14 Appraisal Session 14 - Arizona Real Estate License

Front 1

THE AMOUNT A PERSON MIGHT PAY TO POSSESS A PROPERTY IS WHAT?

Back 1

SUBJECTIVE VALUE

Hint 1

PERSONAL VALUE

Front 2

THE AMOUNT A REASONABLE PERSON MIGHT BE EXPECTED TO PAY FOR THE SAME PROPERTY IS WHAT?

Back 2

OBJECTIVE VALUE

Front 3

WHO USES THE SALES PRICE OF SIMILAR PROPERTIES FOR TAX ASSESSMENTS?

Back 3

TAX ASSESSOR

Front 4

WHO IS CONCERNED WITH THE COST TO REPLACE DAMAGED PROPERTIES?

Back 4

INSURANCE COMPANY

Front 5

WHO IS CONCERNED ABOUT THE VALUE OF THE PROPERTY (COLLATERAL) WHICH IS PLEDGED AS SECURITY FOR A LOAN?

Back 5

THE LENDER

Front 6

WHAT IS THE RIGHT OF THE GOVERNMENT TO TAKE PRIVATE PROPERTY FOR PUBLIC USE?

Back 6

EMINENT DOMAIN

Front 7

WHO NEEDS A VALUE FOR EMINENT DOMAIN?

Back 7

MUNICIPALITIES

Front 8

WHO NEEDS VALUE FOR ESTATE VALUATIONS?

Back 8

ADMINISTRATORS

Front 9

THE MOST PROBABLE PRICE THE PROPERTY WILL BRING IN AN "ARM'S LENGTH" TRANSACTION?

Back 9

MARKET VALUE

Hint 9

AKA FAIR SALE

Front 10

THE BUYER AND SELLER ARE INFORMED, UNRELATED AND ACTING WITHOUT UNDUE PRESSURE THEN YOU HAVE A _______ SALE

Back 10

FAIR

Hint 10

AKA MARKET VALUE

Front 11

IF THE PRICE IS CASH EQUIVALENT AND NOT AFFECTED BY UNUSUAL CIRCUMSTANCES IN

________ ____________

Back 11

MARKET VALUE

Front 12

WHAT MEANS PROPERTY WAS IN AN OPEN AND COMPETITIVE MARKET FOR A REASONABLE AMOUNT OF TIME?

Back 12

MARKET VALUE

Hint 12

MUST HAVE ALL FOUR FOR A FAIR SALE OR ?

Front 13

THE AMOUNT THE PROPERTY ACTUALLY SOLD FOR IS CALLED?

Back 13

PRICE

Hint 13

DEFINITION

Front 14

THE AMOUNT TO CONSTRUCT IMPROVEMENTS PLUS THE VALUE OF THE LAND IS CALLED?

Back 14

COST

Hint 14

DEFINITION

Front 15

WHAT ARE THE FOUR COMPONENTS FOR A PROPERTY TO HAVE VALUE?

Back 15

DEMAND, USE, SUPPLY AND TRANSFERRABLE

Hint 15

DUST

Front 16

A COMPONENT OF VALUE IS A NEED OR WANT BY SOMEONE WITH THE ABILITY TO OBTAIN IT IS CALLED?

Back 16

D - DEMAND

Hint 16

EX: BECAUSE A NEW INDUSTRY IS COMING INTO THE AREA; MANY BUYERS WANT TO LIVE NEARBY

Front 17

A PROPERTY MUST HAVE A USEFUL PURPOSE TO SATISFY A NEED IS CALLED?

Back 17

U - UTILITY

Hint 17

DUST

Front 18

A COMPONENT OF VALUE IS A LIMITED __________ IN A CERTAIN AREA OR OF A CERTAIN TYPE?

Back 18

S - SUPPLY

Hint 18

EX: VERY FEW 5 BEDROOM HOMES WITH A POOL AND 4 CAR GARAGE ARE AVAILABLE WHICH MAKES THIS HOME MORE VALUABLE

Front 19

A COMPONENT OF VALUE IS THE EASE WITH WHICH OWNERSHIP RIGHTS CAN BE TRANSFERRED IS CALLED?

Back 19

T -TRANSFERABILITY

Hint 19

DUST - T

Front 20

THE BELIEF THAT A PROPERTY VALUE WILL INCREASE OR DECREASE BASED ON SOME FUTURE EVENT?

Back 20

ANTICIPATION

Hint 20

EX: A MAJOR FREEWAY BUILT NEARBY HOMES WILL MAKE IT EASIER TO COMMUTE TO WORK.

