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20 Cards in this Set
- Front
- Back
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Which method would most likely be used by licensees in estimating the value of single-family residences? |
Market data approach |
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An appraiser using the cost approach to Value has the most difficulty in determining? |
Accumulated depreciation |
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A property has a net income of $30,000. An appraiser decides to use 12% capitalization rate rather than 10%. This will result in? |
A $50,000 decrease in appraised value |
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Certain data must be utilized by an appraiser in Computing value through an income approach. Which of the following is not required for this process? |
Accrued depreciation |
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The market data approach to value is normally used in estimating the value of? |
Vacant land |
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Raizing a hotel to build an office building is most likely an example of the principle of? |
Highest and best use |
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With fixed rents and a capitalization rate of 8%, an increase in taxes of $4,000 would result in the value of a property |
Decreasing by $50,000 |
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Loss of value due to negligent care of the property is called? |
Physical deterioration |
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The principle of supply and demand predicts? |
Demand increasing when price decreases |
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Land and improvements must be appraised separately when using the? |
Cost approach |
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An appraiser received figures from a CPA on past rent receipts and operating expenses. The appraiser should? |
Adjust the figures provided for future occurrences |
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Which of the following is not considered in the market data approach to value? |
Acquisition cost to present owner |
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In using the market comparison approach, the appraiser assumes? |
No two properties are identical |
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Using all three methods of appraisal and assigning different weights to each method is known as? |
Reconciliation |
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A duplex who's rents total $1250 is in an area of a smaller duplex in similar condition that rents for $440 per unit and just sold for $132,000. Using this information, the larger duplex would have a value of? |
$187,500 |
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The market comparison method has the least validity |
When there have been few sales |
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What is the function of a real estate appraiser? |
To estimate market value |
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A loss in value because of lesser value homes being built in an area would be an example of principle of? |
Regression |
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Market value is best defined as? |
The maximum price a willing informed buyer would pay to a willing informed seller |
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Functional obsolescence would not be caused by? |
The proximity of a nuisance |
