Module 9 Flashcards
The preferred phrase that we use when we refer to the appraiser’s conclusions in an appraisal is called a
value opinion
A value conclusion is always referenced as _______
an opinion rather than an estimate
Market Value is based upon the economic concept of
exchange value.
Market value is expressed as the ___________price. These words must be present in order to define market value. This phrase, however is actually quite recent. The previous working was the highest price paid, which was the standard used by lending institutions until the mid 1980’s.
Most probable
As of a ________date. The appraiser’s report will refer to this component as the effective date of the appraisal.
specified
The _______ date is simply the date of the value opnion.
effective
Effective date can be expressed in one of three ways:
- Retrospective (past)
- Current
- Prospective (future)
An analytical process in which the sale price of a transaction with nonmarket financing or financing with unusual conditions or incentives is converted into a price expressed in terms of cash or its equivalent.
Cash equivalency analysis
The critical issue about cash equivalency is how you analyze market sales. This is because____________________
cash equivalency adjustments are made to the comparable sales used in your analysis. Adjustments are not made to the subject.
Concessions usually result in
artificially inflated sale prices or lease rates
The sale price of a comparable sale is adjusted by __________________
the full amount that a seller concession affected the price.
This book looks at points as to reduce the actually mortgage amount not the interest rate.
Wierd
The fourth component of market value is
Reasonable exposure.
The typical amount of time it takes to sell a similar property. One day or 360 days should raise a caution flag.
Market value is the _______ price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably and for self-interest, and assuming that neither is under under duress.
Most probable price specified date cash equivalent reasonable exposure buyer and seller acting prudently, knowledgeably not under undue duress
When we use the term arms-length transaction we mean_____________
the parties are not related
either through a business partnership or blood relationship.
