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1
Q

Surplus land

A

Additional size (which is more than standard) doesn’t provide more utility. For example a standard size lot of 120 feet deep myself for $8 per sq. foot if a lot is 160 feet deep then the extra depth of 40 feet may only be worth $4 dollars per sq. foot the appraiser must be able to support these rates by reference to market sales data collected during their investigation.

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2
Q

Real Estate Appraisal

A

Estimate the TYPE of VALUE of a PROPERTY for SPECIFIC

PURPOSE @ a SPECIFIC DATE

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3
Q

Most common value in REAL ESTATE APPRAISAL?

A

MARKET VALUE

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4
Q

Real estate

A

Physical ASSETS

LAND + BUILDINGS

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5
Q

Real Property

A

The LEGAL RIGHTS that is ATTACHED to land.

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6
Q

Can REAL PROPERTY be touched?

A

NO

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7
Q

Can REAL PROPERTY be appraised and sold?

A

YES

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8
Q

What is a Physical entity that is IMMOBILE and TANGIBLE?

A

REAL ESTATE

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9
Q

A LEASE OR EASEMENT IS Real Property or Real estate

A

REAL PROPERTY

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10
Q

REAL ESTATE APPRAISAL

A

Estimate the Type of Value of a property for

SPECIFIC PURPOSE and SPECIFIC DATE

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11
Q

What are 3 Main Categories of Appraisal Practice.

A
  • FEE APPRAISER
  • INSTITUTIONAL
  • GOVERNMENT
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12
Q

Example of a INSTITUTIONAL APPRAISER?

A
  • Mortgage Loans

* Advise on Purchase of Investment Property

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13
Q

Characteristics of a Land/Site

A
  • IMMOBILITY
  • DEVELOPMENT
  • DURABILITY
  • DIVISIBILITY OF OWNERSHIP
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14
Q

What are the 2 terms related to VALUE

A

Objective Value:
Property based solely on the COST

Subjective value:
Value in the MINDS of Buyers and Sellers. What they PERCEIVE something to be worth

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15
Q

Price definition

A

Is WHAT YOU PAY

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16
Q

VALUE

A

Is what you Buy

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17
Q

What 4 Factors make up value?

A 
Supply 
1 UTILITY
2 SCARCITY 
Demand 
3 DESIRE
4 EFFECTIVE PURCHASING POWER
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18
Q

Do Appraisers value CHATTELS?

A

No

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19
Q

Stoves, Fridge, washer and dryer are examples of what in a home. Fixture or Chattel?

A

Chattel

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20
Q

EFFECTIVE PURCHASING POWER

A

Low interest rates and innovative Financing make buying easier and cheaper

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21
Q

T or F

Does CUSPAP dictate form, format, and style of reporting?

A

FALSE, these are determined by the users and appraisers.

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22
Q

T or F

Is a FORM REPORT most commonly used in Mortgage Financing for Residential properties?

A

True

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23
Q

What ha called the VALUE considering alternative uses?

A

HIGHEST AND BEST USE

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24
Q

What kind of Value determines the value of a property as it is currently used or for a specific use.

