountains, can impact development and property value due to restricted access or desirable views. In contrast, market pricing relates to economic conditions and buyer/seller behaviors that determine property values at a given time. While market pricing is influenced by environmental factors, it itself is a market characteristic rather than an environmental one. Thus, it is critical to understand that market pricing derives from various influences rather than being categorized among the physical or natural environmental factors affecting an appraisal.