Appraisal - Market Analysis

Question 1

Linkage

Answer 1

time and distance between a particular use and vital services (e.g. employment, shopping, etc)

Question 2

Real Estate Finance - PITI

Answer 2

P - Principal
I - Interest
T - Taxes
I - Insurance

Question 3

Type of Analysis - # of Household

Answer 3

marriages resulting in a new household

Question 4

Type of Analysis - Dissagregation

Answer 4

Supply

Question 5

Market Segmentation

Answer 5

Breaking down a market into submarkets

Question 6

Absorption Analysis

Answer 6

the # of units:
can be sold now
will be needed in the future (based on current & anticipated future conditions)

Question 7

Forecasting

Answer 7

anticipated supply & demand

used to determine the projected absorption rate (competitive analysis and demographic analysis)

Question 8

Existing Space Inventory

Answer 8

primary used for non-residential units

Question 9

Analysis - Competitive supply analysis

Answer 9

general market data

existing and planned construction

Question 10

Debt

Answer 10

Mortgage

Question 11

Equity

Answer 11

Savings, insurance policies, pension funds

Question 12

Mortgage Banker

Answer 12

Originates mortgages
Sometimes using their own funds
Other times selling the loans to investors

Question 13

Discount Point

Answer 13

Mortgage Buydown

Question 14

Specific Data

Answer 14

legal description
tax info
physical characteristic

Question 15

General Data

Answer 15

economic influences

Question 16

Mortgagee

Answer 16

Lender

Question 17

Mortgagor

Answer 17

Borrower

Question 18

Mortgage broker

Answer 18

Originates mortgages

would not use his own funds

Question 19

Purchase Money Mortgage

Answer 19

seller financing

mortgagee = seller

Question 20

Blanket Mortgage

Answer 20

Secured by more than 1 property or land parcel

Question 21

Bridge Mortgage

Answer 21

Temporary type of loan often used for construction

Question 22

Wraparound Mortgage

Answer 22

existing loan + lender gives the buyer another loan

Question 23

Jumbo Loan

Answer 23

Larger than typical loan amount

Question 24

Marketability Study

Answer 24

Linked to a particular and specific property
The analysis of a specific property
Present & future demand of a specific property

Question 25

Conventional Mortgage Loan

Answer 25

Loan is not insured by the government (e.g. FHA or VA)

Question 26

Market Analysis

Answer 26

General information in a market area | Condition for a specific property type

Question 27

Demand Analysis

Answer 27

new household formation

Question 28

Supply Analysis

Answer 28

Competitive properties Existing vacancies in existing properties Comparable and ready substitute

Question 29

Type of Analysis-economic base

Answer 29

the number of services company (present business and employment climate)

Question 30

Exposure Time

Answer 30

BEFORE the effective date

Question 31

Marketing Time

Answer 31

AFTER the effective date

Question 32

Economic Base

Answer 32

Forecasting future economic of an area | Focusing on employment rate