ENGRADE Chapter 17 Flashcards
the combining of two or more adjoining lots into one larger tract to increase their value is
ASSEMBLAGE
Which of the following is generally considered to be an INCURABLE form of DEPRECIATION?
ECONOMIC OBSOLESCENCE
When appraising real estate the appraiser would consider all of the following in making a determination of value
contractual agreement between the seller and the buyer
Highest and best use of the property
selling prices of similar properties
(NOT sellers original purchase price of the property)
It is necessary to calculate a dollar value for depreciation when using which of the following approaches to value
The COST APPROACH
In the cost approach to value, the appraiser makes use of the
Estimated replacement cost of the building
Sales Comparison Approach to Value
a home that was sold between six and twelve months ago
A home that was sold recently but is located in a similar nearby neighborhood
A home that was sold recently but is located on a much larger lot
Using which of the following approaches would require the value of the land to be calculated separately from the value of the improvements ?
The Cost Approach
To find the value of a property using the INCOME APPROACH TO VALUE if the net operating income and the capitalization rate were known, the appraiser would
DIVIDE the net operation income by the capitalization rate
All of the following are elements of value utilized by appraisers
Demand
Transferability
Utility
(NOT substitution)
The appraisal principal which states that the value of items of similar quality are determined by the lowest price is
SUBSTITUTION
The fact that lesser valued properties will be given greater value by the presence of higher priced ones and that higher priced properties will have values decreased by the presence of lesser valued ones is an application of the principals of
PROGRESSION AND REGRESSION
The amount that component parts add or detract from the value of a property is the principal of
CONTRIBUTION
