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Reduction in value due to outdated design or function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
