Chapter 11: Real Estate Appraisal Flashcards
A home having only one bathroom located next to the kitchen suffers from:
functional obsolescence.
Three characteristics of value?
STU
Scarcity
Transferability
Utility
If an appraiser uses more than one approach to value, the process of analysis and weighing of the differing values to determine an opinion of value is known as:
correlation or reconciliation of values.
A capitalization rate incorporates the:
return on land and building, and recapture of building
To appraise a special-use building, an appraiser would most likely use the:
cost approach.
The highest and best use of a property is the use that:
complies with zoning and deed restrictions and that results in producing the greatest net return for the owner.
Which approach to value would an appraiser be concerned with when calculating the present worth of future benefits?
Income approach
The cost method of appraisal uses: (name three)
SQU
- square footage
- quantity survey
- unit in place
The features that usually increase the value of residential property, such as a water view, nice landscaping, quiet neighborhood, etc. are known as __________ .
amenities
Which of the following type of depreciation is always incurable?
Economic obsolescence
Chase bought a lot and constructed a high-quality home valued at $400,000 in a neighborhood of homes valued at $290,000. In appraisal terminology, the home would experience an immediate loss in value due to the principle of __________ .
regression
In a properly developed community, values are upheld by:
conformity to land use objectives.
An appraisal by a certified appraiser is best defined as:
an opinion of value as of a specific date.
Effective age is the term used to define the:
age the appraiser believes to reflect the condition of the improvement.
Sean hired an appraiser to prepare a feasibility study for adding a swimming pool to a 12-unit apartment building. What basic principle of appraising would the appraiser use?
Contribution
Market value is:
the price a willing seller will accept and a willing buyer will pay.
When applying the market data or sales comparison approach to value, an appraiser would most likely use:
sold properties in the same geographic area.
Which of the following statements is correct?
Scheduled Gross Income is the total amount of income a property could generate if it were 100% occupied for 100% of the year.
The method of appraisal that carries the most weight in the valuation of residential property is known as the:
market data approach.
The term depreciation is best defined as loss in value due to: (name three)
FPR
functional obsolescence.
physical wear and tear.
regression.
