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BUSI 330 Foundations Of Real Estate Appraisal > Unit 1 > Flashcards

Unit 1 Flashcards

1
Q

What is appraisal

A

A formal opinion of value expressed either in written or oral form that is prepared as a result of a retainer.Or an agreement and is intended to be relied upon by identified parties and for which the member assumes responsibility

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2
Q

What is the professional standard for appraisers in Canada?

A

Appraisal Institute of Canada’s Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP)

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3
Q

What is the international standard for appraisers

A

International Valuation Standards (IVS)

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4
Q

What is the difference between real estate and real property

A

Real estate is the physical properties as well as any structures thereon. Real property is the real estate plus the added interest such as caveats, access agreements, easements, and rights of way.

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5
Q

What does appraisal value?

A

Appraisal values real property

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6
Q

What is the bundle of rights

A

The bundle of rights is the term given to the collection of intentible assets that go with the property such as rights of way and the right to use the property undisturbed.

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7
Q

What are the government restrictions on property ownership known as the four powers of government?

A

Taxation
Expropriation
Police power
Escheat

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8
Q

What is escheat?

A

The right of government that gives the province or federal government titular ownership of a property when its owner dies without a will or any ascertainable heirs

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9
Q

What does a finished real estate product consist of?

A

Land
Labour
Capital
Entrepreneurial coordination

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10
Q

What are the four interdependent economic factors that create value

A

Utility
Scarcity
Desire
Effective purchasing time

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11
Q

What is the technical definition of value

A

An economic concept reflecting the anticipation of future benefits

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12
Q

What does CUSPAP stand for?

A

Canadian Uniform Standard of Professional Appraisal Practice

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13
Q

Examples.
Of geographical and environmental land processes

A

Climate topography

distribution of natural resources, population centers, and industry

Trends in economics, population, technology, and culture

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14
Q

Examples of legal land characteristics

A

Easements
Access Rights
Water and mineral rights
Zoning
Title conveyance.

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15
Q

What creates value in land?

A

When ownership rates can be converted into something that is useful, desirable, paid for by consumers, and limited in supply

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16
Q

What is a societal factor of landownership

A

When the rights of an interested group of people conflict with the rights of the owner

17
Q

What are the four concepts of value in land?

A

Geographic
Legal
Social
Economic

18
Q

What are the components of the valuation process

A

Identification of the problem
Scope of work determination
Data collection and property description
Data analysis
Land value opinion
Application of the approaches to value
Reconciliation of value indications and final opinion of value
Report of defined value

19
Q

Components of identification of the appraisal problem

A

Client
Intended use Of the assignment
Intended users of the appraisal report in addition to the client if any
Type of value and its definition
Effective date of the opinions and conclusions
Identification of relative characteristics of the property
Assignment conditions including extraordinary or special assumptions hypothetical conditions laws and regulations jurisdictional exceptions and other conditions that affect scope

20
Q

In an appraisal assignment what does scope of work determination include

A

Which approaches to value will be used
How much data is to be gathered?From what sources from which geographic area and over what time period
The extent of the date of verification process
The extent of property inspection if any

21
Q

What two important functions does market analysis serve

A

It provides a background against which local developments are considered
A knowledge of the broad changes that affects supply and demand gives the appraiser and indicator of how values change over time

22
Q

What information does market analysis yield for cost approach

A

It provides the basis for adjusting for depreciation

23
Q

What information does market analysis yield for income approach

A

It provides consideration for forces affecting supply and demand

24
Q

What information does market analysis yield for direct comparison approach

A

Delineates the market , thereby providing comparables and the marketable amenities within those comparables

25
Q

What are the three categories of employers for appraisers?

A

Fee appraisers
institutional appraisers
government appraisers

26
Q

What are the three traits that define a profession

A

Integrity competence and quality work

27
Q

What are the stakeholders that of a praiser has an obligation to

A

Clients
Third parties
Society
The appraisal profession

28
Q

What are the 2 designations available from the AIC

A

Canadian residential appraiser
Accredited appraiser canadian institute

29
Q

What are the AIC’s first principles of value

A

Problem identification
Property content
Legal considerations
Highest and best use
Research
Economic analysis

30
Q

What are the five key characteristics of improved land

A

Unique
Immobile
Durable
Finite supply
Usefulness.

31
Q

How do you calculate the land surplus productivity?

A

Determine market value for highest investments.Subtract the costs of getting it developed to that stage and the entrepreneurial incentive. The result is the land surplus productivity.

32
Q

What are the principles impacting real property value

A

Anticipation and change
Supply and demand
Substitution
Balance
Surplus productivity
Contribution
Conformity
Externalities

33
Q

What are the five professional Competencies?

A

Analytical thinking
Conceptual thinking
Decisiveness
Focus on quality and details
Client service orientation

BUSI 330 Foundations Of Real Estate Appraisal (3 decks)

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