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ahora si es que es > Valuation and market analysis #1 > Flashcards

Valuation and market analysis #1 Flashcards

1
Q

appraisel

A

a formal opinion in value that a real estate appraiser assigns, based on supportable evidence, for a specific purpose, party, property.

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2
Q

appraisers

A

estimate the value of a building or a piece of land

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3
Q

valuation

A

the process of forming an opinion of a property value

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4
Q

the appraiser used 7 steps but asked for 4 in the test to appraise a building or land which are

A
  1. state the problem
  2. identify data needed
  3. gather and analyze
  4. data determine the highest and best use
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5
Q

cost

A

the amount to recreate a property if it disappears over the face of the earth today

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6
Q

market price

A

is the amount a buyer pays for a property and the seller accepted

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7
Q

value

A

is a property worth and may not equal price or cost

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8
Q

market value

A

is the most probable price a property will sell for in an open market if neither the buyer nor seller is under duress

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9
Q

4 characteristics of value are…

the acronym for this is DUST

A
  1. Demand = how popular or desired property is
  2. Utility = The property function
  3. Scarcity = relates to market supply
  4. transferability = the ease with which another person can purchase the property.
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10
Q

Principal of conformity

A

a property value determined by how similar it is to the neighborhood or how well it conforms to its surrounding area
(like if it placed in another place with different houses it losses value than being on a place where all the houses are the same)

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11
Q

Principal of progression

A

the idea that the value of a house increases when more valuable houses are built in the area.

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12
Q

Principal of regression

A

that the value of the high-end real estate may be diminished by having lower-end properties in the same vicinity.

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13
Q

Principal fo assemblage

A

When two parcels (or more) of land are combined to be sold as one parcel together,

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14
Q

Principal of plottage

A

increase in value that occurs when two adjacent parcels are combined into a single one

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15
Q

Principal of anticipation

A

a method by an appraiser where the appraiser uses the income approach to determine the value of a property. The appraiser will estimate the present worth of future benefits for the property.

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16
Q

Principal of contribution

A

states how an additional improvement could affect the values of the overall properties

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17
Q

The principle of substitution

A

A prudent investor would pay no more for an income-producing property than it would cost to build or purchase a similar property.

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18
Q

the principal of competition

A

what else is available

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19
Q

the sales comparison approach

A

a real estate appraisal method that compares one property to comparables or other recently sold properties in the area with similar characteristics. .

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20
Q

cost approach

A

a real estate valuation method that estimates the price a buyer should pay for a piece of property is equal to the cost to build an equivalent building. In the cost approach, the property’s value is equal to the cost of land, plus total costs of construction, less depreciation.

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21
Q

External depreciation (aka economic obsolescence)

A

caused by factors outside of the property like the airport nearby causing noise etc.

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22
Q

Functional obsolescence

A

form of depreciation caused by defects in design

or loss in value

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23
Q

physical deterioration

A

occurs with wear and tear

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24
Q

comparative market analysis (CMAs)

A

help clients make price decisions

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25
Q

2 types of physical depresiation are….

A

curable and uncurable

26
Q

The assessed value

A

is a property’s determined valuation to calculate the appropriate tax rates. An assessment considers sales of similar homes, as well as home inspection findings, in its final determinations. When it comes to selling a home, the assessed value is the most widely accepted dollar value of your home

27
Q

market value

A

refers to the actual value of your property when placed at a sale on the open market. It’s determined by buyers and defined as the amount they are willing to pay for purchasing the home.

28
Q

Who typically prepares a comparative market analysis? CMA

A

Who typically prepares a comparative market analysis?

29
Q

Which department typically decides which development projects require a permit or approval?

A

building department

30
Q

The primary purpose of the Real Estate Settlement Procedures Act is to ensure that buyers ______.

A

Know all settlement costs up front

31
Q

What’s another term for a valuation that’s an unbiased opinion of value?

