Chapter 13

Question 1

The monetary relationship between properties and those who buy, sell, or use those properties.

Answer 1

Value

Question 2

what a property is worth

Answer 2

Value

Question 3

The amount asked, offered, or paid for a property.

Answer 3

Price

Question 4

The total dollar expenditure to develop an improvement (structure); applies to either reproduction of an identical improvement or replacement with a functional equivalent, not exchange (price).

Answer 4

Cost

Question 5

The most common type of value sought by real property appraisers is

Answer 5

Market Value

Question 6

the major focus of most real property appraisal assignments.

Answer 6

Market value

Question 7

A transaction between unrelated parties under no duress

Answer 7

Arms-length transaction

Question 8

a retrospective opinion developed by the appraiser based on an analysis of past events assuming a competitive and open market

Answer 8

Exposure Time

Question 9

The time a property remains on the market.

Answer 9

Exposure Time

Question 10

Attribution of value to goods or services based on what can be obtained for them in exchange for other goods and services.

Answer 10

Value in exchange

Question 11

Market value is an example of :

Answer 11

Value in exchange

Question 12

The value of a property assuming a specific use, which may or may not be the property’s highest and best use on the effective date of the appraisal.

Answer 12

Value in use

Question 13

Value in use may come into play when appraising

Answer 13

commercial or industrial properties

Question 14

The value of a property interest to a particular investor or class of investors based on the investor’s specific requirements.

Answer 14

Investment Value

Question 15

“A type of value for insurance purposes.”

Answer 15

Insurable value

Question 16

A value that cannot be imputed to any part of the physical property, e.g., the excess value attributable to a favorable lease or mortgage, the value attributable to goodwill.

Answer 16

Intangible value

Question 17

The market value of all the tangible and intangible assets of an established and operating business with an indefinite life, as if sold in aggregate; more accurately termed the market value of the going concern.

Answer 17

Going concern value

Question 18

Monetary worth attributed to features that have no measurable worth in the market but may benefit the public or a specific segment of the public.

Answer 18

Public Interest Value

Question 19

The capital amount at which property is shown on the account books of a corporation or individual.

Answer 19

Book Value

Question 20

The price expected for a whole property, e.g., a house, or a part of a property, e.g., a plumbing fixture, that is removed from the premises usually for use elsewhere

Answer 20

Salvage Value

Question 21

A property owner purchases a lot for $100,000 and pays $400,000 to have a home constructed on it. When it is completed, the owner sells the home for $560,000. The appraiser for the buyer’s mortgage company appraises the home at $525,000. The sales contract for $560,000 represents the __________ of the property.

Answer 21

Price

Question 22

Once stated, price is ________.

Answer 22

fact

Question 23

The monetary relationship between properties and those who buy, sell, or use those properties” is the definition of

Answer 23

Value

Question 24

A property owner purchases a lot for $100,000 and pays $400,000 to have a home constructed on it. When it is completed, the owner sells the home for $560,000. The appraiser for the buyer’s mortgage company appraises the home at $525,000. The appraiser’s opinion of $525,000 represents the _________ of the property.

Answer 24

Value

Question 25

It would take $275,000 to produce a single-family home on the owner’s lot. This $275,000 figure represents the home’s

Answer 25

cost

Question 26

The most common type of value sought by appraisers is

Answer 26

market value

Question 27

Which type of value begins with “the most probable price that a property should sell for…

Answer 27

market value

Question 28

A value that cannot be imputed to any part of the physical property is called ___________ value.

Answer 28

intangible

Question 29

The market value definition says that __________ is allowed for exposure in the open market.

Answer 29

a reasonable time

Question 30

An artificial amount that is constructed using accounting procedures is called ________ value.

Answer 30

book

Question 31

The price expected for a whole property, e.g., a house, or a part of a property, e.g., a plumbing fixture, that is removed from the premises usually for use elsewhere” is the definition of ____________ value.

Answer 31

salvage

Question 32

A bank acquires a property at foreclosure, and they need to sell it very quickly. They ask an appraiser to provide them a value opinion based on a restricted marketing time, and considering they are under extreme compulsion to sell. What type of value is this client asking for?

Answer 32

liquidation value

Question 33

The price expected for a whole property, e.g., a house, or a part of a property, e.g., a plumbing fixture, that is removed from the premises usually for use elsewhere” is the definition of ____________ value.

Answer 33

salvage

Question 34

A property owner has a long-term lease on the property with a tenant who is paying $12 per square foot, but the market rental rate for this space is $8 per square foot. This is an example of

Answer 34

intangible value

Question 35

The most common market value definitions specify payment in terms of ____________ or in terms of financial arrangements.

Answer 35

cash in US dollars