Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Real Estate > Appraisal 2 > Flashcards

Appraisal 2 Flashcards

1
Q

An appraiser’s first job is to:
A: Appraise The Property
B: Identify The Problem
C: Determine The Scope Of Work
D: Analyze Data

A

B: Identify The Problem

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The acronym “URAR” stands for:
A: Uniform Residential Appraisal Report
B: Utah Real Appraisal Report
C: Utah Residential Appraisal Report
D: Uniform Real Appraisal Report

A

A: Uniform Residential Appraisal Report

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Which of the following are NOT approaches an appraiser uses in determining an opinion of value:
A: Market Data
B: Cost Reproduction
C: Income
D: Gross Rent Multiplier

A

D: Gross Rent Multiplier

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The appraisal approach that allows for the comparison of comparable properties in order to estimate value is called the:
A: Sales Comparison Approach
B: Cost Approach
C: Income Approach
D: Depreciation Approach

A

A: Sales Comparison Approach

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

URAR

A

Uniform Residential Appraisal Report

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Sales Comparison Approach

A

Using comparable sales in the market
area to derive an opinion of value.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Sales Comparison Approach Process

A

Gets The Order > Pull County Info > Pull The Listing >
Gather All Data > Call Agent Schedule Appt Go To Home > Inspect Inside/Outside Condition Of The Home > Measurements > Additions > Repairs Updates > Comparable’s In The Area Of The Home

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Sales Comparison Criteria

A
  • One Mile Radius
  • Style Of Home
  • Characteristics
  • Square Footage
  • Sold Properties -90 Days Back Best
  • Gross Living Area (GLA) Adjustments
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Gross Living Area

A

GLA everything above grade

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Adjusted Value

A

The value that the Appraiser assigns derived off the data they collect.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Opinion of Value

A

is based off of sold data

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

The appraisal approach that takes into account reproduction or replacement cost in order to estimate value is called the:
A: Sales Comparison Approach
B: Cost Approach
C: Income Approach
D: Depreciation Approach

A

B: Cost Approach

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Cost Approach

A

takes into account reproduction or replacement cost in order to estimate value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Income Approach

A

Based on the present right of future. Used for properties that generate income and investment
properties.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Cost Approach Process

A

Primarily with new construction and commercial. Gets the replacement costs by cost breakdown every
single thing that goes into the house/building.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Cost Approach Criteria

A

→ Site Value by use extraction or allocation
→ Improvements
→ Estimated land value and depreciation
→ As is site improvements
→ Cost estimators - price per square foot figures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

An appraiser needs to take which of the following into consideration when utilizing the Cost Approach:
A: Estimated Land Value Less Deprecation
B: Comparison Of Comparable Properties
C: Cost Of Construction
D: Both A & C

A

D: Both A & C

18
Q

The loss of value for any cause can also be referred to as:
A: Depreciation
B: Deterioration
C: Equity
D: Boot

A

A: Depreciation

19
Q

Appraiser Alan has been asked to appraise a home with five bedrooms and one bathroom. Alan will most likely reduce the value of this home based on its:
A: Functional Obselesence
B: External Obselesence
C: Highest And Best Use
D: Physical Deterioration

A

A: Functional Obselesence

20
Q

Reproduction vs Replacement

A

Reproduction
The cost to restore a historical home as it
was using modern materials.

Replacement
The cost of replacement if the property
were completely destroyed.

21
Q

Depreciation

A

The value that the Appraiser assigns derived off the data they collect.

22
Q

Deterioration

A

Economic age life, major repair needed as in a roof, or like a 40 year old home where nothing has been
done to it.

23
Q

Functional Obsolescence

A

It is something that decreases the functionality of the home. As for example, having to go through a
bathroom to get to a dining room.

24
Q

External Obsolescence

A

Something in the immediate area, such as, a busy street, train tracks, airports, something that will deter a
buyer buying the home.

