Chapter 11 - Real Estate Appraisal Flashcards Preview

Real Estate Principles - CA > Chapter 11 - Real Estate Appraisal > Flashcards

Flashcards in Chapter 11 - Real Estate Appraisal Deck (20)
Loading flashcards...
1

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

functional obsolescence

2

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

amenities

3

Effective age is the term used to define the

age the appraiser believes to reflect the condition of the improvement

4

which of the following statements is correct?
-economic rent is the income reported for net income taxes
-scheduled gross income is the total amount of income a property could generate if it were 100% occupied for 100% of the year
-contract rent is income received from property under a contract to sell
-economic rent will always be less than contract rent

scheduled gross income is the total amount of income a property could generate if it were 100% occupied for 100% of the year

5

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

6

in a properly developed community, values are upheld by

conformity to land use objectives

7

an appraisal by a certified appraiser is best defined as

an opinion of value as of a specific date

8

the term depreciation is best defined as loss in value due to:
-physical wear and tear
-regression
-functional obsolescence
-any of the above

any of the above

9

which of the following is not a characteristic of value?
-utility
-cost
-scarcity
-transferability

cost

10

the cost method of appraisal uses all of the following EXCEPT:
-plottage reduction
-quantity survey
-unit in place
-square footage

plottage reduction

11

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

sold properties in the same geographic area

12

Market value is

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

13

which approach to value would an appraiser be concerned with when calculating the present worth of future benefits?
-cost approach
-market data approach
-income approach
-all of the above

income approach

14

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

cost approach

15

a capitalization rate incorporates the

return on land and building, and recapture of building

16

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

market data approach

17

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

18

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

19

which of the following type of depreciation is always incurable?
-functional obsolescence
-economic obsolescence
-physical deterioration

economic obsolescence

20

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