Appraisal Flashcards
0
Q
What is a “URAR”?
A
- The Uniform Residential Appraisal Report (URAR) Is the standard form normally used for residential appraisals.
1
Q
Define Appraisal
A
- An estimate or opinion of market value supported by an analysis of relevant properties.
- The determined value is good for only 1 day.
2
Q
What is “USPAP”?
A
- The Uniform Standards of Professional Appraisal Practice.
2. All appraisers are expected to follow the guidelines there within.
3
Q
What are the essential elements of value?
A
⭐️D.U.S.T.⭐️
Demand
a) Desire
b) Affordability
Utility (usefulness)
a) Does the property fill a specific need?
b) Subjective: based on needs of potential buyer.
Scarcity
a) There is a finite supply of land.
b) Land in specific areas may be limited. (scarce)
Transferability
a) Must have marketable title.
b) No value if title cannot be transferred.
4
Q
What are the forces and factors that affect value?
A
⭐️P.E.G.S.⭐️
5
Q
Anticipation
A
.
6
Q
Supply & Demand
A
.
7
Q
Substitution
A
- Most important principle in appraisal.
8
Q
Conformity
A
.
9
Q
Contribution
A
.
10
Q
Competition
A
Z
11
Q
Change (appraisal)
A
.
12
Q
Sales Comparison Approach / Market Data Approach
A
Z
13
Q
Cost Approach
A
.
14
Q
Income Approach
A
S