25
Q

The approach to value that is based on the present right to future income is called the:
A: Income Approach
B: Cost Approach
C: Sales Comparison Approach
D: Gross Rent Multiplier

A

A: Income Approach

26
Q

The rate of return a property will produce on an owner’s investment is called the:
A: Annual Net Operating Income
B: Cap Rate
C: Annual Gross Income
D: Gross Rent Multiplier

A

B: Cap Rate

27
Q

An appraiser would NOT use which of the following in applying the income approach?
A: Index Method
B: Accrued Depreciation
C: Annual Net Operating Income
D: Annual Gross Income

A
28
Q

Income Approach Process

A

Rent estimated value of rent schedule using rental comparables for residential properties that generate and use gross rent multiplier, rent schedule (similar to sales approach).

29
Q

Capitalization Rate

A

Also known as, Cap Rate. The income it generates indicates a rate of return a property will produce
on an owner’s investment.

30
Q

Gross Rent Or Gross Income Multipliers

A

Take the estimated rent and divide into the sales prices and gives you the gross rent multiplier. Always requested with income generating properties.

31
Q

Appraisal

A
  • An appraisal can help you understand and decide what and how to renovate the property

There are several components that are considered when conducting an
appraisal process. Lets discuss a few of them:
* The Neighborhood
* The condition of the home
* Trends within the area
* The foundation of the home
* Comparable sales
* Exterior material of the home

A appraisal is NOT the same thing as an inspection
A home inspection is a detailed report of the home’s condition
Remember, an appraiser will be looking at your neighborhood and
comparable sales when conducting an appraisal
* There are several factors that can drive the value of the home up or down. The main focus of an appraisal is ALL about a home’s current
condition

32
Q

When value is created by the expectation that something is going to happen, this is an example of the principle of:
A: Conformity
B: Competition
C: Change
D: Anticipation

A

D: Anticipation

33
Q

An appraiser has been asked to provide an opinion of value on a church. The approach that the appraiser will most likely use is the:
A: Income Approach
B: Cost Approach
C: Sales Comparison Approach
D: Gross Income Multiplier Method

A

C: Sales Comparison Approach

34
Q

An appraiser has been asked to provide an opinion of value on a shopping center. The approach that the appraiser will most likely use is the:
A: Income Approach
B: Cost Approach
C: Sales Comparison Approach
D: Gross Income Multiplier Method

A

A: Income Approach

35
Q

An appraiser has been asked to provide an opinion of value on a vacant lot. The approach that the appraiser will most likely use is the:
A: Income Approach
B: Cost Approach
C: Sales Comparison Approach
D: Gross Income Multiplier Method

A

C: Sales Comparison Approach

36
Q

An appraiser has been asked to provide an opinion of value on a new single family residence. The approach that the appraiser will most likely use is the:
A: Income Approach
B: Cost Approach
C: Sales Comparison Approach
D: Gross Income Multiplier Method

A

C: Sales Comparison Approach

37
Q

An appraiser has been asked to provide an opinion of value on a 60 unit apartment complex. The approach that the appraiser will most likely use is the:
A: Income Approach
B: Cost Approach
C: Sales Comparison Approach
D: Gross Income Multiplier Method

A

A: Income Approach

38
Q

An appraiser has been asked to provide an opinion of value on a mega plex movie theater. The approach that the appraiser will most likely use is the:
A: Income Approach
B: Cost Approach
C: Sales Comparison Approach
D: Gross Income Multiplier Method

A

A: Income Approach

39
Q

The principle that says that an improvement must contribute its cost to the value of the property is:
A: Competition
B: Contribution
C: Progression
D: Regression

A

B: Contribution

40
Q

An appraiser would most likely use which type of appraisal report for a commercial project:
A: Letter Form
B: Short Form
C: Narrative
D: Comprehensive

A

C: Narrative

41
Q

Appraiser Adam is appraising a vacant lot. The first principle Adam will use to determine an opinion of value is:
A: Defining The Problem
B: Substitution
C: Conformity
D: Competition

A

B: Substitution

Real Estate (52 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions