Chapter 21 - Real Estate Appraisal Flashcards
What is the allowable margin of error when providing an appraisal
5 % to 10%
What are the 4 methods of appraisal
- ) Comparative Market Approach
2) Income Approach - ) Cost Approach
- ) Residual Method
What appraisal method is best used for residential and vacant lands / commercial
Comparative / market approach
Which appraisal method is best used for a property generating income - usually commercial
Income / investment approach
Which method of appraisal is best used for unique properties like churches
Cost Approach
What appraisal approach is best used for properties with latent or hidden potential
Residual Method
What is the most common method of approach
Comparative / market approach
What is usually the last method of appraisal approach
Cost method
What method of appraisal would you use if a property was generating income
Investment approach
What appraisal approach would you use for a property that has hidden value - that is not using the property to it’s full potential
Residual Method
Who is the duty of the appraiser lay on?
The lender, not the borrower
Is the appraiser obligated to provide the report to the borrower?
No
