Valuation And Market Analysis

Front 1

The term appraisal refers to

Back 1

A defensible opinion or estimate of value of real property as of a certain date

Front 2

Which approach to appraisal is best for existing single family residence?

Back 2

Comparison

Front 3

What would not be depreciated

Back 3

Unimproved land leased for open storage

Front 4

A home with 5 bedrooms a formal dining Room living Room family Room with one bath A den first floor utility Room is

Back 4

Suffering from functional obosolescence

Front 5

According to the principle of conformity a residential property maintains a higher value when it is

Back 5

In an area of similar properties

Front 6

The income cap technique uses

Back 6

Annual net income

Front 7

It would be unethical for an appraiser to

Back 7

Base her payment on a percentage of the appraised value

Front 8

Income capitalization is most likely to be used when the subject property is a

Back 8

Apartment complex

Front 9

Staff appraisers might be used by a

Back 9

Both a large corporation with many properties to manage and a large mortgage company reviewing hundreds of appraisals here

Front 10

An appraisal is the

Back 10

Supported opinion of value

Front 11

Which income is calculated by subtracting Vacancy and collection losses from gross income

Back 11

Effective gross income

Front 12

Using the market data approach how would an appraiser estimate the value of a second bath

Back 12

Analyze matched pair sales in the area

Front 13

Situs can be defined as

Back 13

In area a preference which Can attribute value

Front 14

The rule that says an item is worth only what it contributes in value to the property is the rule of

Back 14

Contribution

Front 15

What is an appraisal

Back 15

An opinion of value for the day of the appraisal only

Front 16

Which term best describes a piece of land that is enhanced and ready for a building or structure

Back 16

Site

Front 17

Capitalization rate refers to the

Back 17

Rate of return used by investors

Front 18

A property has been renting for 750 per month. Based on comparables, the GRM is 110 what is the indicated value of the property

Back 18

990000 The indicated value using a GRM is the (monthly rent ×12 (months)) × GRM in this case (750×12)×110 = 990000

Front 19

The subject property best describes the property

Back 19

For which the value is sought

Front 20

Which approach to value would be most appropriate when appraising a vacant factory?

Back 20

Cost approach

Front 21

When using the cost approach to appraise a property the appraiser is most likely working for the

Back 21

Insurance company trying to obtain a replacement cost on the property

Front 22

A 10 unit apartment building has an annual gross income of 5000 per unit a vacancy and collection loss of 5% is normal for the area. Annual expenses total 9250. The purchasers desire a 10% return on their investment how much should they be willing to pay for the property

Back 22

382,500 The value of the property equals net income divided by the rate of return. The formula is Gross income (50,000)- vacancy and collections (2,500)= effective gross income (47,500)- expenses (9,250)=net income (38,250). Net income (38,250)/ rate (10% or 0.10)= Value (382,500)