Yield and Profit Loss

Question 1

Appraisal Management Company

Answer 1

An independent real estate appraisal company hired to perform valuations on potentially mortgaged properties

Question 2

Appreciation

Answer 2

An increase or rise in the value of property, goods, etc

Question 3

Automated Valuation Models

Answer 3

This form of appraisal uses mathematical modeling combined with databases of existing properties and transactions to calculate real estate valuations

Question 4

Depreciation

Answer 4

Decrease in value

Question 5

Desktop Appraisal

Answer 5

An appraisal done strictly at a desk

Question 6

Drive-by Appraisal

Answer 6

An appraiser will only drive by the home to determine the appraised value

Question 7

Gross Rent Multiplayer

Answer 7

Used as a rule of thumb for quick estimate of value based on the relationship of comparable sales prices to comparables’ monthly rental income; it is not an approach to alue

Question 8

Increment

Answer 8

An increase in value in property due to the actions of an owner. Ex remodeling home

Question 9

Reconciliation

Answer 9

The last step in appraisal process, whereby the appraiser reconciles the three approaches to value arriving at his or her estimate

Question 10

Unearned increment

Answer 10

An increase in the value of property without any action of the owner. Ex increased population

Question 11

Uniform Standards of Professional Appraisal Practice (USPAP)

Answer 11

Mandatory requirements for certain federally related real estate appraisals

Question 12

Yield

Answer 12

Annual interest divided by the amount invested in the loan