16 Flashcards
Bob has the largest, nicest home in a neighborhood that is not being kept up by the other homeowners. What principle affects the value of Bob’s home?
Regression
What is the first step in the cost valuation approach?
Approximate land value as if it were vacant
The broker’s (CMA) will be__________ than the appraiser’s estimate of value.
less reliable
When doing a site valuation, the developer looks at the total _________ square footage of the parcel.
usable
The highest price a buyer is willing to pay and the lowest price the seller will accept for a property is known as what?
Market value
A taxing authority determines the
Assessed value.
When improvements are continually added to a property with no increase to the value of the property, it is called
Diminishing return.
Which of the following problems would be an example of incurable depreciation?
Non-air conditioned office complex
Ian Prazer is assessing Ryan Seller’s property using the sales comparison method. Which of the following statements is FALSE?
Ian’s first step will be to estimate the potential gross income of Ryan’s property.
Using the cost approach to appraise value, if the cost of constructing at current prices, a “precise duplicate” of the subject improvements is used, the appraiser is using the
reproduction cost method.
The nominal value of a property that has reached the end of its economic life is called ___________ value.
Salvage
The cost approach would be most reliable for which of these properties?
County court house
What the market recognizes as “the change in value an improvement makes to a property” is called what?
Contribution
While most appraisals seek to estimate market value the CMA serves a useful purpose to
establish a listing price, or range of prices for a property.
The value of a property as estimated by a taxing authority as the basis for ad valorem taxation is which type of real estate value?
Assessed value
