Appraisal Flashcards
Reduction in value due to outdated design or function
Functional obsolescence
When performing the cost approach, estimated improvement cost new is determined using
Replacement if reproduction cost
Appraisal method used on schools, court houses, historic buildings.
Cost approach
Method of estimating value based upon the present value of future benefits
Income approach
Appraisal approach based on principal of substitution
Sales comparison approach
What is not a federal deduction on income tax for commercial property
Reserves for replacement
External obsolescence is also called
Locational or economic.
Factors affecting value
A CMA must be disclosed as NOT being an _________? If performed by a Real estate agent
Appraisal
Land is valued by using what method?
Comparable sales
When performing a CMA, how do you adjust comparables to arrive at a listing price?
Adjust up or down to the subject
Difference between assessed and market value
Market is the price someone will pay. Assessed is for ad valorem taxes
Law designed to regulate the informed use of credit
Regulation Z
Closing costs and interest rates for FHA/VA loans versus conventional
Higher points and closing costs, lower interest rate
Servicing a mortgage involves what
Payment collection and record keeping
The market value established by the price at which most buyers would pay is…..
Exchange value
How long does a good faith estimate and special booklet have to be delivered?
3 days after application
Which type of loan is most likely to be assumable by a qualified buyer ?
VA or FHA
What law requires the use of the Closing disclosure or HUD-1v
RESPA
RESPA
Real estate settlement procedures act
Home equity line of credit can be cancelled how long after purchase ?
Within three business days
Federal reserve influences what?
Availability and cost of money and credit
Changes to discount rate cause what to short term rates?
Change in same direction
T/F. The real estate market is fluid and can respond quickly to changes in supply and demand
False
Legal, possible, financially feasible use of a property with the maximum utility is known as?
Highest and best use
Transaction between two unrelated parties
Arms length
