Real Estate: Valuation & Market Analysis

Front 1

the market data method of evaluating real property is based upon the principle of adjusted __________

Back 1

substitution

Front 2

definition:A reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed. The term is commonly used in real estate, but has a wide application.

Back 2

Functional Obsolescence

Front 3

When using the capitalization method, the appraiser will calculate all of the _________ expenses

Back 3

operating

Front 4

is a piece of land (open lot) depreciable?

Back 4

NOPE

Front 5

normal repairs of failing equipment within a building would be termed as

Back 5

corrective maintenance

Front 6

When there is an overall decrease in pricing, from an economic standpoint, it generally means a(n) _______ in interest rates

Back 6

increase

Front 7

Appraisers often need to consider current neighborhood influences when determining value on residential property. They usually set the boundaries of a residential neighborhood by _______ ________

Back 7

social likeness

Front 8

By dividing the annual net income by the most desirable rate of return, she can establish the

Back 8

income capitalization

Front 9

When a commercial property is located on a corner lot, an appraiser would estimate the value of the location as being at a ______ value

Back 9

higher

Front 10

The most significant difference between a staff appraiser and an independent fee appraiser is that they charge a _______ fee for each appraisal assignment.

Back 10

separate

Front 11

An appraiser may ethically Appraise a property __ ____, provided he disclose first his interest in the property.

Back 11

he owns

Front 12

How many feet are in an acre?

Back 12

43,560

Front 13

When establishing a capitalization rate using an income approach, the appraiser must consider two factors: the "rate on", which is known as expected return, and the "rate of, which is known as the rate of recapture. A "rate of" is determined by ___________

Back 13

depreciation

Front 14

When an investment is made in real estate, the usual rate of capital turnover is ______ than other commodities

Back 14

slower

Front 15

Relative to the construction of a house, a joist is a __________ beam

Back 15

horizontal

Front 16

The uppermost main structural support of a frame roof is the _____ _____

Back 16

ridge board

Front 17

When an appraiser employs the capitalization method, the most vital process would be to provide an ________ capitalization rate

Back 17

equitable

Front 18

A rate of return on a real estate investment property based on the expected income that the property will generage. 

Back 18

Capitalization Rate

Front 19

Within the appraisal process, a construction of any type is regarded as ___________

Back 19

improvement

Front 20

A lot located at the back of other lots, which is accessible by way of a long narrow driveway, is known as a ___ lot

Back 20

flag

Front 21

Residential properties are also known as _______ properties

Back 21

amenity

Front 22

the income approach is normally used when valuating _____ based properties

Back 22

income

Front 23

definition: Period during which the improvements to the land add value to the property

Back 23

economic life

Front 24

When comparing the Economic Life of a property with the physical life of the property, the economic life is _______ with all improvements

Back 24

shorter

Front 25

Becuase properties may be similar but not alike, the market data approach requires many comparisons. Comparables are adjusted to the _____________ of the subject property

Back 25

characteristics

Front 26

Incurable depreciation means that you cannot ______ the problem

Back 26

solve

Front 27

Negative outside influence would be termed as _________ depreciation

Back 27

incurable

Front 28

Tables showing estimated changes in value as the depths of the lots vary from any standard depth

Back 28

depth table

Front 29

An Appraiser would most likely use a depth table when determining a site valuation in regards to a ________ center

Back 29

shopping

Front 30

You use the land residual method to secure an estimation of ____ value

Back 30

land

Front 31

An appraiser prefers using the _____ comparison method when determining the value of unimproved property

Back 31

sales

Front 32

a cost of a new building of the same utility using modern materials

Back 32

replacement cost

Front 33

The replacement cost approach is easier to use when appraising a new property rather than an old property because of the amount of _________ that must be considered

Back 33

depreciation

Front 34

Something outside of the property that appreciates the property is known as ________ increment

Back 34

inearned

Front 35

A building with two units in one building would have a _____ wall

Back 35

party

Front 36

The assessed value of the property is only appraised during the _____ year of purchasing the property. Otherwise, It's the least important aspect of appraising property

Back 36

first

Front 37

T or F: In the replacement cost method, We are replacing the property, thus no depreciation to account for the valuation

Back 37

true

Front 38

A member of the American institute of Real Estate appraisers is officially designated as _._._

Back 38

M.A.I

Front 39

Appariser Jones failed to include the following factors: Maintenance costs and current vacancies, when she determined the capitalization rate on an income property. Under the circumstances, she would be guilty of ______________

Back 39

misrepresentation A

Front 40

How many miles square are in a township?

