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Unit 16: Real Estate Appraisal
Terms in this set (22)
What principle of value states that if the increase in the value of the real estate is more than the cost to renovate, the sellers would financially benefit by doing the renovation?
Which appraisal method uses a rate of investment return?
An appraisal is
an opinion of value based on supportable evidence and approved methods
The characteristics of value include which of the following?
There are two vacant adjacent lots, each worth approximately $50,000. If their owner sells them as a single lot, however, the combined parcel will be worth $120,000. What principle does this illustrate?
An appraisal used in connection with a federally related transaction must be performed by a competent individual whose professional conduct is subject to supervision and regulation by the state as mandated by the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA)
The amount of money a property is likely to command in the marketplace is its
A homeowner constructs a five-bedroom brick house with an indoor pool in a neighborhood of modest two-bedroom and three-bedroom frame houses on narrow lots. The value of this house is MOST likely to be affected by what principle?
The owners of a modest ranch house in a neighborhood of larger, more expensive homes may find that the value of their home is affected by what principle?
Appraisers are expected to follow the
Uniform Standards of Professional Appraisal Practice (USPAP)
For appraisal purposes, accrued depreciation is NOT caused by
The term reconciliation refers to which of the following?
Analyzing the results obtained by the different approaches to value to form an opinion of value
A federally related transaction is any real estate-related financial transaction
in which a federal financial institution or regulatory agency is engaged
If a property's annual net income is $24,000 and it is valued at $300,000, what is its capitalization rate?
Which of the following is NOT used by an appraiser applying the income approach to value?
The acronym CMA stands for
Comparative Market Analysis
An appraiser asked for an opinion of the value of an existing shopping center would probably give the MOST weight to which approach to value?
The market value of a parcel of real estate is
an estimate of the most probable price it should bring
Capitalization is the process by which annual net operating income is used to
From the reproduction or replacement cost of a building, the appraiser deducts depreciation, which represents
loss of value due to any reason
The acronym BPO stands for
Broker's Price Opinion
All of the following factors would be important in comparing properties under the sales comparison approach to value EXCEPT
differences in original cost
THIS SET IS OFTEN IN FOLDERS WITH...
Unit 11 exam
GA Unit 16:Real Estate Appraisal Unit Review
Unit 8: Title Records
Unit 27 Real Estate
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