Chapter 2

Question 1

Value is ______ inherent to the commodity, good or service.

Answer 1

not

Question 2

Value is created in the ____ ___ ____ ___ who make up the market seeking the specific commodity, good or service.

Answer 2

minds of the people

Question 3

When thinking about the value in Real Estate, it utterly important to ____ ____ ___ ___ ____

Answer 3

Understand who the buyer is

Question 4

Define Price

Answer 4

Amount the purchaser agrees to pay and the seller agrees to accept.

The accomplished fact

Question 5

Define cost

Answer 5

“Construction” and production

Can be:

1) Accomplished fact
2) An estimate

Question 6

Define Value

Answer 6

Worth of Future Benefits

MUST BE stated in relation to a particular point in time.

Question 7

Value is qualified based on ______ ______

Answer 7

different usages

Question 8

90% of a Appraiser work is establishing ___ ___

Answer 8

Market Value

Question 9

Market Value

Answer 9

It has to reflect the MASS, NOT what ONE PERSON.

reflects the collective perceptions and actions of a market . . . NOT the preconceived view or vested interest of a particular individual