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80 Cards in this Set
- Front
- Back
- 3rd side (hint)
THE AMOUNT A PERSON MIGHT PAY TO POSSESS A PROPERTY IS WHAT? |
SUBJECTIVE VALUE |
PERSONAL VALUE |
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THE AMOUNT A REASONABLE PERSON MIGHT BE EXPECTED TO PAY FOR THE SAME PROPERTY IS WHAT? |
OBJECTIVE VALUE |
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WHO USES THE SALES PRICE OF SIMILAR PROPERTIES FOR TAX ASSESSMENTS? |
TAX ASSESSOR |
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WHO IS CONCERNED WITH THE COST TO REPLACE DAMAGED PROPERTIES? |
INSURANCE COMPANY |
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WHO IS CONCERNED ABOUT THE VALUE OF THE PROPERTY (COLLATERAL) WHICH IS PLEDGED AS SECURITY FOR A LOAN? |
THE LENDER |
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WHAT IS THE RIGHT OF THE GOVERNMENT TO TAKE PRIVATE PROPERTY FOR PUBLIC USE? |
EMINENT DOMAIN |
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WHO NEEDS A VALUE FOR EMINENT DOMAIN? |
MUNICIPALITIES |
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WHO NEEDS VALUE FOR ESTATE VALUATIONS? |
ADMINISTRATORS |
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THE MOST PROBABLE PRICE THE PROPERTY WILL BRING IN AN "ARM'S LENGTH" TRANSACTION? |
MARKET VALUE |
AKA FAIR SALE |
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THE BUYER AND SELLER ARE INFORMED, UNRELATED AND ACTING WITHOUT UNDUE PRESSURE THEN YOU HAVE A _______ SALE |
FAIR
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AKA MARKET VALUE
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IF THE PRICE IS CASH EQUIVALENT AND NOT AFFECTED BY UNUSUAL CIRCUMSTANCES IN ________ ____________ |
MARKET VALUE |
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WHAT MEANS PROPERTY WAS IN AN OPEN AND COMPETITIVE MARKET FOR A REASONABLE AMOUNT OF TIME? |
MARKET VALUE |
MUST HAVE ALL FOUR FOR A FAIR SALE OR ?
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THE AMOUNT THE PROPERTY ACTUALLY SOLD FOR IS CALLED? |
PRICE |
DEFINITION
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THE AMOUNT TO CONSTRUCT IMPROVEMENTS PLUS THE VALUE OF THE LAND IS CALLED? |
COST |
DEFINITION
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WHAT ARE THE FOUR COMPONENTS FOR A PROPERTY TO HAVE VALUE? |
DEMAND, USE, SUPPLY AND TRANSFERRABLE |
DUST |
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A COMPONENT OF VALUE IS A NEED OR WANT BY SOMEONE WITH THE ABILITY TO OBTAIN IT IS CALLED? |
D - DEMAND |
EX: BECAUSE A NEW INDUSTRY IS COMING INTO THE AREA; MANY BUYERS WANT TO LIVE NEARBY |
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A PROPERTY MUST HAVE A USEFUL PURPOSE TO SATISFY A NEED IS CALLED? |
U - UTILITY |
DUST |
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A COMPONENT OF VALUE IS A LIMITED __________ IN A CERTAIN AREA OR OF A CERTAIN TYPE? |
S - SUPPLY |
EX: VERY FEW 5 BEDROOM HOMES WITH A POOL AND 4 CAR GARAGE ARE AVAILABLE WHICH MAKES THIS HOME MORE VALUABLE |
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A COMPONENT OF VALUE IS THE EASE WITH WHICH OWNERSHIP RIGHTS CAN BE TRANSFERRED IS CALLED? |
T -TRANSFERABILITY |
DUST - T
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THE BELIEF THAT A PROPERTY VALUE WILL INCREASE OR DECREASE BASED ON SOME FUTURE EVENT? |
ANTICIPATION |
EX: A MAJOR FREEWAY BUILT NEARBY HOMES WILL MAKE IT EASIER TO COMMUTE TO WORK. FREEWAY HAS POSITIVE EFFECT ON HOMES IN THE AREA |
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WHAT IS CONSTANT AND CAN BE PHYSICAL, NORMAL WEAR AND TEAR, AND EVEN ECONOMIC LIKE TAX LAW CHANGE OR ZONING CHANGE? |
CHANGE |
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. |
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AN IMPROVEMENT MAY ADD WHAT TO A PROPERTY? |
ADDED VALUE |
EX: HOUSE WITH A POOL IS HIGHER IN VALUE THAN A HOUSE WITHOUT A POOL |
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(ON TEST) THE USE OF THE PROPERTY THAT GENERATES THE GREATEST PROFITABILITY IS CALLED? |
HIGHEST AND BEST USE |
DEFINITION
EX: A VACANT LOT IN A DOWNTOWN AREA USED AS A PARKING LOT WOULD GENERATE MORE PROFIT AS A HIGH RISE OFFICE BUILDING. |
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WHAT MUST AN INDIVIDUAL DO IN ARIZONA TO BECOME AN APPRAISER? |
1) MINIMUM OF 150 HOURS OF EDUCATION 2) 2000 HOURS OF EXPERIENCE IN NO FEWER THAN 12 MONTHS 3) PASS A STATE EXAM |
