1 - Review Of Valuation Principles

Question 1

The last step, step 8, of The Valuation Process is…

Answer 1

Report of Defined Value

1-4

Question 2

The second to last step, step 7, is…

Answer 2

Reconciliation of Value Indications and Final Opinion of Value

1-4

Question 3

The sales comparison approach is based on research of comparable sales & _______

Answer 3

Listings

1-6

Question 4

The sales comparison method is ________ the preferred method when we have enough comparable sales

A Sometimes
B Always
C Usually
D Never

Answer 4

B ALWAYS

1-6

Question 5

___________ is the conversion of income into value

Answer 5

Capitalization

1-12

Question 6

T/F an appraiser can use a a GRM extracted from a 6 month old sale

Answer 6

True because GRM is a ratio and older sales typically reflect similar ratios

1-15

Question 7

In the principle of ____________ it is stated that if multiple similar options exist, the lowest price will attract the greatest demand

Answer 7

Substitution

1-16

Question 8

____________ is the perception that value is created by the expectation of benefits to be derived in the future

Answer 8

Anticipation

1-16

Question 9

_____________ is the concept that the value of a particular component is measured in terms of the amount it adds to the value of the whole property or as the amount that it’s absence would detract from the value of the whole

Answer 9

Contribution

1-17

Question 10

The principle of _______ is why we have an effective date on appraisals

A substitution
B balance
C change
D supply and demand

Answer 10

C Change

1-20

Question 11

The principle of _________ is the result of the cause and effect relationship among the forces that influence real property value

Answer 11

Change

1-20

Question 12

________ is the principle that real property value is created and sustained when contrasting, opposing, or interacting elements are in a state of equilibrium

Answer 12

Balance

1-21