Appraisal Flashcards
Utility, scarcity, transferability are used to determine
Value
When conducting a neighborhood analysis the appraiser is interested in
Economic depreciation
What is an example of economic obsolescence
Air pollution and noise etc.
The Rate and capitalized value are based on
Net income
One smoke and dust in an area are harming the nearby properties this is called
Economic obsolescence
When appraising a special usage property like a church the appraiser would use the
Cost approach
Appraisers are paid based
Time travel and work
When an appraiser is starting an area for growth and decline this is called
Integration in disintegration
The period of time a building is profitable to operate is called
Economic life
When appraising an apartment building the best approach is
Income
A house with four bedrooms and one bathroom is an example of
Functional obsolescence
It’s a building has poor floorplan it is
Functional obsolescence
Does the market approach take into consideration the original purchase price
No
If a cap rate goes up the value goes
Down
When appraising land the appraiser uses the
Market approach
The appraisers job is to
Estimate value
When appraising a 35-year-old high school building the appraiser uses the
Cost approach
When appraising and all the residential home the appraiser uses the
Market approach
Operating expense it would not include
Vacancies and the loss of credit
When using the market approach appraisers do not use
Building permits
The difference between replacement value and present value is
Depreciation
When using the market approach all would be used but
Original cost
When the appraiser uses all three approaches the final step
Re-conciliation
When using the market approach the least important factor is
Property in foreclosure
The income approach, the most important income is
Net operating income
The appraisers first objective is to
Define the problem
At the end of the economic life you
Salvage value
The highest price a property will demand is
Market value
Economic depreciation is always
Incurable
The comps in the area have less features on the subject property the appraiser would add a dollar value to the subject property or comp property
Comp property
Replacement cost and reproduction cost are the same as
Using today’s materials and designs versus new replica
When a property is in need of repair due to neglect the maintenance is called
Deferred maintenance
A successful new homebuilder would be subject to conformity or
Competition
A 100-year-old building with modern fixtures is an example of
Replacement not reproduction
If a 100 acres subdivision is broken into 5 acre lots the property owners would have an easement
Appurtenant
Square footage of residential property is based on
Exterior measurements
The benefits of one property when compared to another is called
Substitution
Is the asking price a factor used in a market analysis of an income producing property
No
