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22 Cards in this Set
- Front
- Back
The term appraisal refers to |
A defensible opinion or estimate of value of real property as of a certain date |
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Which approach to appraisal is best for existing single family residence? |
Comparison |
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What would not be depreciated |
Unimproved land leased for open storage |
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A home with 5 bedrooms a formal dining Room living Room family Room with one bath A den first floor utility Room is |
Suffering from functional obosolescence |
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According to the principle of conformity a residential property maintains a higher value when it is |
In an area of similar properties |
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The income cap technique uses |
Annual net income |
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It would be unethical for an appraiser to |
Base her payment on a percentage of the appraised value |
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Income capitalization is most likely to be used when the subject property is a |
Apartment complex |
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Staff appraisers might be used by a |
Both a large corporation with many properties to manage and a large mortgage company reviewing hundreds of appraisals here |
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An appraisal is the |
Supported opinion of value |
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Which income is calculated by subtracting Vacancy and collection losses from gross income |
Effective gross income |
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Using the market data approach how would an appraiser estimate the value of a second bath |
Analyze matched pair sales in the area |
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Situs can be defined as |
In area a preference which Can attribute value |
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The rule that says an item is worth only what it contributes in value to the property is the rule of |
Contribution |
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What is an appraisal |
An opinion of value for the day of the appraisal only |
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Which term best describes a piece of land that is enhanced and ready for a building or structure |
Site |
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Capitalization rate refers to the |
Rate of return used by investors |
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A property has been renting for 750 per month. Based on comparables, the GRM is 110 what is the indicated value of the property |
990000 The indicated value using a GRM is the (monthly rent ×12 (months)) × GRM in this case (750×12)×110 = 990000 |
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The subject property best describes the property |
For which the value is sought |
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Which approach to value would be most appropriate when appraising a vacant factory? |
Cost approach |
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When using the cost approach to appraise a property the appraiser is most likely working for the |
Insurance company trying to obtain a replacement cost on the property |
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A 10 unit apartment building has an annual gross income of 5000 per unit a vacancy and collection loss of 5% is normal for the area. Annual expenses total 9250. The purchasers desire a 10% return on their investment how much should they be willing to pay for the property |
382,500 The value of the property equals net income divided by the rate of return. The formula is Gross income (50,000)- vacancy and collections (2,500)= effective gross income (47,500)- expenses (9,250)=net income (38,250). Net income (38,250)/ rate (10% or 0.10)= Value (382,500) |