Appraisal

Question 1

State Licensed appraiser

Answer 1

Up to 1M
Or $250k if complex
1-4 residential units

Question 2

Certified residential appraiser

Answer 2

All residential real estate not requiring a development analysis, appraisal, regardless of value or complexity

Question 3

Certified general appraiser

Answer 3

all types of real estate

Question 4

Nature of vale

Answer 4

Demand
Utility
Scarcity
Transferability

Question 5

Fair market value

Answer 5

Willing buyer
Willing seller
Neither is under duress
Sufficient time

Question 6

Cost

Answer 6

Past paid

Question 7

Highest and best use

Answer 7

Is it legal?
Is it possible?
Of the possibilities, what creates the most vale

Question 8

Letter form

Answer 8

Quick easy way to report estimate of Value contains 4 parts to an appraisal, less than a full page.
Statement of value only very accurate still

Question 9

Short form or checklist

Answer 9

Used primarily by lenders, standardized forms.

Question 10

Narrative report

Answer 10

An estimate of value and then gives reasons to justify that. Photos maps etc.
Commercial and industrial
Most comprehensive

Question 11

Essential parts of an appraisal

Answer 11

Date
Property description
Estimate of value
Signature

Question 12

Substitution

Answer 12

No prudent person will pay more than he has to. Basis to comparison approach.

Question 13

Conformity

Answer 13

Value is created on the idea that reasonable similarity is maintained on properties in a given area

Question 14

Balance

Answer 14

Balanced between labor capital management and land

Question 15

Assemblage plottage

Answer 15

Assembling two levels of property to create a useable value.

Question 16

Situs

Answer 16

Preference on location

Question 17

Service property

Answer 17

Church, government buildings

Question 18

Three types of approach

Answer 18

Market data,
Cost
Income

Question 19

Cost approach types

Answer 19

Cost reproduction
Cost replacement
Formula

Question 20

Methods of determining cost

Answer 20

Quantity surveys
Unit in place
Cubic foot method
Square foot method

Question 21

Quantity survey

Answer 21

Materials + labor +management + profit =value

Question 22

Unit in place

Answer 22

Appraiser determines the cost of components or estimates of subcontractors
How much would an arch cost and how much would the sub charge to place it?

Question 23

Cubic foot

Answer 23

Warehouse is most appropriate here.

Question 24

Square foot method

Answer 24

Most common method
Marshall and swift subscription
Outside measurements

Question 25

Parts of an appraisal

Answer 25

Date
Description
Estimate value
Signed

Question 26

Cost reproduction approach

Answer 26

How much it would cost to build an exact replica of the building this approach can be difficult and costly since accuracy is important

Question 27

Cost replacement

Answer 27

What does it cost to construct a building having the same utility as the subject property since utility is the key factor the building may vary in nonessential ways

Question 28

Formula approach

Answer 28

Land plus improvements minus depreciation equals value. The cost approach is the only one of the three appraisal approaches, which gives a separate specified value to land.

Question 29

Physical life

Answer 29

How many years since the building was actually built

Question 30

Economic life, or age

Answer 30

How much longer is it estimated that the building can be productively used?

Question 31

Effective age

Answer 31

How many years old is the building when compared to other buildings and it’s condition it can be several years, older, or less than the physical age due to the care that it has received