Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Appraisal Class > Study > Flashcards

Study Flashcards

1
Q

What is SURPLUS LAND

A

A site being larger than standard, the additional size does not provide more utility.

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

If you have 2 lots that are the same size and each are worth seperately $50,000 and when you put them together as one property it is worth $200,000. What is this called?
What is if the total property was $100,000.

A

This is called Plottage.
It would be called Assemblage.
Assemblage- Process
Plottage - Value

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

COST APPROACH is best used for…….?

When is it difficult to do?

A
  • New construction
  • Specialized properties like Govt. Buildings, Churches, skating rink
  • DIFFICULTY: to do depreciation on older buildings
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

When should you use Direct comparison approach?

When is it difficult to use?

A
  • Good if Data current
  • Similar sales Data as far as Conforming/Similar (Similar looking single family residential homes)

DIFFICULTY: Adjustment may be difficult to Justify. Ex: Car garage vs no car Garage

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

2 ways to do INCOME APPROACH

A
  • Determining the properties NOI

* Deriving a cap rate

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

How do you reconcile all three approaches.

A
  • outline pros and cons of the approaches
  • Approaches should support each other
  • State opinion of FINAL ESTIMATED VALUE
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

The comparison of the approach is when you’re doing reconciliation should be within what percentage range

A

5-7%

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

First principles of value

A

PHYSICAL-
Land/Site itself and all the improvements
LEGAL- What you can and cannot do on a property So you search the title (Reading any easements or charges on the property)
FINANCING: any mortgages on the property. Any financing given by the purchaser or the vendor and how it was given Will probably affect the value
LOCATION: Real estate is fixed and cannot be moved to another location, What changes are taking place around the location of the property
PROPERTY RIGHTS: What is permissible on the property via the zoning and the community plan
PURPOSE OF APPRAISAL: If it is for a mortgage you need certain amount of data for that. If it is for a divorce settlement you need certain amount of data and be prepared in court as an expert witness.
HBU-to make sure that the property is being developed to its highest and best use which changes overtime. It is very important because it sets the value for the property
LAND USE REGULATIONS
ECONOMIC VARIABLES: interest rates
LEGAL ISSUES:
RESEARCH: Collecting data along the way and at the end come up with some sort opinion of value


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

COST definition is

A

Amount to CREATE an item

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

Objective value

A

Total COST to create

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

SUBJECTIVE VALUE: which acronym do you use for this?

A

U
S
E
D
UTILITY-the ability to satisfy a human need, want or desire
SCARCITY-The undersupply on an item
EFFECTIVE PURCHASING POWER: Ability to buy something.
DESIRABILITY: Purchasers wish to SATISFY your desires, or wants
E
D

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Highest and Best Use

A

A value considering alternative uses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Intended use or used value

A

Value of a property that is CURRENTLY used or for a SPECIFIC USE.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

T or F
The length of time that the item has been on the property is not a criterion for distinguishing between personal property and fixtures

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Appraiser has obligations to what 4 groups

A
  • Clients
  • third parties
  • society in general
  • the appraisal profession
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

When will an appraiser be required?

A 
Lending
Insurance
Real estate Transaction
Investments
Property Taxes
17
Q

What do Institutional Appraisers do?

A

Have one client are employed by that client such as
Mortgage Companies
Real Estate Development
Life Insurance Companies

18
Q

Government Appraisers are full time workers and do what?

A

Taxation
Assessments
Expropriation
Easements and Right of Way

19
Q

What 4 groups do Appraisers have obligations to?

A

Clients
Appraisal Profession
3rd Parties
Society

20
Q

Appraiser should follow what 3 characteristics

A

Integrity
Quality of Work
Competence

21
Q

who usually deals with ceiling price

A

Buyer

22
Q

who usually deals with floor price

A

Seller

23
Q

Are appraisers required to give subjective value or objective value?

A

Objective value

24
Q 
What do the following things describe: 
Age Distribution 
Education 
Crime Rates 
Pride of Ownership
A 
Social Factors affecting Real Property Values 
G
E
E
S
25
Q

What 4 Forces affect Property Values?

A 
4 Forces: 
Governments
Economic 
Environmental 
Social
26
Q

Our water leases and air parcels considered land

true or false

A

True

27
Q

Is estimating depreciation Via cost approach subjective or objective

A

Subjective

28
Q

Size
shape
location
similar to your subject property for evaluating land is the best way to find a Great comparable true or false

A

True

Appraisal Class (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions