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North Carolina Real Estate Licensing Exam > Appraisal > Flashcards

Flashcards in Appraisal Deck (15)
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Define Appraisal

1. An estimate or opinion of market value supported by an analysis of relevant properties.

2. The determined value is good for only 1 day.

1

What is a "URAR"?

1. The Uniform Residential Appraisal Report (URAR) Is the standard form normally used for residential appraisals.

2

What is "USPAP"?

1. The Uniform Standards of Professional Appraisal Practice.

2. All appraisers are expected to follow the guidelines there within.

3

What are the essential elements of value?

⭐️D.U.S.T.⭐️

Demand
a) Desire
b) Affordability

Utility (usefulness)
a) Does the property fill a specific need?
b) Subjective: based on needs of potential buyer.

Scarcity
a) There is a finite supply of land.
b) Land in specific areas may be limited. (scarce)

Transferability
a) Must have marketable title.
b) No value if title cannot be transferred.

4

What are the forces and factors that affect value?

⭐️P.E.G.S.⭐️

5

Anticipation

.

6

Supply & Demand

.

7

Substitution

1. Most important principle in appraisal.

8

Conformity

.

9

Contribution

.

10

Competition

Z

11

Change (appraisal)

.

12

Sales Comparison Approach / Market Data Approach

Z

13

Cost Approach

.

14

Income Approach

S