Module 6 Appraisal

Question 1

Define: Condemnation

Answer 1

A judicial or administrative proceeding to exercise the power of eminent domain, through which a government agency takes private property for public use and compensates the owner. 60

Question 2

Define: Assessed value

Answer 2

The value set on property for taxation purposes. 225

Question 3

Elements of Value (DUST)

Answer 3

D= Demand
U= Utility
S= Scarcity
T= Transferability

Question 4

Economic principles

Answer 4

• Supply and Demand
• Change
• Substitution
• Highest and best use
• Conformity / Regression
• Contribution Over improvement

Question 5

3 Basic valuation Techniques

Answer 5

• Comparable sale report - Market data report
• Income Approach
• Revenue, Expense and net
• Capitalization technique
• Cost approach
• Deprecation

Question 6

Steps in the appraisal process

Answer 6

1. State the purpose
2. List type of data you need and the sources
3. Gather, record, and verify the general date
4. Analize and interpret the data
6. Prepare the appraisal report.

Question 7

How many years does an appraisal have to keep that record for?

Answer 7

5 Years

Question 8

Define: Market Value

Answer 8

The most probable price that a property would bring in an arm’s-length transaction under normal conditions on the open market. 300

Question 9

Market Price:

Answer 9

Amount of money a buyer is willing to pay in an open and competitive market.