Principles Review Flashcards
What is the term…
Real Estate
What is the acreage of a parcel described as N1/2 of the SE1/4 of the NE1/4?
640 x .5 x .25 x .25 =
20 Acres
A characteristic of a “Joint Tenancy Ownership” is?
Right of Survivorship
Which of the following is a “Factor of Value”?
Effective Purchasing Power
DUST
What is the annual debt mortgage of 300,000 paid monthly for 15 years at 8.5% ?
35,450
An encumbrance that is a financial claim against the property and can affect the transfer of title is referred to as
Lien
When performing valuation services, Appraisers have the responsibility for?
Protecting the Public Trust
What type of assignment contains an effective date in the past?
Retrospective
Which mortgage is a guaranteed loan?
VA
What amount must be deposited annually in an account earning 6% interest that compounds annually to accumulate 125,000 in 12 years?
7,409.63
A time and distance relationship between a particular use and supporting facilities, such as between residences and employment is called?
Linkage
What is the act or process of developing an opinion of value?
Appraisal
A local zoning ordinance that prohibits construction of a motel in a certain area of a municipality is an example of ?
Police Power
Seller concessions such as mortgage buydowns or gift inducements in the sale price?
Cash or Cash Equivalents
Buyers and Sellers trade short term money instruments in the ?
Money Market
A retail tenant has agreed to Lease…
The exterior walls are 1 foot thick…
There are 6 pillers that are 2 ft x 2ft…
6640
Real Estate sale prices are set by ?
Supply & Demand
What is an Amortized mortgage with a lump sum payment at the end ?
Balloon
From a statistical perspective building size, acreage, parking spaces, and rentable spaces are all examples of what kind of data ?
Quantitative Data
Township lines, Base lines, Range lines, and Tiers are terms commonly found in what method of legal description ?
Rectangular Survey
If Conventional Financing requires a 20% down payment and the prequalified borrower has 40,000 cash available, what is the maximum price the buyer can afford ?
200,000
A general lien that binds all the assets of an individual debtor to the lien including the debtors property is a ?
Judgement Lien
An example of an “Agent of Production” is ?
Land
What types of investors provide sources of capital for Real Estate markets?
Equity & Debt Financing
A factory is located in a city that assess at 75% of market value. The Mill rate for general taxes is 22 and the Mill rate for school taxes is 24. If the market value of the factory is 2.8 million, what is the effective tax rate?
3.45%
What is the phenomenon in which middle and upper class people purchase and renovate properties in declining urban neighborhoods ?
Gentrification
If an appraiser is unfamiliar with the geographic area involved in an appraisal assignment, the appraiser should ?
Insure the competency issue is satisfied by the end of the assignment
Which principle states that value is created and sustained when the market forces are in “equilibrium” ?
Balance
What are the interest, benefits, and rights inherit in the ownership of “Physical” Real Estate ?
Real Property
Real Estate transferred to another person called a fiduciary, to hold or manage for the benefit of a third party is an example of a ?
Trust
The concept that land cannot be valued on the basis of one use, while the improvements are valued on the basis of another use ?
Consistant Use
A townhouse was sold for 172,500 which was 15% more than was paid for it some years back. What was the original purchase price ?
172,500 / 1.15 =
$150,000
What is the monthly payment of a mortgage of 127,250 paid monthly for 20 years at 9.5% interest ?
$1,186.14
What are the 4 stages in the life cycle of a neighborhood ?
Growth
Stability
Decline
Revitalization
To satisfy competency, an appraiser does not need to be familiar with competency in ?
A clients “Affective Purchasing Power”
In a government rectangular survey system, how many sections does a township contain ?
36 Sections
What is the right of the government to take private property for public use upon the payment of just compensation ?
Eminent Domain
What is the amount that a particular purchaser agrees to pay and a particular seller agrees to receive ?
Price
What rate is used to express the price of money ?
Interest Rate
A measure of central tendencies and statistics that is commonly referred to as a “Arithmetic Average” is called ?
Mean
An example of a neighborhood characterized by homogeneous land use is best described as a ?
District
Intended use, Intended user, Effective date, and Type of value are elements of problem identification that leads the appraiser in determining?
Scope of Work
Cash equivalency in a market value appraisal, accounts for seller concessions by making adjustments to the ?
Comparable sales used in the appraisal
Comps
A lease based on the landlord paying all the operating expenses ?
Gross Rental Lease
Asbestos in a commercial building is an example of which “Force” that influences value ?
Environmental
G.E.S.E.
A house has a market value of 220,000. If the municipality assess at 20% of value and the total tax rate is 151.36 per 1,000 How much are the taxes?
$6,659.84
A group of complimentary land uses is a ?
Neighborhood
Rights that include land, water, and anything attached to the land, either naturally or placed by human hands, are referred to as ?
Surface Rights
Fee Simple estate and Life estate come under the general category of ?
Free Hold estates
A corporation offering shares of stock to perspective tenants in real estate the entity owns, is an example of what type of ownership ?
Cooperative
Co-Op
What economic concept is based on the process of exchange that is not a fact but rather an opinion of the “worth” of a property as of a specific time?
Value
In testing for the highest & best use, what are the first two criteria that appraisers should apply ?
Legally Permissible & Physically Possible
The Right of Possession, The Right to Transfer, and The Right to Lease, are components of the ownership interest known as ?
Bundle of Rights
What is an “Easement in Gross” ?
Encumbrance
A deed used to convey any interest held in a property to the grantee “Without” any warranty of title, is called ?
Quick Claim Deed
How many acres are in a property measuring 100ft x 100ft
100 x100 = 10,000
10,000 / 43,560 =
.23 Acres
The perception that value is created by the “Expectation” of benefits to be delivered in the “Future”, is an example of ?
Anticipation
A partial of land measures 880ft x 792ft, if similar land is worth 22,500 per acre, what is the market value of the subject ?
880 x 792 = 696,960ft
696,960 / 43,560 = 16
16 x 22,500 =
$360,000
A sellers property was listed for sale at 300,000 but the price was reduced to 282,000 due to a slow market condition, what is the percent of price reduction?
300,000 - 282,000 = 18,000
18,000 / 300,000 = .06
6%
Which of the following is not a component of a valid contract?
Contingency Clause
