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Real Estate Test > Appraisal > Flashcards

Flashcards in Appraisal Deck (10):
1

Which of the following is an appraisal?

An estimate of value

2

Which of the following represents external obsolescence?

Loss of value due to changes is the neighborhood.

3

When appeasing a commercial property, the appraiser is most concerned with:

Net annual income

4

The sales comparison approach is most important in estimating the value of a/an:

Existing residence

5

The income approach is most important in estimating the value of a/an:

Office building

6

The first step in the appraisal process should be to:

Determine the objective or problem.

7

Capitalization is a process to:

Convert income into present value.

8

Loss of value due to the property being unsuitably located is known as:

External obsolescence

9

In Appraising older structures, consideration must be given to:

Depreciation

10

When the capitalization rate increases, the value of the property:

Decreases