Key Content (Ch.3) 14%

Question 1

Elements of Value

Answer 1

Demand ( # of buyers for the property)
Utility (propertys possible uses)
Scarcity (availability of similar properties)
Transferability (ability to transfer title with no encumbrances)

Question 2

Influences on Value

Answer 2

Physical
Economic
Government
Social

Question 3

Principle of Change

Answer 3

Hold that property is constantly in a state of change. (life-cycle)

Question 4

4 Stages of Life Cycle

Answer 4

Development
Stability
Decline
Renewal

Question 5

Regression

Answer 5

Value of property will be negatively affected by value of other properties in neighborhood

Question 6

Progression

Answer 6

Value of property will be positively affected by value of other properties in neighborhood

Question 7

Property appraising using the income approaches include;

Answer 7

Apartments
Offices
Industrial buildings
Commercial units
Other income producing property

Question 8

Types of appraisal reports;

Answer 8

Short form (in form using checks and explanations)
Letter form ( brief written report)
Narrative report (extensive written report, which belongs to whom ever pays for it)