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A LICENSED APPRAISER MUST HAVE HOW MANY HOURS OF CONTINUING EDUCATION? |
MUST COMPLETE 28 HOURS OF CONTINUING EDUCATION EVERY TWO YEARS. |
28 C E
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WHAT IS FIRREA ACT OF 1989 STAND FOR? |
FINANCIAL INSTITUTIONS REFORM, RECOVERY AND ENFORCEMENT ACT OF 1989 |
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(ON TEST) WHAT IS FIRREA (1989) ACT ESTABLISHED? |
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? |
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TITLE XI OF FIRREA INSURES WHAT? |
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." |
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ON PAGE 6 STOPPED HERE |
STOPPED HERE |
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THE BELIEF THAT A PROPERTY VALUE WILL INCREASE OR DECREASE BASED ON SOME FUTURE EVENT IS? |
ANTICIPATION |
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IT IS CONSTANT, CAN BE PHYSICAL AS IN FIRES OR FLOODS, OR IT CAN BE GRADUAL AS IN NORMAL WEAR AND TEAR OR UPGRADES? |
CHANGE |
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. |
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A RESULT OF SUPPLY AND DEMAND. |
COMPETITION |
DEFINITION |
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WHEN A PROPERTY CONFORMS TO THE OTHER PROPERTIES IN THE AREA, IT ACHIEVES ITS POTENTIAL MAXIMUM VALUE AKA ___________? |
CONFORMINITY |
EX: ALL HOMES IN AREA ARE OF SIMILAR ARCHITECTURAL STYLE AND CONFORM TO EACH OTHER |
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THE VALUE AN IMPROVEMENT ADDS TO A PROPERTY IS CALLED? |
CONTRIBUTION |
EX: ADDING POOL COST $30,000 MAY ONLY CONTRIBUTE A VALUE OF $15,000 REMEMBE: COST OF IMPROVEMENT DOES NOT EQUAL VALUE |
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(ON TEST) THE COST OF AN APPRAISAL IS BASED ON WHAT? |
TIME AND WORK INVOLVED |
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COST OF APPRAISAL IS NOT BASED ON THE VALUE OF THE PROPERTY BEING APPRAISED TRUE OR FALSE? |
TRUE, BASED ON TIME AND WORK INVOLVED |
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(ON TEST) WHAT ARE THE STANDARDS THE LICENSED APPRAISAL FOLLOWS IS CALLED? |
(USPAP) UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE |
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(ON TEST) THE RELATIONSHIP BETWEEN THE COST OF AN IMPROVEMENT AND THE VALUE IT ADDS TO THE PROPERTY IS CALLED? |
INCREASING AND DIMINISHING RETURNS |
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(ON TEST) COMBINING SMALL LOTS TOGETHER INTO ONE LARGER LOST RESULTING IN A GREATER VALUE. |
PLOTTAGE |
DEFINITIONS |
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(ON TEST)
THE LARGER LOT HAS A HIGHER VALUE THAN THE SUM OF THE SMALL LOTS SO THE LOTS ARE MERGED IS CALLED? |
ASSEMBLAGE |
DEFINITION |
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THE VALUE OF THE WORST HOUSE IN THE DESIRABLE NEIGHBORHOOD INCREASES IS CALLED? |
PROSESSION |
DEFINITION |
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THE LOSS OF VALUE A BETTER PROPERTY WILL SUFFER BECAUSE IT IS IN AN AREA OF LESSER VALUED HOMES? |
REGRESSION |
DEFINITION |
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WHEN SUPPLY INCREASES OR DEMAND DECREASES VALUE DECREASES IS A PART OF WHAT? |
SUPPLY & DEMAND |
S & D |
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THE AMOUNT THAT THE PROPERTY ACTUALLY SOLD FOR IS THE? |
PRICE |
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THE AMOUNT THAT A PARTY AGREES TO PAY IN OPEN MARKET IS? |
MARKET VALUE |
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THE AMOUNT TO CONSTRUCT IMPROVEMENT PLUS THE VALUE OF THE LAND IS? |
COST |
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THE COMPONENT OF VALUE THAT ADDRESSES THE USEFUL PURPOSE TO SATISFY A NEED IS? |
UTILITY |
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IF THE PROPERTY IS CURRENTLY BEING USED TO ITS GREATEST PROFITABILITY IT IS REFERRED TO AS? |
HIGHEST AND BEST USE |
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OVER IMPROVING A HOME BY ADDING A SECOND KITCHEN IS AN EXAMPLE OF? |
DIMINISHING RETURNS |
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A SINGLE FAMILY HOME LOCATED IN AN INDUSTRIAL AREA MAY NOT REACH ITS FULL VALUE BECAUSE OF THE PRINCIPLE OF? |
CONFORMINITY |
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AN INCREASE OR DECREASE IN VALUE BASED ON THE BELIEF THAT A FUTURE EVENT WILL AFFECT VALUE REFERS TO THE PRINCIPLE OF? |
ANTICIPATION |
