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20 Cards in this Set
- Front
- Back
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Appraisal |
An OPINION OF estimated value |
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If a residential property is less than --------, FIRREA states that it does not need an appraisal |
$250,000 |
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The property being appraised is known as the S-------- P------- |
Subject property |
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What kind of appraisal can be done as a drive-by? |
BPO (brokers price opinion |
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What is reconciliation? |
When the appraiser goes over all data from the three approaches and summarizes |
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The four characteristics of value are D-------, U------, S------, T--------- |
Demand, utility, scarcity, transferability |
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What is the difference between Market value and Market price? |
Value is an opinion of property's worth, price is actual price property sold for. |
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In basic principles of value, C------- is the interaction of supply and demand |
Competition (ie: similar store opening in area can drive down profits) |
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In basic principles of value,what is anticipation |
Value is determined by the anticipation of what may occur |
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In basic principles of value, things being similar in appearance in an area is known as C---------- |
Conformity |
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In basic principles of value, contribution is |
Overbuilding on your property and not achieving the value you anticipated. |
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Plottage |
Principle of Merging plots of land to increase value of newer larger lot |
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The process of merging 2 seperatly owned lots under one owner is called A---------- |
Assemblage |
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Regression and progression are |
Regression is property value decreasing because of neighbors house, progression is increase in value. |
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The sales comparison approach (market data approach) to Value is obtained by comparing property to similar properties by these element P------- rights F-------- concessions M-------- Conditions C-------- of sale M------- C-------- since date of sale L------ or A------- preference P------- F------ and A-------- |
*Property rights-adjustments made when less than fee simple is involved *financing concessions-adjustment based on financing terms *market conditions-is market condition same as when comparable property was purchased *conditions of sale-foreclosure? Sale between family members? Non monetary reason? *market conditions since date if sale-economic (ie:factory) changes since comp property sold *location or area preference *physical features and amenities |
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The appraisal methods: Square foot method, unit in place method (builders profit), reproduction vs replacement, quantity survey method, index method ALWAYS refer to the ------- approach to Value |
Cost |
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Three types of depreciation (ALWAYS cost approach) are P----------- Deterioration F------- obsolescence E---------obsolescence |
Physical deterioration, functional (ie rooms in a house-curable or incurable depending on cost return to change) and external obsolescence (which is always incurable because it's something you don't own) |
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3 trigger terms that ALWAYS refer to cost approach appraisal are SRD |
Separate, replacement, depreciation |
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The income approach to Value, mortgage payments are not considered operating expenses but D------ s--------- |
Debt service |
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A question that has both Market data approach and sales comparison approach as potential answers, always choose |
Market data approach |
