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74 Cards in this Set
- Front
- Back
the market data method of evaluating real property is based upon the principle of adjusted __________ |
substitution
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definition:A reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed. The term is commonly used in real estate, but has a wide application.
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Functional Obsolescence
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When using the capitalization method, the appraiser will calculate all of the _________ expenses
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operating
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is a piece of land (open lot) depreciable?
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NOPE
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normal repairs of failing equipment within a building would be termed as
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corrective maintenance
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When there is an overall decrease in pricing, from an economic standpoint, it generally means a(n) _______ in interest rates
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increase
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Appraisers often need to consider current neighborhood influences when determining value on residential property. They usually set the boundaries of a residential neighborhood by _______ ________
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social likeness
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By dividing the annual net income by the most desirable rate of return, she can establish the
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income capitalization
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When a commercial property is located on a corner lot, an appraiser would estimate the value of the location as being at a ______ value
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higher
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The most significant difference between a staff appraiser and an independent fee appraiser is that they charge a _______ fee for each appraisal assignment.
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separate
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An appraiser may ethically Appraise a property __ ____, provided he disclose first his interest in the property.
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he owns
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How many feet are in an acre?
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43,560
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When establishing a capitalization rate using an income approach, the appraiser must consider two factors: the "rate on", which is known as expected return, and the "rate of, which is known as the rate of recapture. A "rate of" is determined by ___________ |
depreciation |
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When an investment is made in real estate, the usual rate of capital turnover is ______ than other commodities |
slower |
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Relative to the construction of a house, a joist is a __________ beam |
horizontal |
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The uppermost main structural support of a frame roof is the _____ _____ |
ridge board |
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When an appraiser employs the capitalization method, the most vital process would be to provide an ________ capitalization rate |
equitable |
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A rate of return on a real estate investment property based on the expected income that the property will generage. |
Capitalization Rate |
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Within the appraisal process, a construction of any type is regarded as ___________ |
improvement |
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A lot located at the back of other lots, which is accessible by way of a long narrow driveway, is known as a ___ lot |
flag |
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Residential properties are also known as _______ properties |
amenity |
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the income approach is normally used when valuating _____ based properties |
income |
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definition: Period during which the improvements to the land add value to the property |
economic life |
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When comparing the Economic Life of a property with the physical life of the property, the economic life is _______ with all improvements |
shorter |
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Becuase properties may be similar but not alike, the market data approach requires many comparisons. Comparables are adjusted to the _____________ of the subject property |
characteristics |
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Incurable depreciation means that you cannot ______ the problem |
solve |
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Negative outside influence would be termed as _________ depreciation |
incurable |
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Tables showing estimated changes in value as the depths of the lots vary from any standard depth |
depth table |
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An Appraiser would most likely use a depth table when determining a site valuation in regards to a ________ center |
shopping |
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You use the land residual method to secure an estimation of ____ value |
land |
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An appraiser prefers using the _____ comparison method when determining the value of unimproved property |
sales |
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a cost of a new building of the same utility using modern materials |
replacement cost |
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The replacement cost approach is easier to use when appraising a new property rather than an old property because of the amount of _________ that must be considered |
depreciation |
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Something outside of the property that appreciates the property is known as ________ increment |
inearned |
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A building with two units in one building would have a _____ wall |
party |
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The assessed value of the property is only appraised during the _____ year of purchasing the property. Otherwise, It's the least important aspect of appraising property |
first |
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T or F: In the replacement cost method, We are replacing the property, thus no depreciation to account for the valuation |
true |
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A member of the American institute of Real Estate appraisers is officially designated as _._._ |
