15 - Appraisal Flashcards

0
Q

How is investment value best defined?

A

The value to an individual

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
1
Q

What type of value does an appraiser most commonly estimate?

A

Market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Which of the following conditions is necessary for the sales price of a property to equal its market value?

A

The transaction must involve a willing and informed buyer and seller

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is market value?

A

The amount that should be paid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

How is gross rent multiplier calculated?

A

By dividing comparable property sales price by comparable property rent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Functional obsolescence includes which of the following?

A

An over improvement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Which appraisal approach would be given greater weight when appraising an apartment complex?

A

Income approach

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Which appraisal approach is most suitable for estimating the value of a single-family property?

A

Comparable sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Which method may not be used to estimate replacement/reproduction cost?

A

Economic age-life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What estimate is the result of income divided by a capitalization rate?

A

Market value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

If income remains constant and the capitalization rate is reduced, which statement best describes the effect on value?

A

The value increases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly