Unit 16 Flashcards
There are two vacant adjacent lots in an area zoned for commercial use, each worth approximately $50,000. If their owner sells them as a single lot, however, the combined parcel will be worth $120,000. What principle does this illustrate?
Plottage
A very small home with a single-car garage is for sale in a neighborhood where all other homes are at least twice as large and have three-car garages. The value of this home is MOST likely to be affected by what principle?
Progression
A sales associate or appraiser trying to estimate the market value of a property would be seeking
the probable price the property will bring.
If a property’s annual net income is $24,000 and it is valued at $300,000, what is its capitalization rate?
8%
The principle of value that is the interaction of supply and demand is called
competition.
New roofing is an example of curing
physical deterioration.
The principle that maximum value is realized when land use is in harmony with surrounding uses is
conformity.
An appraisal is
an opinion of value based on supportable evidence and approved methods.
An appraiser who is estimating operating expenses is using what method of valuation?
Income
The term reconciliation refers to which of the following?
Analyzing the results obtained by the different approaches to value to form an opinion of value
An appraiser asked for an opinion of the value of an existing shopping center would probably give the MOST weight to which approach to value?
Income approach
All of the following are characteristics that contribute to value EXCEPT
obsolescence.
Which of these reports would a sales associate MOST likely research and deliver to a prospective seller?
Comparative market analysis
An appraiser applying the cost approach to value will consider which of the following?
What is the process for creating a broker’s price opinion (BPO)?
The broker drives by the property, takes a picture, and fills out the BPO form.