M.A.I |
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Appariser Jones failed to include the following factors: Maintenance costs and current vacancies, when she determined the capitalization rate on an income property. Under the circumstances, she would be guilty of ______________ |
misrepresentation A |
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How many miles square are in a township? |
1 |
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If an appraiser holds a cetrified residential license he has:
No $ limit on ___________ and a limited to $________ on non=residential |
residential, 250,000 |
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The most complete (and most expensive) form of appraisal report typically running 10 to 100 pages or more. Thorough enough to allow the customer to follow the appraiser's reasoning and examine the supporting documentation. |
Narrarative report |
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using the capitalization method, appraiser Jones would not deduct ________ on liens when determining the net income of a commercial warehouse? |
interest |
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When income property is being evaluated, the appraiser would make his adjusted value opinion of scheduled rent on ______ ____ comparison |
market rent |
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When the inside surfaces of the outside walls of a building is the same temperature as the interior air space, the building is thought to have an________ insulation |
adequate |
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Definition: this is the second to last step. In this step, The appraiser estimates value by the three approaches, then reconciles the three values, and selects the value from the approach that is best suited for subject property |
Reconciliation Process |
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Using the Comparative Approach, appraiser Jones will compare currently sold properties with the assigned property using a process of substitution. When the assigned property has a feature that is not present in the comparable property, that feature value would be _____ to the selling price of the comparable property |
added |
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The first step an appraiser would take when asked to appraise a property is to define the _______ |
problem |
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An appraiser chooses to use an unconventional appraisal method in order to sway an FSLIC or FDIC insured lender, his actions would make him guilty of a ______ |
felony |
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When property taxes increase on income producing property and all other costs remain the same, based on the existing capitalization rate, the property value will _______ by more than the amount equal to the tax increase |
decrease |
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Acronym when a temperature control unit is highly efficient |
EER |
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Within the appraisal process, the interior of a residential home is regarded as _________ ____ |
Functional Zones |
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During the appraisal of a hillside residential single family home, Jones noticed a perceptible forward slope to the property. She also became aware of separation cracks where the front porch joined with the main structure of the house. As a result of her findings, she would probably recommend a ____ engineer report |
soil |
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When an appraiser employs the capitalization method, the most vital process would be provide an equitable ____________ rate |
capitalization |
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The Highest degree of capable income any income producing property can generate is the _________ gross income |
potential |
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Gonzales owns a tri-plex income property. during the last tax year, he sustained a $27,000 operational loss. Gaonzales can use the loss to offset part of the capital gain when he sells the property when he sells the property. true or false? |
true |
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definitino: Shows the placement of improvements on the lot |
plot plan |
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R-Value means resistance to ____ transfer |
heat |
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The useful accuracy of the cost approach becomes limited when appraising an _____ structure in a stable neighborhood |
older |
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A shift in ______ value when the property is sold, is an indication of a capital gain/ loss |
market |
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An appraiser would most likely use a "Depth table" when determining a site valuation in regards to a ________ ______ |
shopping center |
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An appraiser prefers using _____ ________ method when determining the value of unimproved property |
Sales comparison |
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Appraisers are subject to obligations and responsibilities regarding conduct, management, confidentiality, standards and record keeping. These actions are influenced by the requirements of the _____ |
USPAP |
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The Footing of a house is a ______ distributing concrete course upon the foundation is set |
weight |
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When depreciation is taken on real property, the basic value is _______ |
reduced |
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When appraising a property, the appraiser does not usually consider the tax __________ value |
assessment |
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you typically use the ____ appoach when appraising special purpose property |
cost |
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a dwelling which contains a party wall would be considered ________ |
attached |
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Appraiser jones would probably use the ______ ____ method to estimate the value of vacant land that the owner tends to subdivide |
market datA |
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An evalation sheet would depict a drawing of the finished front and side views of the _________ |
structure |
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The Inwood Method and the Hoskold (sinking fund) method are theories in the field of __________ |
appraisal |
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If current highest and best use is to change, current use is called _______ use |
interim |
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When amenity-type properties are appraised, the method generally used is ______ __________ |
market comparison |
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The useful accuracy of the cost approach becomes limited when appraising an older structure in a ______ neighborhood |
stable |