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20 Cards in this Set
- Front
- Back
- 3rd side (hint)
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REAL ESTATE VALUES ARE MOST AFFECTED BY: A) LOCATION B) AVAILABILITY OF MONEY C) APPRAISAL D) NATIONAL TRENDS |
A) LOCATION |
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IF THE VALUE OF A PROPERTY IS NEGATIVELY AFFECTED BY FORCES OUTSIDE THE PROPERTY BEYOND THE CONTROL OF THE OWNER, AN APPRAISER WOULD ADJUST THE PROPERTY APPRAISAL FOR: A) ACCRUED DEPRECIATION B) FUNCTIONAL OBSOLESCENCE C) ECONOMIC OBSOLESCENCE D) PHYSICAL DETERIORATION |
C) ECONOMIC OBSOLESCENCE |
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THE PURCHASE AND PROCESS OF PUTTING TOGETHER SEVERAL PARCELS OF IS BEST CALLED: A) ANNEXATION B) APPRECIATION C) ASSEMBLAGE D) INTEGRATION |
C) ASSEMBLAGE
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WHICH OF THE FOLLOWING ECONOMIC PRINCIPLES BEST DESCRIBES THE AMOUNT OF ADDED VALUE AN IMPROVEMENT MAKES TO THE PROPERTY? A) CONFORMITY B) CONTRIBUTION C) PLOTTAGE D) HIGHEST AND BEST USE |
B) CONTRIBUTION |
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A CHURCH OF UNIQUE DESIGNS AND CONSTRUCTION IS BEST APPRAISED BY WHICH APPROACH? A) INCOME B) LAND RESIDUAL C) MARKET COMPARISON D) COST |
D) COST |
PROPERTY IS UNIQUE |
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WHICH OF THE FOLLOWING CONDITIONS IS AN INDICATION OF FUNCTIONAL OBSOLESCENCE? A) A CRACKED FOUNDATION B) A NEIGHBORHOOD AIRPORT EXPANDED TO LAND JUMBO JETS C) A 2-STORY HOUSE WITH NO DOWNSTAIRS BATHROOM D) AN INCREASE IN SPECIAL ASSESSMENTS |
C) A 2-STORY HOUSE WITH NO DOWNSTAIRS BATHROOM |
CURABLE |
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IN WHICH OF THE FOLLOWING APPROACHES TO ESTIMATING VALUE IS THE AMOUNT OF DEPRECIATION CALCULATED? A) GROSS RENT MULTIPLIER - GRM B) INCOME APPROACH C) COST APPROACH D) SALES COMPARISON APPROACH |
C) COST APPROACH |
ITS ONLY ONE THAT USES DEPRECIATION |
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WHEN ESTIMATING THE VALUE OF A PROPERTY USING THE COST APPROACH, THE APPRAISER WOULD CALCULATE A) SALES PRICE OF SIMILAR BUILDINGS B) THE VACANCY RATE IN THE AREA C) THE REPLACEMENT COST OF THE BUILDING D) THE OWNER'S ORIGINAL COST |
C) THE REPLACEMENT COST OF THE BUILDING |
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THE INCOME APPROACH TO ESTIMATING VALUE WOULD BE BEST BE USED IN AN APPRAISAL OF A: A) SHOPPING MALL B) SINGLE FAMILY RESIDENCE C) VACANT LOT D) CHURCH |
A) SHOPPING MALL |
RENTAL PROPERTY FROM THE SHOPS AT THE MALL |
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IN WHICH OF THE FOLLOWING APPROACHES TO ESTIMATING VALUE WOULD THE VALUE OF THE LAND BE CALCULATED SEPARATELY FROM THE IMPROVEMENTS? A) SALES COMPARISON APPROACH B) INCOME APPROACH C) GROSS RENT MULTIPLIER D) COST APPROACH |
D) COST APPROACH |
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WHEN ESTIMATING THE VALUE OF A PROPERTY USING THE INCOME APPROACH, THE APPRAISER WOULD CALCULATE THE A) APPRECIATION B) DEPRECIATION C) EQUITY D) CAPITALIZATION |
D) CAPITALIZATION |
