Section 6 - Chapter 19

Question 1

appraisal

Answer 1

opinion of value based on supportable evidence

Question 2

uspap

Answer 2

uniform standards of professional appraisal practice; appraisal qualifications board basic guidelines

Question 3

cma

Answer 3

competitive market analysis; based on solds, on market, and expireds

Question 4

bpo

Answer 4

broker’s price opinion; less expensive alternaitive to value property

Question 5

4 characteristics of value:

Answer 5

DUST; demand, utility, scarcity, transferability

Question 6

market value

Answer 6

reasonable opinoin of property’s value

Question 7

market price;

Answer 7

actual selling price of a property

Question 8

cost

Answer 8

may not equal either market value or market price

Question 9

anticipation:

Answer 9

value increases or decrases based on future events

Question 10

change

Answer 10

real estate mraket changes randomly

Question 11

competition

Answer 11

interaction of supply and demand

Question 12

conformity

Answer 12

maximum value when home is in harmony with surroundings

Question 13

contribution;

Answer 13

value of any one part measured by the effect on the whole

Question 14

highest and best use:

Answer 14

most profitable single use to which a property may be put

Question 15

assemblage:

Answer 15

process of merging 2 separately owned lots under one owner

Question 16

plottage:

Answer 16

amount that value is increased by successful assemblage

Question 17

regression and progression

Answer 17

lowering or raising of value based on neighbors

Question 18

substitution;

Answer 18

max value of a house set by how much it would cost to buy an equal substitue

Question 19

sales comparision approach:

Answer 19

compare your property to other comps just sold

Question 20

cost approach:

Answer 20

value based on how much to rebuild based on vacant land

Question 21

depreciation

Answer 21

loss in value due to any cause compared to what it would cost to replace today

Question 22

income approach:

Answer 22

value based on present value of rights to future income

Question 23

reconciliation

Answer 23

analyzing and weighing the results of the 3 approaches to finding value