unit 3 property value and appraisal Flashcards Preview

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Flashcards in unit 3 property value and appraisal Deck (10)
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1

property taxes are based on market value

false
property taxes are based on assessed value

2

it is the function of the appraiser to establish market price

false
it is the function of the appraiser to estimate market value

3

physical, local, economic, and social are the four elements of value

false
the four elements of value are demand, utility, scarcity, and transferability (DUST)

4

replacement cost is the present cost of replacing an improvement with another having the same utility

true

5

a property with outdated electrical service and plumbing is suffering from physical depreciation

false
an example of functional obsolescence is an negative effect due to outdated plumbing. it is usually curable

6

the principle of substitution underlies all approaches to value

true

7

rotting wood is an example of functional obsolescence

false
rotting wood is an example of physical deterioration and depreciation

8

a BPO completed by a salesperson or broker may be used for appraisal purposes

false
a BPO must clearly note that it is not an appraisal

9

james built a $150,000 home in a neighborhood where the average price range is $60,000 - $75,000. james's home value will suffer due to progression

false
regression is negative, whereas progression is a positive aspect

10

capitalization is used to determine the value of unique properties

false
capitalization is used to determine the value of income-producing properties