Apraisels

Question 0

Band of investment approach

Answer 0

(NOI) Net operating income divided by the investors capitalization rate equals value

Question 1

Book value

Answer 1

Is the depreciation cost basis. For accounting and tax purposes, the book value is used by corporations

Question 2

Gross rent multiplier

Answer 2

The gross rent multiplier is determined by dividing the average selling price by the annual income 300÷30 equals gross multiplier of 10, gross multiplier of 10×40,000 = 400,000

Question 3

USPAP

Answer 3

uniform standards of professional appraisal practices

Question 4

Theory of distribution

Answer 4

The four factors include land, labor, capital and management. Property value is at the highest if these factors are balanced

Question 5

Cost approach

Answer 5

The cost approach is preferable when appraising unique properties

Question 6

Highest and best use

Answer 6

Produces the greatest value over all alternative uses

Question 7

Elements of value

Answer 7

Utility, scarcity, and demand all elements of value

Question 8

Market data

Answer 8

The market data approach is essential in almost every appraisal

Question 9

Reconciliation

Answer 9

Is the process of applying all three methods of appraisal approaches

Question 10

Real estate

Answer 10

Is physical tangible and inmobile

Question 11

Physical obsolescence

Answer 11

Wear and tear would be physical obsolescence

Question 12

Gross lease

Answer 12

Is a lease in which the rent includes all the operating expenses to a tenant

Question 13

FIRREA

Answer 13

Stands for financial institutions Reform recovery, and enforcement act of 19/89 or the bailout bill that established new regulations to become an appraiser and develop an appraisal report

Question 14

Cost approach

Answer 14

This method is used because damage would be determined by the replacement cost

Question 15

Appraisal reports

Answer 15

Appraisal reports may be in writing all verbal but must always be in conformance with uniform standards of professional appraisal practice. USPAP

Question 16

Three types of properties

Answer 16

The three types of properties include real estate, real property, and personal property

Question 17

Capitalization rate

Answer 17

Cap rate is an analysis of how much investors are willing to spend in a certain neighborhood in return for a certain amount of income

Question 18

Appraisar

Answer 18

At minimum an appraiser must hold an appraisal license although many banks preferred certification

Question 19

Effective gross income

Answer 19

Effective Gross income is gross rents less an amount for vacancy and collection expenses

Question 20

URAR forms

Answer 20

Uniform Residential Appraisal Report and is required by various agencies and organizations.( Single - family residential appraisals are reported on this form.

Question 21

Sales, income, and cost approaches

Answer 21

These three approaches are required by the US government as a basis for valuation and final mythology

Question 22

Market or sales data approach to appraisal

Answer 22

Sell prices of comparable properties are adjusted match the specifications of the subject property

Question 23

Capitalization approach

Answer 23

Also known as the income approach

Question 24

Formula for determining the value of investment property

Answer 24

Net operating income is divided by the appropriate capitalization rate to arrive at the value of the property (Net operating income divided by Capitalization rate= Value)

Question 25

Real property

Answer 25

Real property includes rights, interests, and benefits that are inherited with real estate

Question 26

An appraisal report must be presented

Answer 26

The client dictates how the appraisal will be delivered. It could be verbal, such as court testimony services, or maybe In writing

Question 27

Market value

Answer 27

Market value is affected by supply and demand of the marketplace, which includes the number of buyers and sellers at the time of the appraisal

Question 28

Comps

Answer 28

Comps short for comparables meaning other like kind properties sales in the neighborhood that could assist in establishing the market value of the subject property

Question 29

All appraisal reports must be

Answer 29

Appraisal reports may be in writing or verbal but must always be in conformance with uniform standards of professional appraisal practice. USPAP

Question 30

In arriving at the final opinion of value, the appraiser

Answer 30

The appraiser does not average. He will analyze and place the weight on the most appropriate approach

Question 31

If investor was using factors of annual gross income average selling prices of properties in a community, this would be an example of

Answer 31

Gross rent multiplier would be the method utilizing these seconds