1 - Review Of Valuation Principles Flashcards
The last step, step 8, of The Valuation Process is…
Report of Defined Value
1-4
The second to last step, step 7, is…
Reconciliation of Value Indications and Final Opinion of Value
1-4
The sales comparison approach is based on research of comparable sales & _______
Listings
1-6
The sales comparison method is ________ the preferred method when we have enough comparable sales
A Sometimes
B Always
C Usually
D Never
B ALWAYS
1-6
___________ is the conversion of income into value
Capitalization
1-12
T/F an appraiser can use a a GRM extracted from a 6 month old sale
True because GRM is a ratio and older sales typically reflect similar ratios
1-15
In the principle of ____________ it is stated that if multiple similar options exist, the lowest price will attract the greatest demand
Substitution
1-16
____________ is the perception that value is created by the expectation of benefits to be derived in the future
Anticipation
1-16
_____________ is the concept that the value of a particular component is measured in terms of the amount it adds to the value of the whole property or as the amount that it’s absence would detract from the value of the whole
Contribution
1-17
The principle of _______ is why we have an effective date on appraisals
A substitution
B balance
C change
D supply and demand
C Change
1-20
The principle of _________ is the result of the cause and effect relationship among the forces that influence real property value
Change
1-20
________ is the principle that real property value is created and sustained when contrasting, opposing, or interacting elements are in a state of equilibrium
Balance
1-21