Appraisal - Study Sheet

Question 1

Cost Approach

3 components of depreciation

Answer 1

Physical
Functional
External

Question 2

Economic
Neighborhood Life Cycle
4 components

Answer 2

Growth
Stability
Decline
Renewal

Question 3

Highest and Best Use

4 Tests

Answer 3

Legally Feasible
Physically Possible
Financial Feasible
Maximum Productive

Question 4

Value

4 Elements

Answer 4

D - Demand
U - Utility
S - Scarcity
T- Transferability

Question 5

Value

4 Forces

Answer 5

Economic
Social
Governmental
Environmental

Question 6

Economic

Production - 4 agents

Answer 6

Land
Labor
Capital
Entrepreneurship

Question 7

Real Estate

6 Bundle of Rights

Answer 7

The right to use and occupy the real property
The right to sell it part or in whole
The right to leave it to someone, give away
The right to rent/lease
The right to transfer by contract
The right to do nothing at all

Question 8

Math

Sinking Fund Factor

Answer 8

The amount and frequency of pmt that must b e deposited to achieve a specified financial goal over a specified amount of time

Question 9

Math

Amortize

Answer 9

The period of pmt schedule necessary, including interest and principle, to reduce the debt with equal payment

Question 10

Encumbrances

Answer 10

Liens (Money related)

Encumbrances (use or physical condition is affected)

Question 11

Encumbrances - Liens

Answer 11

Tax Liens
First Mortgage
Equity Loans
Mechanics' Liens
Judgements
Attachments

Question 12

Encumbrances

Answer 12

Leases
Easement (Appurtenant and Gross)
Encroachments
Deed restrictions
Reservations

Question 13

Real Property

Answer 13

land improvements and certain rights/interests/benefits

Cannot be moved

Question 14

Fixture

Answer 14

one time was personal property, but was attached to the real estate in a permanent manner

Question 15

Trade Fixture

Answer 15

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