Appraisal

Question 1

Principal of Contribution

Answer 1

how an additional improvement could affect the values of the overall properties

Question 2

Appraisal Process (7)

Answer 2

1. What’s the purpose for being there?
2. Gather the data
3. Assess the highest and best use
4. Estimate the value of the land
5. Apply the three approaches to value
6. Recon the values from the approaches
7. Compile the report

Question 3

Sales Comparison Approach

Answer 3

1. Identify comparable sales
2. Compare comps to the subject and make adjustments to the comparables
3. Weight values indicated by adjusted comparables for the final value estimate of the subject

Question 4

Cost Approach | Reproduction

Answer 4

Cost of marking a precise replica

Question 5

Cost Approach | Replacement

Answer 5

cost of making a functional equivalent

Question 6

Cost Approach | Steps (5)

Answer 6

1. Estimate land value
2. Estimate replacement cost of improvements
3. Estimate total depreciation
4. Subtract: (cost of improvement - depreciation) = depreciated improvement cost
5. Add land back in (land value + depreciated improvements) = value estimate of property

Question 7

FIRREA

Answer 7

Requires that competent individuals whose professional conduct is properly supervised to perform all appraisals used in federally-related transactions