A

Formal appraiser

32
Q

Maxine is purchasing a small craft shop, including the underlying real estate. She applies for a commercial loan from her federally insured bank to complete the purchase. Is Maxine’s transaction covered by the Real Estate Settlement Procedures Act?

A

No; commercial and business loans are exempt from RESPA requirements.

33
Q

Which of the following statements is true regarding timeshare estates?

A

Timeshare estates can be sold or passed down to heirs.

34
Q

Which of the following is a promise from the borrower to repay a certain sum of money to another party (the lender or holder of the note) under specified terms?

A

promissory note

35
Q

What’s a quiet title action?

A

An action to locate and notify all who may have some claim on the title, and determine the validity of all claims

36
Q

Over how many years is a residential income-producing property depreciated?

A

27.5 years

37
Q

Marlon and Leah are interested in buying a home in a new homeowner opportunity area. The 100-year-old row house was renovated and is like new on the inside. The property taxes decreased by more than $5,000 last year. What’s the likely reason for this?

A

tax abadement

38
Q

a tax abadament program

A

will lower the property taxes on a given property for a set amount of time. This is typically in response to some sort of improvement or rehabilitation, or for some new construction properties.

39
Q

Identifying the purpose of the appraisal leads the appraiser to do what next

A

identifying data needed

40
Q

What is the purpose of the interstate land sales full disclosure act?

A

To prevent the fraudulent sale of property across state lines

41
Q

Compared to working without a buyer agency agreement, who works under a buyer agency____

A

Receipts a higher level of service

42
Q

What’s the definition of a land contract

A

Sellers provide funds or credit to buyers in order to close the transaction. The buyer makes payments directly to the seller

43
Q

Proposed Sony ordinances must undergo test to determine their validity. this test include which of the following question?

A

Ordinances must not be discriminatory

44
Q

When a lower quality property is adjacent to a higher quality property, it can diminish the value of the higher quality property that what economic principle values is

A

Regression

45
Q

What might did financial implications be if I buyer needed to use individual retirement account funds towards a down payment

A

First time home buyers can use up to $10,000 of their IRA funds penalty free for down payment and closing cost

46
Q

Which type of commercial leads does the tenant pay some or all the expenses?

A

With the net lease net lease

47
Q

System home buyers can access an additional amount up to $—- of their ira accounts over and above withdrawals equal to their contributions

A

10,000

48
Q

What organization administers and enforces the brokers act through the licensing process?

A

The Maryland Real estate commission

49
Q

Your meeting with prospective clients in person for the first time that what are you required by law to explain to them

A

The types of agency relationships they may have with a real estate professional

50
Q

Which act gives companies the right to sue a competitor for making the deceptive ad claims

A

The lanham act

51
Q

How do predatory lenders take advantage of consumers?

A

Making loans to consumers who can afford them

52
Q

When perspecting and soliciting for new business, licenses should be familiar with which feather act question

A

Did you not call inflammation act, can spam act, and junk fax prevention act

53
Q

How many approaches to value do your prices generally use question

A

They used 3 approaches the cells compression, close to reproduce, and income

54
Q

What type of tendency can be automatically created if a tenant under at least stays beyond the leases terms, and the landlord continues to accept rent from the tenant?

A

Month to month tenancy

55
Q

What happens when a married couple who owns a property as tenants by the entirety divorce?

A

Their ownership changes to tenants in common

56
Q

Which of the following is an action that real estate licensees may take without practicing law illegally?

A

Use existing forms that an attorney has reviewed

57
Q

Who generally rides a broker’s price opinion?

A

A real estate broker for a lender

58
Q

Which of the following financing types involves the cell of personal property with real property

A

Package

59
Q

When must informed consent for dual agency be obtained

A

At the time with the licensing and customer have entered into an agent client relationship

60
Q

Which of the following is a potential drawback to a real property exchange?

A

Taxable gains

61
Q

Eastman’s are a type of encompass that can affect the property that which of the following is true about Eastman’s

A

Eastman’s are often established by written agreement between the parties

62
Q

What instruments are commonly used to secure the purchase of real property?

A

A mortgage and deed of trust

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