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IAAO 101 > Chapter 4 > Flashcards

Chapter 4 Flashcards

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1
Q

The major underlying premise and the sales comparison approach is that the market value of the property is related to the prices of a comparable Competitive properties recently sold in the marketplace

A

Fundamental premises

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2
Q

This is the underlying principle in the adjustment process of a sales comparison approach

A

Contribution

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3
Q

Steps in applying to the sales comparison approach

A

Identify the property to be appraised

Determine the property rights to be appraised

Defined the purpose and function of the appraisal

Specify the date of appraisal

Defined the type of guy

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4
Q

The order of adjustments

A

Financing

Market conditions equals time of sale

Location and other physical characteristics

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5
Q

To be considered only when other methods are not available cannot be used to determine market conditions

A

Depreciated cost

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6
Q

Market condition using resells

A

The current sale minus the prior sale equals the overall dollar amount of change

The overall dollar of change divided by the prior sale equals a percentage of change

The percentage of change divided by the number of months between cells provides the average percentage of change per month

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7
Q

The fewest total may be attributed greater accuracy and given more weight is

A

Comparable properties

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8
Q

The value of the property tends to be set by the price it would be paid to acquire a property of similar utility and desirability within a reasonable amount of time

A

Principle of substitution

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9
Q

The underlying principal in the adjustment process and the sales comparison approach

A

Principle of contribution

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10
Q

The major principal and the sales comparison approach holds that with the relationship between a property and it’s environment must be in ________\for a property to reflect it’s optimum market value

A

Balance

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11
Q

A major advantage to the sales comparison approach is that it reflects the actions of _____________ and_______\in the market

A

Buyers and sellers

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12
Q

Do you need a comparison that would be applicable to family residential property is the

A

Price per square foot of gross living area

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13
Q

A unit of comparison that would be applicable to agriculture farm land or larger role residential checks would be

A

Price per acre

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14
Q

For comparable items that should be considered

A

Similar financing
Location
Economic characteristics
Condition of sales

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15
Q

This method of determining adjustments in the sales comparison approach cannot be used to determine market conditions

A

Depreciation cost

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16
Q

A cardinal rule in the sales comparison approach holes that all adjustments are made to the _______property and never to the ______\

A

Comparable

Subject

17
Q

This principle states that market value is never constant because of physical governmental social and economic forces are at work affecting the property

A

Principle of change

18
Q

Win for forces environmental governmental social and economic are in balance the market achieves a temporary state of

A

Equilibrium

19
Q

This is used primarily in single property appraisal requires a sale properties to be identical and I’ll attributes except the one being measured

A

Paired sales

20
Q

The sales comparison approach usually ________be used to value special purpose or one of a kind properties

A

Cannot

21
Q

In the sales comparison approach step two is data collection and verification. This requires the appraiser to collect and verify General _______\and comparative data

A

Specific

22
Q

The unit of comparison that is generally used in value in office properties is the

A

Price per square foot of the next rental area

23
Q

Price per animal unit might be the appropriate unit to use in the valuation of

A

Agricultural pasture land

24
Q

This is not included in the cost of manual in the inventory a physical characteristics for a building

A

Location

25
Q

The result of a diminished utility within the building is

A

Functional obsolescence

26
Q

The cost estimation method is considered the most accurate but it’s also the most consuming

A

Quantity survey method

27
Q

When the interaction of supply and demand is being analyzed which of the following influences demand

A

Local services

28
Q

Not a characteristic of cost

A

Land value

29
Q

Indirect cost consist of

A

Engineering fees
Real estate taxes during construction
Insurance

30
Q

The method of estimated cost is the easiest fastest and most widely used method of estimated cost

A

Comparative unit

31
Q

An indirect method of measuring depreciation is the

A

Sales comparison method

IAAO 101 (5 decks)

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