FREEWAY HAS POSITIVE EFFECT ON HOMES IN THE AREA

Front 21

WHAT IS CONSTANT AND CAN BE PHYSICAL, NORMAL WEAR AND TEAR, AND EVEN ECONOMIC LIKE TAX LAW CHANGE OR ZONING CHANGE?

Back 21

CHANGE

Hint 21

EX: PROPERTY ADJACENT TO YOUR HOME IS REZONED TO COMMERCIAL. DEPENDING ON WHETHER A FAST FOOD JOINT OR GAS STATION IT WILL IMPACT YOUR PROPERTY VALUE.

Front 22

AN IMPROVEMENT MAY ADD WHAT TO A PROPERTY?

Back 22

ADDED VALUE

Hint 22

EX: HOUSE WITH A POOL IS HIGHER IN VALUE THAN A HOUSE WITHOUT A POOL

Front 23

(ON TEST)

THE USE OF THE PROPERTY THAT GENERATES THE GREATEST PROFITABILITY IS CALLED?

Back 23

HIGHEST AND BEST USE

Hint 23

DEFINITION

EX: A VACANT LOT IN A DOWNTOWN AREA USED AS A PARKING LOT WOULD GENERATE MORE PROFIT AS A HIGH RISE OFFICE BUILDING.

Front 24

WHAT MUST AN INDIVIDUAL DO IN ARIZONA TO BECOME AN APPRAISER?

Back 24

1) MINIMUM OF 150 HOURS OF EDUCATION

2) 2000 HOURS OF EXPERIENCE IN NO FEWER THAN 12 MONTHS

3) PASS A STATE EXAM

Front 25

A LICENSED APPRAISER MUST HAVE HOW MANY HOURS OF CONTINUING EDUCATION?

Back 25

MUST COMPLETE 28 HOURS OF CONTINUING EDUCATION EVERY TWO YEARS.

Hint 25

28 C E

Front 26

WHAT IS FIRREA ACT OF 1989 STAND FOR?

Back 26

FINANCIAL INSTITUTIONS REFORM, RECOVERY AND ENFORCEMENT ACT OF 1989

Front 27

(ON TEST)

WHAT IS FIRREA (1989) ACT ESTABLISHED?

Back 27

FEDERAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT OF 1989

IS A U.S. FEDERAL LAW ENACTED IN THE WAKE OF THE SAVINGS AND LOAN CRISIS OF THE 1980s TO PROTECT OUR NATIONS FINANCIAL INSTITUTES?

Front 28

TITLE XI OF FIRREA INSURES WHAT?

Back 28

INSURES STATE FOLLOW THE GENERALLY ACCEPTED APPRAISAL AND QUALIFICATION STANDARDS FOR STATE-CERTIFIED AND LICENSED APPRAISAL AS DEFINED IN "THE UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE."

Front 29

ON PAGE 6 STOPPED HERE

Back 29

STOPPED HERE

Front 30

THE BELIEF THAT A PROPERTY VALUE WILL INCREASE OR DECREASE BASED ON SOME FUTURE EVENT IS?

Back 30

ANTICIPATION

Front 31

IT IS CONSTANT, CAN BE PHYSICAL AS IN FIRES OR FLOODS, OR IT CAN BE GRADUAL AS IN NORMAL WEAR AND TEAR OR UPGRADES?

Back 31

CHANGE

Hint 31

EX: PROPERTY ADJACENT TO YOUR HOME HAS RECENTLY BEEN REZONED TO COMMERCIAL. DEPENDING ON WHETHER A FAST FOOD RESTAURANT OR A GAS STATION WILL IMPACT YOUR PROPERTY VALUE.

Front 32

A RESULT OF SUPPLY AND DEMAND.

Back 32

COMPETITION

Hint 32

DEFINITION

Front 33

WHEN A PROPERTY CONFORMS TO THE OTHER PROPERTIES IN THE AREA, IT ACHIEVES ITS POTENTIAL MAXIMUM VALUE AKA ___________?

Back 33

CONFORMINITY

Hint 33

EX: ALL HOMES IN AREA ARE OF SIMILAR ARCHITECTURAL STYLE AND CONFORM TO EACH OTHER

Front 34

THE VALUE AN IMPROVEMENT ADDS TO A PROPERTY IS CALLED?

Back 34

CONTRIBUTION

Hint 34

EX: ADDING POOL COST $30,000 MAY ONLY CONTRIBUTE A VALUE OF $15,000

REMEMBE: COST OF IMPROVEMENT DOES NOT EQUAL VALUE

Front 35

(ON TEST)

THE COST OF AN APPRAISAL IS BASED ON WHAT?

Back 35

TIME AND WORK INVOLVED

Front 36

COST OF APPRAISAL IS NOT BASED ON THE VALUE OF THE PROPERTY BEING APPRAISED

TRUE OR FALSE?

Back 36

TRUE, BASED ON TIME AND WORK INVOLVED

Front 37

(ON TEST)

WHAT ARE THE STANDARDS THE LICENSED APPRAISAL FOLLOWS IS CALLED?

Back 37

(USPAP) UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE

Front 38

(ON TEST)

THE RELATIONSHIP BETWEEN THE COST OF AN IMPROVEMENT AND THE VALUE IT ADDS TO THE PROPERTY IS CALLED?

Back 38

INCREASING AND DIMINISHING RETURNS

Front 39

(ON TEST)

COMBINING SMALL LOTS TOGETHER INTO ONE LARGER LOST RESULTING IN A GREATER VALUE.

Back 39

PLOTTAGE

Hint 39

DEFINITIONS

Front 40

(ON TEST)

THE LARGER LOT HAS A HIGHER VALUE THAN THE SUM OF THE SMALL LOTS SO THE LOTS ARE MERGED IS CALLED?

Back 40

ASSEMBLAGE

Hint 40

DEFINITION

Front 41

THE VALUE OF THE WORST HOUSE IN THE DESIRABLE NEIGHBORHOOD INCREASES IS CALLED?

Back 41

PROSESSION

Hint 41

DEFINITION

Front 42

THE LOSS OF VALUE A BETTER PROPERTY WILL SUFFER BECAUSE IT IS IN AN AREA OF LESSER VALUED HOMES?

Back 42

REGRESSION

Hint 42

DEFINITION

Front 43

WHEN SUPPLY INCREASES OR DEMAND DECREASES VALUE DECREASES IS A PART OF WHAT?

Back 43

SUPPLY & DEMAND

Hint 43

S & D

Front 44

THE AMOUNT THAT THE PROPERTY ACTUALLY SOLD FOR IS THE?

Back 44

PRICE

Front 45

THE AMOUNT THAT A PARTY AGREES TO PAY IN OPEN MARKET IS?

Back 45

MARKET VALUE

Front 46

THE AMOUNT TO CONSTRUCT IMPROVEMENT PLUS THE VALUE OF THE LAND IS?

Back 46

COST

Front 47

THE COMPONENT OF VALUE THAT ADDRESSES THE USEFUL PURPOSE TO SATISFY A NEED IS?

Back 47

UTILITY

Front 48

IF THE PROPERTY IS CURRENTLY BEING USED TO ITS GREATEST PROFITABILITY IT IS REFERRED TO AS?

Back 48

HIGHEST AND BEST USE

Front 49

OVER IMPROVING A HOME BY ADDING A SECOND KITCHEN IS AN EXAMPLE OF?

Back 49

DIMINISHING RETURNS

Front 50

A SINGLE FAMILY HOME LOCATED IN AN INDUSTRIAL AREA MAY NOT REACH ITS FULL VALUE BECAUSE OF THE PRINCIPLE OF?

Back 50

CONFORMINITY

Front 51

AN INCREASE OR DECREASE IN VALUE BASED ON THE BELIEF THAT A FUTURE EVENT WILL AFFECT VALUE REFERS TO THE PRINCIPLE OF?

Back 51

ANTICIPATION

Front 52

THE PROCESS OF MERGING SMALL LOTS INTO ONE LARGE PARCEL IS?

Back 52

ASSEMBLING

Front 53

THE ECONOMIC PRINCIPLE OF MERGING SEVERAL LOTS INTO ONE LARGE PARCEL IS?

Back 53

PLOTTAGE

Hint 53

HINT: ECONOMIC TO INCREASE THE VALUE

Front 54

(ON TEST)

APPRAISALS ARE PERFORMED ONLY BY WHOM?

Back 54

LICENSED APPRAISALS

Front 55

REAL ESTATE LICENSEES PERFORM A __________ TO HELP SELLERS DETERMINE THE PRICE TO LIST THE PROPERTY AND TO HELP BUYERS DETERMINE AN AMOUNT FOR A PURCHASE OFFER.

Back 55

CMA - COMPARATIVE MARKET ANALYSIS

Hint 55

CMA

Front 56

A CMA IS AN APPRAISAL

TRUE OR FALSE

Back 56

FALSE

APPRAISERS ARE ONLY CONCERNED WITH COMPARABLES THAT HAVE ACTUALLY SOLD WHEN DOING AN APPRAISAL

Front 57

REAL ESTATE AGENTS ARE CONCERNED WITH SOLD PROPERTIES AND PROPERTIES THAT ARE CURRENTLY ON THE MARKET FOR WHAT ANALYSIS?

