Unit 16: Real Estate Appraisal

Question 1

• must be performed by a licensed one

- more accurate than a CMA or broker’s price opinion

Answer 1

appraisal

Question 2

Most appraisals seek to estimate ____ value

Answer 2

market

Question 3

an ____ is a requirement for all federally-related loans

Answer 3

appraisal

Question 4

an ___ is notrequired for seller financingt

Answer 4

appraisal

Question 5

actual sales price orwhat someone actually paid. historic or verifiable fact. This is a ___ price

Answer 5

market

Question 6

market ____ is subjective, market ___ is objective

Answer 6

value, price

Question 7

Essential characteristics of value (DUST)

Answer 7

Demand (desire, affordability), Utility (property’s usefulness for its intended purpose), scarcity (finite supply of land, land in specific areas is limited (scarce)), Transferability (must have marketable title)

Question 8

The use that produces the highest value over time. typically is the current use, but it could be different

Answer 8

highest and best use

Question 9

Comparable Sales (comps)

Answer 9

similar properties that have recently sold

Question 10

comparables w fewer of adjustments generally provide a stronger indication of value

Answer 10

most recent comparables should be used. preferably 6 months or less