Back 40

1

Front 41

If an appraiser holds a cetrified residential license he has:

 

No $ limit on ___________ and a limited to $________ on non=residential

Back 41

residential, 250,000

Front 42

The most complete (and most expensive) form of appraisal report typically running 10 to 100 pages or more. Thorough enough to allow the customer to follow the appraiser's reasoning and examine the supporting documentation.

Back 42

Narrarative report

Front 43

using the capitalization method, appraiser Jones would not deduct ________ on liens when determining the net income of a commercial warehouse?

Back 43

interest

Front 44

When income property is being evaluated, the appraiser would make his adjusted value opinion of scheduled rent on ______ ____ comparison

Back 44

market rent

Front 45

 

When the inside surfaces of the outside walls of a building is the same temperature as the interior air space, the building is thought to have an________ insulation

Back 45

adequate

Front 46

Definition: this is the second to last step. In this step, The appraiser estimates value by the three approaches, then reconciles the three values, and selects the value from the approach that is best suited for subject property

Back 46

Reconciliation Process

Front 47

Using the Comparative Approach, appraiser Jones will compare currently sold properties with the assigned property using a process of substitution. When the assigned property has a feature that is not present in the comparable property, that feature value would be _____ to the selling price of the comparable property

Back 47

added

Front 48

The first step an appraiser would take when asked to appraise a property is to define the _______

Back 48

problem

Front 49

An appraiser chooses to use an unconventional appraisal method in order to sway an FSLIC or FDIC insured lender, his actions would make him guilty of a ______

Back 49

felony

Front 50

 

When property taxes increase on income producing property and all other costs remain the same, based on the existing capitalization rate, the property value will _______ by more than the amount equal to the tax increase

Back 50

decrease

Front 51

Acronym when a temperature control unit is highly efficient

Back 51

EER

Front 52

Within the appraisal process, the interior of a residential home is regarded as _________ ____

Back 52

Functional Zones

Front 53

During the appraisal of a hillside residential single family home, Jones noticed a perceptible forward slope to the property. She also became aware of separation cracks where the front porch joined with the main structure of the house. As a result of her findings, she would probably recommend a ____ engineer report

Back 53

soil

Front 54

When an appraiser employs the capitalization method, the most vital process would be provide   an equitable ____________ rate

Back 54

capitalization

Front 55

The Highest degree of capable income any income producing property can generate is the _________ gross income

Back 55

potential

Front 56

Gonzales owns a tri-plex income property. during the last tax year, he sustained a $27,000 operational loss. Gaonzales can use the loss to offset part of the capital gain when he sells the property when he sells the property. true or false?

Back 56

true

Front 57

definitino: Shows the placement of improvements on the lot

Back 57

plot plan

Front 58

R-Value means resistance to ____ transfer

Back 58

heat

Front 59

The useful accuracy of the cost approach becomes limited when appraising an _____ structure in a stable neighborhood

Back 59

older

Front 60

A shift in ______ value when the property is sold, is an indication of a capital gain/ loss

Back 60

market

Front 61

An appraiser would most likely use a  "Depth table" when determining a site valuation in regards to a ________ ______

Back 61

shopping center

Front 62

An appraiser prefers using _____ ________ method when determining the value of unimproved property

Back 62

Sales comparison

Front 63

Appraisers are subject to obligations and responsibilities regarding conduct, management, confidentiality, standards and record keeping. These actions are influenced by the requirements of the _____

Back 63

USPAP

Front 64

The Footing of a house is a ______ distributing concrete course upon the foundation is set

Back 64

weight

Front 65

When depreciation is taken on real property, the basic value is _______

Back 65

reduced

Front 66

When appraising a property, the appraiser does not usually consider the tax __________ value

Back 66

assessment

Front 67

you typically use the ____ appoach when appraising special purpose property

Back 67

cost

Front 68

a dwelling which contains a party wall would be considered ________

Back 68

attached

Front 69

Appraiser jones would probably use the ______ ____ method to estimate the value of vacant land  that the owner tends to subdivide

Back 69

market datA

Front 70

An evalation sheet would depict a drawing of the finished front and side views of the _________

Back 70

structure

Front 71

The Inwood Method and the Hoskold (sinking fund) method are theories in the field of __________

Back 71

appraisal

Front 72

If current highest and best use is to change, current use is called _______ use

Back 72

interim

Front 73

When amenity-type properties are appraised, the method generally used is ______ __________

Back 73

market comparison

Front 74

The useful accuracy of the cost approach becomes limited when appraising an older structure in a ______ neighborhood

Back 74

stable