Unit 16 - Real Estate Appraisal

Question 1

Appraisal

Answer 1

The process of developing and communicating an opinion of value for a property based on supportable evidence and approved methods as of a certain date.

Question 2

Assemblage

Answer 2

The combing of two or more adjoining properties into one track.

Question 3

Automated Valuation Model (AVM)

Answer 3

A data analysis compiled from a computer database of closed sales used by lenders when an appraisal is not warranted.

Question 4

Cost

Answer 4

The amount to produce or acquire something

Question 5

Cost Approach

Answer 5

A method for estimating the market value of a property based on the cost to buy the site and construct a new building on the site, less depreciation

Question 6

Curable

Answer 6

When the correction of a defect results in as much added valuable as the cost to correct the defect

Question 7

Depreciation

Answer 7

A loss in value for any reason; a deduction for taxes

Question 8

Economic Life

Answer 8

The period of time a property maybe expected to be profitable or productive. Useful life

Question 9

Effective Age

Answer 9

The age indicted by a structure’s condition and utility.

Question 10

Effective Gross Income (EGI)

Answer 10

The resulting amount when vacancy and collection losses are subtracted from a potential gross income.