unit 2 Flashcards
A car dealership along a roadway is so successful that other dealerships begin opening along the same road. This is an example of which appraisal principle?
Competition
When collecting and analyzing data for an appraisal, the appraiser should verify the data by checking information from atLEASThow many different sources?
Two
When interest rates are so high that most potential buyers cannot afford to get a loan and property values are declining, this refers to
the demand for the property.
The value of a commercial property increases because it is believed a major highway interchange might be built close to it. This is an example of the principle of
anticipation.
Adding more bathrooms to a three-bedroom house that has only one bathroom may be an example of
incurable functional obsolescence.
The first step in the appraisal process is to state the problem or purpose of the appraisal. The second step is to
list the data needed and the sources.
When appraisers evaluate the facts and form a final opinion of value for a property, they are
reconciling valuation approaches.
According to the income approach, if the capitalization rate increases, the property value
decreases.
Brokers and sales agents often use a simplified version of the sales comparison approach for residential real estate called a comparative
market analysis.
What is the primary difference between a price placed on a property by a real estate sales person and a value placed by a professional appraiser?
Real estate agent pricing is informal, while professional appraisers offer a formal or accurate number.
Honest and accurate valuations of property are now considered critical because
inflated appraisals are at least partially blamed for the real estate collapse of 2007 and the following recession.
Which of the following isNOTan appraisal license or certification level?
Certified special real estate appraiser
What exam must be passed by a board member of an appraisal management company?
No examination is required.
Must real estate appraisers, at any level, have real estate sales licenses as a prerequisite?
No, there are no real estate sales prerequisites.
Which of the following terms is best defined as analyzing the results obtained by the three approaches to value to determine a final opinion of value?
Reconciliation
Which approach involves a subject property and three or more comparable properties?
Sales comparison
In the sales comparison approach, the sales price of the comparable property is adjusted to account for physical conditions and
features.
When a sales agent prepares a brokers price opinion (BPO), what statement must be included?
That a BPO is not an appraisal
How much experience is required to become a state-licensed real estate appraiser?
No experience, only satisfactory passage of the state licensing exam
Which of the following dilemmas fits under the appraisal principle of contribution?
Should an owner install solar cells to reduce his electric bill, even though the payback is 20 years?
A purchaser wants a four-bedroom home with a large family room because he has three children and a large extended family that visits frequently. His ultimate selection of a home based on his basic needs and desires for particular bedroom and living spaces represents which characteristic of value?
Utility
Why are appraisal management companies (AMCs) needed?
To make sure appraisers are independent of lenders, thus reducing fraud.
Who sets the listing price of a property?
The seller, based on what they feel the property is worth
The stated purpose of the Texas Appraiser Licensing and Certification Board (TALCB) is to
protect consumers.