AKA INCOME |
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WHICH OF THE FOLLOWING WOULD MOST LIKELY BE A CAUSE OF INCURABLE FUNCTIONAL OBSOLESCENCE IN AN OLD OFFICE BUILDING? A) LARGE, CLOSELY SPACED INTERNAL SUPPORT OF COLUMNS B) AN INCREASE IN THE VACANCY RATES IN THE AREA C) INADEQUATE LIGHTING FIXTURES D) NUMEROUS BROKEN WINDOWS |
A) LARGE, CLOSELY SPACED INTERNAL SUPPORT OF COLUMNS |
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IN USING THE COST APPROACH, THE APPRAISER WOULD ESTIMATE THE LOSS IN VALUE DUE TO NORMAL WEAR AND TEAR ON THE PROPERTY. THIS IS CALLED A) FUNCTIONAL OBSOLESCENCE B) ECONOMIC OBSOLESCENCE C) PHYSICAL DETERIORATION D) EXTERNAL OBSOLESCENCE |
C) PHYSICAL DETERIORATION
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THE CAPITALIZATION RATE IS DETERMINED BY DIVIDING THE A) NET OPERATING INCOME (NOI) BY THE VALUE B) THE EFFECTIVE GROSS INCOME INTO THE MONTHLY LOAN COSTS C) THE CAP RATE INTO THE GROSS RENT MULTIPLIER D) ECONOMIC DEPRECIATION INTO THE VALUE OF THE LAND |
A) NET OPERATING INCOME BY THE VALUE |
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WHEN THE CAP RATE GOES DOWN THE VALUE A) GOES DOWN B) STAYS THE SAME C) GOES UP D) MUST BE REEVALUATED USING THE COST APPROACH |
C) GOES UP |
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THE DIFFERENCE BETWEEN A CMA AND AN APPRAISALS IS A) A CMA USES ONLY SOLD PROPERTIES FOR COMPARISON B) THE APPRAISAL USES ONLY SOLD PROPERTIES FOR COMPARISON C) THE APPRAISAL MAKES ADJUSTMENTS TO THE SUBJECT PROPERTY D) THE CMA MAKES ADJUSTMENTS TO THE SUBJECT PROPERTY D) THE CMA MAKES ADJUSTMENTS TO THE SUBJECT PROPERTY |
B) THE APPRAISAL USES ONLY SOLD PROPERTIES FOR COMPARISON
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ANOTHER NAME FOR THE SALES COMPARISON APPROACH A) SUBJECT PROPERTY APPROACH B) RESIDENTIAL EVALUATION APPROACH C) MARKET DATA APPROACH D) RECONCILIATION RECOGNITION APPROACH |
C) MARKET DATA APPRAOCH |
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THE COMPARABLE HOUSE HAS A TWO-CAR GARAGE, THE SUBJECT PROPERTY HAS NO GARAGE. GARAGES IN THE AREA ARE VALUED AT APPROXIMATELY $15,000. WHAT ADJUSTMENT SHOULD BE MADE: A) ADD $15,000 TO THE SUBJECT PROPERTY B) SUBTRACT $15,000 FROM THE SUBJECT PROPERTY C) ADD $15,000 TO THE COMPARABLE PROPERTY D) SUBTRACT $15,000 TO THE COMPARABLE PROPERTY |
D) SUBTRACT $15,000 TO THE COMPARABLE PROPERTY`
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WHEN APPRAISING LAND, WHICH APPRAISAL APPROACH IS USED? A) COST APPROACH B) CAPITALIZATION C) SALES COMPARISON APPROACH D) GROSS RENT MULIPLIER |
C) SALES COMPARISON APPROACH |
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RECONCILIATION REFERS TO WHICH OF THE FOLLOWING? A) AVERAGING THE 3 APPROACHES B) THE VALUING OF LAND AND PROPERTY SEPARATELY C) WEIGHING THE RESULTS OF THE DIFFERENT APPROACHES TO DETERMINE A FINAL ESTIMATE OF VALUE D) REBUILDING A SPECIAL PURPOSE STRUCTURE USING THE SALES DATA APPROACH TO VALUE |
C) WEIGHING THE RESULTS OF THE DIFFERENT APPROACHES TO DETERMINE A FINAL ESTIMATE OF VALUE
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