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New York Real Estate > Chapter 16 > Flashcards

Chapter 16 Flashcards

1
Q

A study by Real estate agent/broker intended to assist an owner in establishing a listing price

A

Comparative market analysis (CMA)

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2
Q

How do you do a comparative market analysis? (3 steps) 

A
  • 3 recent comparable sales (sold)
  • 3 properties currently on the market
  • 3 properties that failed to sell (expired)
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3
Q

An estimate of a properties valuation is done by who?

A

Appraiser

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4
Q

What does an appraiser do?

A

Estimate a property’s value

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5
Q

What are the 3 ways that real estate can be appraised?

A

Sales comparison approach
Cost approach
Income Capitalization approach

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6
Q

Which appraiser approach estimates the value of a property based on the income it generates?

A

Income capitalization approach

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7
Q

What does the income capitalization approach do in terms of appraisers?

A

They estimate the value of a property based on the income that it generates

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8
Q

The present worth of future benefits is?

A

Value

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9
Q

What is it called when the seller is ready to sell, the buyer is ready to buy, and nobody is under pressure?

A

Market value

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10
Q

What is market value?

A

When the seller is ready to sell, the buyer is ready to buy, and no one is under pressure

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11
Q

What kind of approach would an appraiser have to use for a unique physical design like a church?

A

Cost approach

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12
Q

The only approach for insurance purposes used by an appraiser is?

A

Cost approach

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13
Q

When would an appraiser use the cost approach?

A

When comparable sales are few or nonexistent

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14
Q

What is the cost approach used by appraisers?

A

It’s used when comps are few or nonexistent

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15
Q

They study of properties recently sold (comps) 

A

Sales comparison approach

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16
Q

Which approach would an appraiser use when simply studying properties that were recently sold?

A

Sales comparison approach

17
Q

The most likely price that would be paid by an informed buyer one property is widely exposed on the market is known as? (school)

A

The market value

18
Q

When an appraiser performs an appraisal on a subject property where a real estate agent is the listing agent for the seller what happens to the agents role?

A

It becomes more of a passive role during this process

19
Q

School:

The income approach to appraisal is most appropriate for what?
A. A ranchhouse
B. A vacant lot
C. An apartment house
D. A library

A

An apartment house

20
Q

School

The sales comparison approach to appraisal utilizes?
A. Building costs in the area
B. Recent sales prices of similar parcels
C. Asking prices for property on the market

A

Recent sales prices of similar parcels

21
Q

The expression “arm’s-length transaction” is defined as a transaction between who?

A

Relative strangers

22
Q

An example of external obsolescence might be
A. used car lot next-door
B. Poor floor plan
C. Faulty heating system
D. Tenant who will not pay rent

A

used car lot next-door

23
Q

The principle of value that states that two adjacent parcels of land combined into one larger parcel may have a greater value than the two parcels value separately is called ?

A

Plottage

24
Q

An appraiser is asked to estimate the market value of a church. He will give the most emphasis to which appraisal approach?

A

Cost approach

25
Q

The greater the supply

A

Prices fall

26
Q

The amount of goods or services that will be offered in the marketplace in exchange for any given products is
A. Market
B. Cost
C. Value
D. Price

A

Value

27
Q

Goods and services in exchange for…

A

Value

28
Q

How do you appraisers derive value?

A
  • systematic observation of appropriate market data selection
  • variety of value methods
29
Q

The term external obsoletes refers to
A. Faulty floor plan
B. Poor landscaping
C. Wear and tear
D. Loss of value due to issues from factors beyond the property line


A

D

30
Q

What does an appraiser do?

A

Estimate value

31
Q

In the final analysis, selling price for real estate is set by?
A. Seller
B. Broker
C. Buying public
D. CMA

A

C buyers

New York Real Estate (18 decks)

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