A

USE VALUE

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25
T or F Is INTENDED USE an important concept for both CUSPAP and First Principles of Value?
True
26
The Value
The value to be determined in an appraisal depends upon the PURPOSE and INTENDED USE the use of the appraisal
27
Use value
Is the value of a property as it is currently used
28
True or false Our trade fixtures regarded in law as part of the real estate in appraising a real property?
Foss trade fixtures are not real estate and dad with the rights of real property ownership a trade fixture is to be removed by the tenant when the lease expires an example of a trade fixture is a baker having a fancy oven in their lease bakery.
29
True or false | Value is never a fact but always an opinion of the worth of a property at a given time
True
30
6 Steps of the valuation process
1. Identify the problem 2. Collect and analyze the data 3. Apply the applicable approaches 4. Reconcile their Approaches used 5. Write a final reconciliation 6. State your estimated opinion of value
31
What is Marketability study?
``` A marketability study is founded on analysis of the four factors of UTILITY SCARCITY DESIRE EFFECTIVE PURCHASING POWER that create value. ```
32
Short-term capture is referred to as ______________ whereas long-term capture is referred to as__________
Absorption, | Share of the market
33
Legal nonconforming use
If the store is badly damaged more than 50% is destroyed or vacant for certain period of time that any new building would have to conform to the current zoning requirements.
34
True or false Zoning is critical to determining the highest and best use of a property and should be investigated carefully specially were changes are taking Place.
True
35
Excess land add value and if so give an example
Yes. The extra line on its own or by assemblage with adjoining properties be used to create additional lots for example if you have 100 foot wide lots they can be subdivided into 3 of 33’ front foot wide lots
36
Residential property is assessed at $350,000 the property mill rate for the residential class is established at 9.067 mills for every $1000 value the owner pays $9.67 in taxes the tax payable Is calculated as follows
Property taxes= Mill Rate x Assessed Value / $1,000 = 9.067 x $350,000 / $1,000 = $3,173.45
37
Paired sales method when determining a value of a property with extensive landscaping
This approach involves finding two identical or similar sales one with average and one with better than average landscaping the difference should represent the value of the above average landscaping.
38
How do you find the value of not New (Mature) Landscaping on a property?
Use RESIDUAL APPROACH
39
What is RESIDUAL APPROACH?
Find sales of comparable properties and deduct the site value and depreciated value of the buildings. Any residual figure might indicate the depreciated value of the landscaping.
40
True or false | The Ultimate test of FUNCTIONAL UTILITY is Marketability
True
41
True or false | QUANTITATIVE ANALYSIS develops adjustments as dollar percentage or decimal amounts quantities
True
42
True or false Qualitative analysis makes non-numerical adjustments such as rating comparable properties as superior or inferior to the subject ranking them and then placing the subject within the rank
True
43
What are some examples of qualitative techniques In Direct comparison approach
Relative comparison analysis superior, inferior Ranking analysis Personal interviews
44
What are some examples of quantitative techniques in the direct comparison approach
``` P Paired data analysis Group data analysis Statistical analysis Secondary data analysis Cost analysis Trend analysis graph analysis ```
45
Replacement cost
Modern equivalent
46
Reproduction cost
Exact replica
47
Examples of incurable physical Depreciation
Decaying foundation | Carpeting that is only half worn out
48
Example of physically curable depreciation
Old paint on a house
49
The use of an Appraisal is determined by_______ needs which will determine the ______ and ________ of work and the fee to be charged
Client’s Type Amount
50
First Principles of Value
``` Problem identification Property content Legal Considerations Highest and Best Use Economic Analysis ```
51
Real Estate
It is Tangible (Land+Buildings) and immobile.
52
``` Appraisers may do the following: ESTIMATE ________ Consult on real ______ matters EXPERT_________ Review __________ Reports ```
VALUES estate WITNESS Appraisal
53
Are property values constant all the time
No
54
What is the ratio to determine AGE/LIFE METHOD
EFFECTIVE AGE/ECONOMIC LIFE
55
The actual age of a building may be shorter or longer than it’s EFFECTIVE AGE by determining the __________ of the property.
CONDITION
56
If the Property is in Great condition will the EFFECTIVE AGE be > or < the ACTUAL AGE
< (Less than) it looks younger than it’s actual age
57
What is the meaning of UTILITY
The ability of a product to satisfy human want need or desire
58
Functional | Obsolescence
This represents a loss of utility where an item does not perform its proper function
59
Market value is
The amount of money a property should sell for on the open market
60
Which of the following types of value reflects a subjective relationship between a particular investor and a given investment 1) special number 2) lending number 3) market number 4) going concern
1) special
61
* Helps the appraiser interpret the market forces that affect the subject property. * Identifies the use or uses a watch the final opinion is based. * Helps the appraiser identify comparable properties. What are these characteristics is which kind of analysis
Highest and best use analysis
62
True or false | Does a data array grid only present property data not the adjustments necessary.
true
63
Which of the land surveying methods was developed as an outgrowth of the rectangular survey system and can be used to simplify the location description of small parcels?
Lot and block system

Appraisal Class (2 decks)

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