15 - Appraisal Flashcards
How is investment value best defined?
The value to an individual
What type of value does an appraiser most commonly estimate?
Market
Which of the following conditions is necessary for the sales price of a property to equal its market value?
The transaction must involve a willing and informed buyer and seller
What is market value?
The amount that should be paid
How is gross rent multiplier calculated?
By dividing comparable property sales price by comparable property rent
Functional obsolescence includes which of the following?
An over improvement
Which appraisal approach would be given greater weight when appraising an apartment complex?
Income approach
Which appraisal approach is most suitable for estimating the value of a single-family property?
Comparable sales
Which method may not be used to estimate replacement/reproduction cost?
Economic age-life
What estimate is the result of income divided by a capitalization rate?
Market value
If income remains constant and the capitalization rate is reduced, which statement best describes the effect on value?
The value increases