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THE PROCESS OF MERGING SMALL LOTS INTO ONE LARGE PARCEL IS? |
ASSEMBLING |
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THE ECONOMIC PRINCIPLE OF MERGING SEVERAL LOTS INTO ONE LARGE PARCEL IS? |
PLOTTAGE |
HINT: ECONOMIC TO INCREASE THE VALUE |
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(ON TEST) APPRAISALS ARE PERFORMED ONLY BY WHOM? |
LICENSED APPRAISALS |
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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. |
CMA - COMPARATIVE MARKET ANALYSIS |
CMA |
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A CMA IS AN APPRAISAL TRUE OR FALSE |
FALSE APPRAISERS ARE ONLY CONCERNED WITH COMPARABLES THAT HAVE ACTUALLY SOLD WHEN DOING AN APPRAISAL |
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REAL ESTATE AGENTS ARE CONCERNED WITH SOLD PROPERTIES AND PROPERTIES THAT ARE CURRENTLY ON THE MARKET FOR WHAT ANALYSIS? |
CMA - COMPARATIVE MARKET ANALYSIS |
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(ON TEST) AN APPRAISAL IS A PROCESS OF DEVELOPING A WHAT? |
AN OPINION OF VALUE |
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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? |
TRUE |
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WHAT ARE THE THREE APPROACHES FOR APPRAISALS? |
SALES COMPARISON COST INCOME |
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(ON TEST) WHAT IS PERFORMED TO ARRIVE AT AN OPINION OF MARKET VALUE? |
RECONCILIATION |
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(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? |
RECONCILIATION |
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THE LAW THAT WAS CREATED TO OVERSEE STATE APPRAISAL STANDARDS AND QUALIFICATIONS IS? |
FINANCIAL INSTITUTIONS REFORM AND RECOVERY ACT (FIRREA) OF 1989 |
FIRREA |
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THE GENERALLY ACCEPTED STANDARDS FOR PROFESSIONAL APPRAISAL PRACTICE IN NORTH AMERICA ARE CALLED? |
UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE |
USPAP |
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WHAT DOES A REAL ESTATE LICENSEE PREPARE TO ASSIST SELLERS IN ARRIVING AT A LISTING PRICE? |
COMPARATIVE MARKET ANALYSIS |
CMA |
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WHAT IS THE DIFFERENCE BETWEEN AN APPRAISAL AND A CMA? |
CMA: SOLD, ACTIVE AND PENDING PROPERTIES APPRAISAL: ONLY SOLD PROPERTIES |
ONE USES SOLD ONLY PROPERTIES |
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THE APPRAISER'S COMPENSATION IS NOT BASED ON? |
VALUE OF THE HOME |
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THE PROCESS OF ANALYZING THE DATA AND ARRIVING AT AN OPINION OF VALUE IS REFERRED TO AS? |
RECONCILIATION |
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THE MOST COMMON APPRAISAL REPORT IS THE? |
URAR - UNIFORM RESIDENTIAL APPRAISAL REPORT |
URAR |
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THE SALES COMPARISON APPROACH IS ALSO CALLED THE? |
MARKET DATA APPROACH |
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COST APPROACH IS ALSO CALLED THE? |
SUMMATION APPROACH |
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CAPITALIZATION APPROACH IS ALSO CALLED THE? |
INCOME APPROACH |
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THE MOST FREQUENTLY USED AND ACCEPTED APPROACH TO DETERMINING VALUE IN REAL ESTATE IS? |
THE SALES COMPARISON/MARKET DATA APPROACH
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THE SALES COMPARISON APPROACH IS MOST COMMON METHOD FOR APPRAISING WHAT TYPE OF PROPERTY? |
RESIDENTIAL PROPERTY |
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THE ONLY METHOD THAT CAN BE USED FOR LAND IS THE? |
SALES COMPARISON APPROACH |
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THE APPROACH THAT VALUE BASES ITS OPINION OF VALUE ON WHAT SIMILAR PROPERTIES IN THE AREA HAVE SOLD FOR RECENTLY IS? |
SALES COMPARISON APPROACH |
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(ON TEST) PROPERTY BEING APPRAISED IS REFERRED TO AS? |
SUBJECT PROPERTY |
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(ON TEST) SIMILAR PROPERTIES IN THE AREA THAT HAVE SOLD RECENTLY ARE REFERRED TO AS? |
COMPARABLES |
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NO TWO PARCELS ARE EXACTLY THE SAME IS? |
NONHOMOGENEITY |
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IN APPRAISALS THE ADJUSTMENT ARE ALWAYS MADE TO THE? |
COMPARABLE PROPERTY |
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