Certified Pennsylvania Evaluator Practice Exam

What are the two ways of collecting data in property appraisal?

1. Qualitative and Quantitative

2. Primary and Secondary

3. Historic and Current

4. Survey and Census

The correct answer is: Primary and Secondary

The correct answer, which identifies the two ways of collecting data in property appraisal as primary and secondary, is significant because it clarifies the sources from which appraisers gather information necessary for their evaluations. Primary data refers to first-hand information acquired directly through fieldwork or surveys, such as conducting interviews with property owners, measuring property attributes in person, or observing market trends first-hand. This data is crucial because it provides the most accurate and relevant information pertaining directly to the property in question. Secondary data, on the other hand, includes information that has already been collected and published by others. This could come from governmental reports, real estate market analyses, historical data, or economic studies. While secondary data is often valuable for context and comparative analysis, it may not always reflect the most current market conditions specifically relevant to the appraiser's needs. Understanding the distinction between these types of data is essential for accurate property appraisal since relying solely on one type could create biases or gaps in understanding the property's true value.