Back 57

CMA - COMPARATIVE MARKET ANALYSIS

Front 58

(ON TEST)

AN APPRAISAL IS A PROCESS OF DEVELOPING A WHAT?

Back 58

AN OPINION OF VALUE

Front 59

THE APPRAISAL'S OPINION OF VALUE IS AS A SPECIFIC DATE, BASED ON ANALYSIS OF FACTUAL DATA, AND IT IS A LICENSED APPRAISER'S EXPERT OPINION SUPPORTED BY ANALYSIS OF FACT?

TRUE OR FALSE?

Back 59

TRUE

Front 60

WHAT ARE THE THREE APPROACHES FOR APPRAISALS?

Back 60

SALES COMPARISON

COST

INCOME

Front 61

(ON TEST)

WHAT IS PERFORMED TO ARRIVE AT AN OPINION OF MARKET VALUE?

Back 61

RECONCILIATION

Front 62

(ON TEST)

WHEN AN APPRAISER ANALYZES THE FACTS AND RESULTS FOR EACH OF THE APPROACHES AND USES PROFESSIONAL JUDGEMENT TO ASSIGN DIFFERENT WEIGHTS TO EACH METHOD IN FORMING AN OPINION OF VALUE IS WHAT?

Back 62

RECONCILIATION

Front 63

THE LAW THAT WAS CREATED TO OVERSEE STATE APPRAISAL STANDARDS AND QUALIFICATIONS IS?

Back 63

FINANCIAL INSTITUTIONS REFORM AND RECOVERY ACT (FIRREA) OF 1989

Hint 63

FIRREA

Front 64

THE GENERALLY ACCEPTED STANDARDS FOR PROFESSIONAL APPRAISAL PRACTICE IN NORTH AMERICA ARE CALLED?

Back 64

UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE

Hint 64

USPAP

Front 65

WHAT DOES A REAL ESTATE LICENSEE PREPARE TO ASSIST SELLERS IN ARRIVING AT A LISTING PRICE?

Back 65

COMPARATIVE MARKET ANALYSIS

Hint 65

CMA

Front 66

WHAT IS THE DIFFERENCE BETWEEN AN APPRAISAL AND A CMA?

Back 66

CMA: SOLD, ACTIVE AND PENDING PROPERTIES

APPRAISAL: ONLY SOLD PROPERTIES

Hint 66

ONE USES SOLD ONLY PROPERTIES

Front 67

THE APPRAISER'S COMPENSATION IS NOT BASED ON?

Back 67

VALUE OF THE HOME

Front 68

THE PROCESS OF ANALYZING THE DATA AND ARRIVING AT AN OPINION OF VALUE IS REFERRED TO AS?

Back 68

RECONCILIATION

Front 69

THE MOST COMMON APPRAISAL REPORT IS THE?

Back 69

URAR - UNIFORM RESIDENTIAL APPRAISAL REPORT

Hint 69

URAR

Front 70

THE SALES COMPARISON APPROACH IS ALSO CALLED THE?

Back 70

MARKET DATA APPROACH

Front 71

COST APPROACH IS ALSO CALLED THE?

Back 71

SUMMATION APPROACH

Front 72

CAPITALIZATION APPROACH IS ALSO CALLED THE?

Back 72

INCOME APPROACH

Front 73

THE MOST FREQUENTLY USED AND ACCEPTED APPROACH TO DETERMINING VALUE IN REAL ESTATE IS?

Back 73

THE SALES COMPARISON/MARKET DATA APPROACH

Front 74

THE SALES COMPARISON APPROACH IS MOST COMMON METHOD FOR APPRAISING WHAT TYPE OF PROPERTY?

Back 74

RESIDENTIAL PROPERTY

Front 75

THE ONLY METHOD THAT CAN BE USED FOR LAND IS THE?

Back 75

SALES COMPARISON APPROACH

Front 76

THE APPROACH THAT VALUE BASES ITS OPINION OF VALUE ON WHAT SIMILAR PROPERTIES IN THE AREA HAVE SOLD FOR RECENTLY IS?

Back 76

SALES COMPARISON APPROACH

Front 77

(ON TEST)

PROPERTY BEING APPRAISED IS REFERRED TO AS?

Back 77

SUBJECT PROPERTY

Front 78

(ON TEST)

SIMILAR PROPERTIES IN THE AREA THAT HAVE SOLD RECENTLY ARE REFERRED TO AS?

Back 78

COMPARABLES

Front 79

NO TWO PARCELS ARE EXACTLY THE SAME IS?

Back 79

NONHOMOGENEITY

Front 80

IN APPRAISALS THE ADJUSTMENT ARE ALWAYS MADE TO THE?

Back 80

COMPARABLE PROPERTY