Certified Pennsylvania Evaluator Practice Exam

What would generally happen to the value of a superior property being compared to an inferior property?

1. Increase in value

2. No effect

3. Decrease in value

4. Become undetermined

The correct answer is: Increase in value

When comparing a superior property to an inferior property, the general expectation is that the value of the superior property would lead to an increase in its perceived value relative to the inferior property. This is grounded in the principles of real estate appraisal and market dynamics, where properties with better features, location, or quality tend to attract higher market values. The reasoning behind this is that buyers are often willing to pay a premium for superior conditions, amenities, land use, or overall quality that improves their living experience or investment potential. When conducting a comparative market analysis, appraisers take into account the differences in attributes, with superior properties commanding higher prices due to their desirability. This relationship underscores why appraisers consider the characteristics that distinguish superior properties, impacting how they analyze market trends and values. Therefore, a superior property is typically perceived as having increased value in comparison to an inferior property, leading to higher market demand and ultimately contributing to an increase in its appraised worth.