Chapter 13 Flashcards
A property’s most probable price on the open market under normal circumstances in an arm’s-length sale is known as its
market value. page 405
The MOST profitable, physically possible, and legally permissible use of real property is referred to by appraisers as its
highest and best use.
The unit-in-place method is used
to calculate reproduction cost. page 415
The BEST method for valuing residential property is usually the
sales comparison approach. page 411
An exact replica of a structure being appraised determines
reproduction cost. page 414
An important step at the beginning of the appraisal process is to
identify the scope of work. page 409
By which principle will the value of a nonconforming building be enhanced if surrounding buildings are of a higher value?
Progression. page 407
A real estate appraiser’s opinion of property value is usually valid only for
the date given. page 405
A loss in value from any cause is known as
depreciation. page 416
The basis of MOST residential real estate appraisals is the principle of
substitution. page 408
