Chapter 16 Flashcards
When an appraiser uses the phrase “effective age,” he is referring to
- the number of years since improvements were made.
- the age of the property based on its condition.
- the estimated total life of an improvement.
- the number of years during which the property will yield a worthwhile return on investment.
the age of the property based on its condition.
Peeling paint on a home is an example of
- inferior product selection.
- economic obsolescence.
- functional obsolescence.
- physical deterioration.
physical deterioration
The three distinct boards of TAF are
- Appraisal Qualification Board, Appraisal Standards Board, Appraisal Practices Board.
- Appraisal Certification Team, Temporary Certified Appraisers, Appraisal Communications Committee.
- Appraiser, Appraiser Qualifier, Appraisal Law.
- Appraisal Brokers, Appraisal Oversight, and Appraisal Training.
Appraisal Qualification Board, Appraisal Standards Board, Appraisal Practices Board.
The decision to convert a two-family residential home into a commercial office, housing a real estate firm, and an insurance company is an example of what appraisal principle?
- Plottage increments
- Highest and best use
- Anticipation
- Regresssion and progression
Highest and best use
The gross rent multiplier uses
- sale price and monthly rental rates.
- sale price and depreciation.
- sale price and budget costs.
- sale price, monthly rental rates and fixed costs.
sale price and monthly rental rates.
Which BEST describes the principle that a home maintains its highest value by being in a neighborhood with similar-type housing?
- Competition
- Highest and best use
- Regression and progression
- Conformity
Conformity
The first step in an appraisal is to
- compare sold properties.
- define the problem.
- analyze the neighborhood.
- gather data.
define the problem.
Which principle is the market data approach based on?
- Conformity
- Change
- Anticipation
- Substitution
Substitution
External obsolescence in a property is generally
- a result of poor maintenance.
- due to architectural faults.
- a type of depreciation that is incurable.
- caused by the aging process.
a type of depreciation that is incurable.
Market value is defined by all EXCEPT
- the assumption that the buyer and seller are sufficiently informed.
- the allowance of a reasonable time for market exposure.
- the relation to the price for which the property should sell in the open market.
- the consideration of the price for which the property was last sold.
the consideration of the price for which the property was last sold.
A property valuation provided to a lending institution for distressed properties on the market is a
- real estate appraisal.
- broker’s price opinion.
- short sale analysis.
- All of the above.
broker’s price opinion
