Valuation

Question 1

determining market value of a property

Answer 1

appraisal

Question 2

is what it did sell for.

Answer 2

market price

Question 3

an estimate of what a property should sell for in the current market

Answer 3

market value

Question 4

involves an appraiser locating similar properties to the property being appraised. When there are more homes on the market, it is easier for the appraiser to find similar properties and to make valuation adjustments as appropriate.

Answer 4

sales comparison approach

Question 5

who can perform an appraisal?

Answer 5

real estate appraiser

Question 6

compound interest formula

Answer 6

A = P ( 1 + r ) ^ t

Question 7

fixed and immobile

Answer 7

land

Question 8

Type of tax based on the appraisal of a particular piece of property.

Answer 8

estate tax

Question 9

an estimated value of a particular piece of property

Answer 9

appraisal

Question 10

Most work independently, on a fee-for-service basis to avoid conflicts of interest,

Answer 10

appraiser

Question 11

The property being appraised is called ____.

Answer 11

subject property

Question 12

Only in an arm’s length transaction can the agreed upon value be considered ________.

Answer 12

fair market value

Question 13

added property value based on a specific person using it for a specific purpose

Answer 13

value in use

Question 14

the value to a specific investor with a specific plan for the property

Answer 14

investment value

Question 15

Is determined by applying the tax rate for a given jurisdiction to the property’s value as assessed by the tax assessor.

Answer 15

property taxes

Question 16

Three methods of property appraisal

Answer 16

1. Sales comparison approach
2. Cost of replacement approach
3. Income approach

Question 17

Two or more different value indicators are analyzed, weighed according to their reliability and relevance, then combined into a single value.

Answer 17

reconciliation