N9 Appraisal

Question 1

An estimate of opinion of value.

Answer 1

Appraisal

Question 2

Four Major Elements of Value:

1. _____________
2. _____________
3. _____________
4. _____________

Answer 2

1. Demand
2. Utility
3. Scarcity
4. Transferability

NOTE: use DUST

Question 3

Market Value

Answer 3

The amount a willing buyer will pay and a willing seller will accept.

Question 4

A transaction in which the parties are dealing from equal bargaining positions.

Answer 4

Arm’s Length Transaction

Question 5

Market Price

Answer 5

The actual amount of money given in a transaction.

Question 6

The amount of money required to build a building at current prices.

Answer 6

Cost

Question 7

The principal of _________ states that value is affected by the scarcity of a product and the desire for that product.

Answer 7

Supply & Demand

Question 8

Highest and Best Use

Answer 8

The use of a property that produces the highest net return.

Question 9

Land that is not needed to accomplish the highest and best use.

Answer 9

Excess Land

Question 10

The principal of _________ states that the most a person will pay for a product is set by what it costs to buy a reasonable duplicate.

Answer 10

Substitution

Question 11

That value will tend to be more stable in an area where there is a reasonable degree of similarity of property types is a statement of the principal of ___________.

Answer 11

Conformity

Question 12

The principle of _______ holds that the presence of lesser properties will adversely affect the value of greater properties.

Answer 12

Regression

Question 13

The principle of ______ holds that the value of a component part is determined by how much that part adds to or detracts from the value of the whole.

Answer 13

Contribution

Question 14

The fact that values do not remain constant is a statement of the principle of _______.

Answer 14

Change

Question 15

The principle of ________ holds that excess profits will breed competitors, which will then reduce profits.

Answer 15

Competition

Question 16

The fact that value is affected by the anticipation of future events is a statement of the principle of ________.

Answer 16

Anticipation

Question 17

Appreciation

Answer 17

An increase in value for any reason.

Question 18

Increase in value due to the owner’s efforts.

Answer 18

Earned Increment

Question 19

Unearned Increment

Answer 19

An increase in value due to no effort by the owner.

Question 20

Plottage AKA Assemblage.

Answer 20

An increase in value created by joining smaller parcels into one larger parcel.

Question 21

Depreciation

Answer 21

A decrease in value for any reason.

Question 22

Deterioration

Answer 22

A loss in value due to physical wear and tear.

Question 23

A loss in value due to outdated features such as an old bathroom or kitchen.

Answer 23

Functional Obsolescence

Question 24

A loss in value created by technological advances.

Answer 24

Functional Obsolescence

Question 25

A loss in value created by a poor floor plan.

Answer 25

Functional Obsolescence

Question 26

Curable

Answer 26

When it is economically feasible to fix a defect.

Question 27

When it is not economically feasible to fix a defect.

Answer 27

Incurable

Question 28

A loss in value that results from conditions outside the property.

Answer 28

Economic Obsolescence AKA External Obsolescence

Question 29

The three appraisal approaches are: 1. ______________ 2. ______________ 3. ______________

Answer 29

1. Comparison aka Market Data 2. Cost aka Summation 3. Income aka Capitalization

Question 30

Estimating the value of a property by comparing the subject property to similar properties that have recently sold .

Answer 30

Comparison aka Market Data

Question 31

In a Comparison Approach (Market Data Approach), an appraiser should use comparable properties that were sold "____________________"

Answer 31

" At Arm's Length"

Question 32

A minimum of ____ comparables should be used when using the market data approach/comparison approach..

Answer 32

3 or Three

Question 33

In the comparison approach/market data approach, adjustments are often made to bring the ____ properties in line with the ____ property.

Answer 33

Comparable, Subject

Question 34

The property with the______ adjustments is the most comparable.

Answer 34

Fewest/Least.

Question 35

What is the math Formula For the Cost Approach/ Summation Approach?

Answer 35

``` Replacement Cost - Depreciation + Land Value _________________ = Appraised Value ```

Question 36

Replacement Cost

Answer 36

The cost to build a reasonable duplicate of a building at today’s prices.

Question 37

The cost to build an EXACT duplicate of a building at today’s prices

Answer 37

Reproduction Cost

Question 38

In the cost approach/summation approach, the land value is most often estimated by using the __________.

Answer 38

Comparison Approach/Market Data Approach

Question 39

Determined by measuring the exterior dimensions of the exterior walls of a building.

Answer 39

Square Footage Living Area