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Flashcards in Valuation and Appraisal Deck (45)
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1

The four parts of an appraisal are:

Date
Description of the property
Estimate of value,
Signature of the appraiser

2

The nature of value incorporates the acronym DUST. The letters stand for:

Demand
Utility
Scarcity
Transferability

3

T/F. The appraiser uses the information accumulated to find an "average" value.

False

4

Which appraisal report has the most comprehensive records and backup information included (such as maps, photographs, etc.)?

Narrative

5

Which appraisal report is less formal, with a simple statement of value, usually less than a page long?

Letter

6

Which appraisal report is in the form of a "checklist" and most often used for institutional lenders?

Short

7

Of value in use and value in exchange, which is subjective?

Use

8

A neighborhood where all homes are similar in design and value illustrates the principle of:

Conformity

9

If most homes are approximately $60,000 in value and one is $100,000, the $100,000 home is an example of the principle of:

Regression

10

In an area of $100,000 homes, the $90,000 home is an example of:

Progression

11

Amenities are:

Pleasure items

12

A view would be considered a:

Intangible Amenity

13

A hot tub would be a:

Tangible Amenity

14

Define Assemblage

Joining two or more contiguous parcels of land together.

15

If putting two or more contiguous parcels of land together increases the value, that is:

Plottage

16

Which of these qualify as a "service" property?

a. Church
b. Home
c. Vacant lot

A. Church

17

The shared or common wall between two twin homes is called a _____ ____.

Party Wall

18

Name the 3 appraisal approaches:

Market Data (Comparison)
Cost Replacement
Income

19

Which is most expensive?
a.Cost Reproduction
b. Cost Replacement

a.Cost Reproduction

20

T/F The total square feet in a home is measured by inside dimensions.

False

21

The Gross Rent Multiplier (GRM) is found by dividing the purchase price by the gross rents.

True

22

The boundary of the lot that runs parallel to the street is called?

Front feet

23

How close to the street are you allowed to construct a building is referred to as the ___ ____ ____.

Set back line

24

Which is considered by the appraiser to be longer:

a. Economic life
b. Physical life
c. Appraised life
d. Amortized life

b. Physical Life

25

The last step (before the report) in the appraisal process is to _________ ___ _____.

Reconcile the data

26

What you paid for the property is the:
a. Price
b. Cost

Cost

27

29. What you sell it for is the:
a. Price
b. Cost

Price

28

The first principle of appraising is:

Highest and Best Use

29

To determine highest and best use, the appraiser asks:

Is it legal?
Is it economically feasible?
What will bring the highest return now and in the future?

30

The appraisal principle that states: "No prudent buyer will pay more than he has to in order to get what he wants," is:

Substitution