Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

REB Notes to Remember > Basic Real Estate Appraisal > Flashcards

Basic Real Estate Appraisal Flashcards

1
Q

Presence of pollutant in the area

A

Environmental factors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Demand for an aging population.

A

Social factors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Value to a specific investor with a specific plan for the property.

A

Investment value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Value used on property for tax purposes.

A

Assessed value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

All property value is created by the of the future benefits the property will provide.

A

Anticipation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

The idea that nothing remains the same.

A

change

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

If that building is a success other builders are likely to follow with more office buildings until the last office building a builder erects remains partially vacant because the suppliers have created a surplus of office space.

A

Competition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

The whole is sometimes greater than the sum of its parts.

A

Plottage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

That a buyer will try to pay as little as possible for the property that meets the buyer’s needs.

A

Substitution

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Outmoded design in older structures or unacceptable design in newer structures usually points to a type of depreciation.

A

Functional obsolescence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Estimating depreciation is a way to calculate depreciation caused by wear and tear on the structure that presumes that structures wear at the same rate each year.

A

Straight line method

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Analyzes the future financial benefits of a piece of real estate and converts it into an estimate of present value.

A

Income approach

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

The income that the building generates when rented at 100 percent occupancy.

A

Potential gross income.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

The result of subtracting the vacancy and collection loss from potential gross income.

A

Effective gross income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

The process of analyzing and weighing the results of the various approaches as applied to an appraisal problem.

A

Reconciliation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Valuation approach use in the single family homes.

A

Sales comparison approach

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Value of superior property is adversely affected by the value of inferior property.

A

Regression

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

The key criterion in the valuation of real property or personal property.

A

UTILITY

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Cost to create a virtual replica of the existing structure.

A

REPRODUCTION

20
Q

Cost of constructing a structure with comparable utility.

A

REPLACEMENT

21
Q

Very open and most transparent method of selling property.

A

Auction sale

22
Q

The seller is under financial or other pressure to sell quickly.

A

Forced Sale

23
Q

The amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.

A

FAIR VALUE

24
Q

An amount above the Market Value that reflects particular attributes of an asset that are only of value to a Special Purchaser.

A

SPECIAL VALUE

25
Q

Additional element of value created by the combination of two or more interests where the value of the combined interest is worth more than the sum of the original interests.

A

Synergistic value

26
Q

Describes a situation where an entire business is transferred as an operational entity.

A

Going concern value

27
Q

The present value of the future cash flows expected to be derived from an asset or cash- generating unit.

A

VALUE IN USE

28
Q

In the absence of sufficient direct market evidence, acceptable method of arriving value of specialized property.

A

DRC

29
Q

Resulting from external influences may affect the value of the asset.

A

Obsolescence

30
Q

Individual properties, such as hotels, fuel stations, and restaurants that usually change hands in the marketplace while remaining operational.

A

Trade Related Property

31
Q

The process of analyzing sets of property and market data to determine the specific parameters operating upon a model.

A

CALIBRATION

32
Q

Applies the basic economic principle that a buyer will pay no more for an asset than the cost to obtain an asset of equal utility, whether by purchase or by construction.

A

Cost approach

33
Q

Refers to a price expressed in terms of money payable for the asset in an arm’s length market transaction.

A

Estimated amount

34
Q

Establishes that each party is motivated to undertake the transaction, but neither is forced or unduly coerced to complete it.

A

Without compulsion

35
Q

Method of land valuation in the absence of vacant land sales, whereby improvement values obtained from the cost model are subtracted from sales prices of improved parcels to yield residual land value estimates.

A

Abstraction method

36
Q

The distribution of the appraised value of the property between land and building.

A

ALLOCATION

37
Q

The period of time over which the structure may reasonably be expected to perform the function for which it was designed or intended.

A

USEFUL LIFE

38
Q

Conditions and assumptions under which appraisal is made.

A

Limiting condition

39
Q

Statement that appraisers, in their professional capacity, personally conducted the appraisal in an objective manner.

A

Certification of value

40
Q

Risk due to uncertainty in rent, vacancies and operating expenses.

A

Business risk

41
Q

Risk due to uncertainty in future interest.

A

Interest risk

42
Q

Land that has been improved for specific purpose.

A

SITE

43
Q

Prepared the first documented valuation manual in Ireland.

A

Sir William Petty

44
Q

Identify the market supply and demand of a particular product

A

MARKET ANALYSIS

45
Q

It assumed that deterioration and wear occur at a constant average annual rate

A

Straight line depreciation

46
Q

Poor layout is an example of .

A

Functional obsolescence

REB Notes to Remember (9 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions