Chapter 11: Real Estate Appraisal Flashcards Preview

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Flashcards in Chapter 11: Real Estate Appraisal Deck (20)
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1

A home having only one bathroom located next to the kitchen suffers from:

functional obsolescence.

2

Three characteristics of value?
STU

Scarcity
Transferability
Utility

3

If an appraiser uses more than one approach to value, the process of analysis and weighing of the differing values to determine an opinion of value is known as:

correlation or reconciliation of values.

4

A capitalization rate incorporates the:

return on land and building, and recapture of building

5

To appraise a special-use building, an appraiser would most likely use the:

cost approach.

6

The highest and best use of a property is the use that:

complies with zoning and deed restrictions and that results in producing the greatest net return for the owner.

7

Which approach to value would an appraiser be concerned with when calculating the present worth of future benefits?

Income approach

8

The cost method of appraisal uses: (name three)
SQU


1. square footage
2. quantity survey
3. unit in place

9

The features that usually increase the value of residential property, such as a water view, nice landscaping, quiet neighborhood, etc. are known as __________ .

amenities

10

Which of the following type of depreciation is always incurable?

Economic obsolescence

11

Chase bought a lot and constructed a high-quality home valued at $400,000 in a neighborhood of homes valued at $290,000. In appraisal terminology, the home would experience an immediate loss in value due to the principle of __________ .

regression

12

In a properly developed community, values are upheld by:

conformity to land use objectives.

13

An appraisal by a certified appraiser is best defined as:

an opinion of value as of a specific date.

14

Effective age is the term used to define the:

age the appraiser believes to reflect the condition of the improvement.

15

Sean hired an appraiser to prepare a feasibility study for adding a swimming pool to a 12-unit apartment building. What basic principle of appraising would the appraiser use?

Contribution

16

Market value is:

the price a willing seller will accept and a willing buyer will pay.

17

When applying the market data or sales comparison approach to value, an appraiser would most likely use:

sold properties in the same geographic area.

18

Which of the following statements is correct?

Scheduled Gross Income is the total amount of income a property could generate if it were 100% occupied for 100% of the year.

19

The method of appraisal that carries the most weight in the valuation of residential property is known as the:

market data approach.

20

The term depreciation is best defined as loss in value due to: (name three)
FPR

functional obsolescence.
physical wear and tear.
regression.