Chapter 11 - Real Estate Appraisal Flashcards Preview

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Flashcards in Chapter 11 - Real Estate Appraisal Deck (20)
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A home having only one bathroom located next to the kitchen suffers from

functional obsolescence


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



Effective age is the term used to define the

age the appraiser believes to reflect the condition of the improvement


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


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 ___



in a properly developed community, values are upheld by

conformity to land use objectives


an appraisal by a certified appraiser is best defined as

an opinion of value as of a specific date


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

any of the above


which of the following is not a characteristic of value?



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

plottage reduction


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

sold properties in the same geographic area


Market value is

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


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


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

cost approach


a capitalization rate incorporates the

return on land and building, and recapture of building


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

market data approach


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



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


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

economic obsolescence


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