Valuation and market analysis #1

Question 1

appraisel

Answer 1

a formal opinion in value that a real estate appraiser assigns, based on supportable evidence, for a specific purpose, party, property.

Question 2

appraisers

Answer 2

estimate the value of a building or a piece of land

Question 3

valuation

Answer 3

the process of forming an opinion of a property value

Question 4

the appraiser used 7 steps but asked for 4 in the test to appraise a building or land which are

Answer 4

1. state the problem
2. identify data needed
3. gather and analyze
4. data determine the highest and best use

Question 5

cost

Answer 5

the amount to recreate a property if it disappears over the face of the earth today

Question 6

market price

Answer 6

is the amount a buyer pays for a property and the seller accepted

Question 7

value

Answer 7

is a property worth and may not equal price or cost

Question 8

market value

Answer 8

is the most probable price a property will sell for in an open market if neither the buyer nor seller is under duress

Question 9

4 characteristics of value are…

the acronym for this is DUST

Answer 9

1. Demand = how popular or desired property is
2. Utility = The property function
3. Scarcity = relates to market supply
4. transferability = the ease with which another person can purchase the property.

Question 10

Principal of conformity

Answer 10

a property value determined by how similar it is to the neighborhood or how well it conforms to its surrounding area
(like if it placed in another place with different houses it losses value than being on a place where all the houses are the same)

Question 11

Principal of progression

Answer 11

the idea that the value of a house increases when more valuable houses are built in the area.

Question 12

Principal of regression

Answer 12

that the value of the high-end real estate may be diminished by having lower-end properties in the same vicinity.

Question 13

Principal fo assemblage

Answer 13

When two parcels (or more) of land are combined to be sold as one parcel together,

Question 14

Principal of plottage

Answer 14

increase in value that occurs when two adjacent parcels are combined into a single one

Question 15

Principal of anticipation

Answer 15

a method by an appraiser where the appraiser uses the income approach to determine the value of a property. The appraiser will estimate the present worth of future benefits for the property.

Question 16

Principal of contribution

Answer 16

states how an additional improvement could affect the values of the overall properties

Question 17

The principle of substitution

Answer 17

A prudent investor would pay no more for an income-producing property than it would cost to build or purchase a similar property.

Question 18

the principal of competition

Answer 18

what else is available

Question 19

the sales comparison approach

Answer 19

a real estate appraisal method that compares one property to comparables or other recently sold properties in the area with similar characteristics. .

Question 20

cost approach

Answer 20

a real estate valuation method that estimates the price a buyer should pay for a piece of property is equal to the cost to build an equivalent building. In the cost approach, the property’s value is equal to the cost of land, plus total costs of construction, less depreciation.

Question 21

External depreciation (aka economic obsolescence)

Answer 21

caused by factors outside of the property like the airport nearby causing noise etc.

Question 22

Functional obsolescence

Answer 22

form of depreciation caused by defects in design

or loss in value

Question 23

physical deterioration

Answer 23

occurs with wear and tear

Question 24

comparative market analysis (CMAs)

Answer 24

help clients make price decisions

Question 25

2 types of physical depresiation are....

Answer 25

curable and uncurable

Question 26

The assessed value

Answer 26

is a property's determined valuation to calculate the appropriate tax rates. An assessment considers sales of similar homes, as well as home inspection findings, in its final determinations. When it comes to selling a home, the assessed value is the most widely accepted dollar value of your home

Question 27

market value

Answer 27

refers to the actual value of your property when placed at a sale on the open market. It's determined by buyers and defined as the amount they are willing to pay for purchasing the home.

Question 28

Who typically prepares a comparative market analysis? CMA

Answer 28

Who typically prepares a comparative market analysis?

Question 29

Which department typically decides which development projects require a permit or approval?

Answer 29

building department

Question 30

The primary purpose of the Real Estate Settlement Procedures Act is to ensure that buyers ______.

Answer 30

Know all settlement costs up front

Question 31

What's another term for a valuation that's an unbiased opinion of value?

Answer 31

Formal appraiser

Question 32

Maxine is purchasing a small craft shop, including the underlying real estate. She applies for a commercial loan from her federally insured bank to complete the purchase. Is Maxine’s transaction covered by the Real Estate Settlement Procedures Act?

Answer 32

No; commercial and business loans are exempt from RESPA requirements.

Question 33

Which of the following statements is true regarding timeshare estates?

Answer 33

Timeshare estates can be sold or passed down to heirs.

Question 34

Which of the following is a promise from the borrower to repay a certain sum of money to another party (the lender or holder of the note) under specified terms?

Answer 34

promissory note

Question 35

What's a quiet title action?

Answer 35

An action to locate and notify all who may have some claim on the title, and determine the validity of all claims

Question 36

Over how many years is a residential income-producing property depreciated?

Answer 36

27.5 years

Question 37

Marlon and Leah are interested in buying a home in a new homeowner opportunity area. The 100-year-old row house was renovated and is like new on the inside. The property taxes decreased by more than $5,000 last year. What’s the likely reason for this?

Answer 37

tax abadement

Question 38

a tax abadament program

Answer 38

will lower the property taxes on a given property for a set amount of time. This is typically in response to some sort of improvement or rehabilitation, or for some new construction properties.

Question 39

Identifying the purpose of the appraisal leads the appraiser to do what next

Answer 39

identifying data needed

Question 40

What is the purpose of the interstate land sales full disclosure act?

Answer 40

To prevent the fraudulent sale of property across state lines

Question 41

Compared to working without a buyer agency agreement, who works under a buyer agency____

Answer 41

Receipts a higher level of service

Question 42

What's the definition of a land contract

Answer 42

Sellers provide funds or credit to buyers in order to close the transaction. The buyer makes payments directly to the seller

Question 43

Proposed Sony ordinances must undergo test to determine their validity. this test include which of the following question?

Answer 43

Ordinances must not be discriminatory

Question 44

When a lower quality property is adjacent to a higher quality property, it can diminish the value of the higher quality property that what economic principle values is

Answer 44

Regression

Question 45

What might did financial implications be if I buyer needed to use individual retirement account funds towards a down payment

Answer 45

First time home buyers can use up to $10,000 of their IRA funds penalty free for down payment and closing cost

Question 46

Which type of commercial leads does the tenant pay some or all the expenses?

Answer 46

With the net lease net lease

Question 47

System home buyers can access an additional amount up to $---- of their ira accounts over and above withdrawals equal to their contributions

Answer 47

10,000

Question 48

What organization administers and enforces the brokers act through the licensing process?

Answer 48

The Maryland Real estate commission

Question 49

Your meeting with prospective clients in person for the first time that what are you required by law to explain to them

Answer 49

The types of agency relationships they may have with a real estate professional

Question 50

Which act gives companies the right to sue a competitor for making the deceptive ad claims

Answer 50

The lanham act

Question 51

How do predatory lenders take advantage of consumers?

Answer 51

Making loans to consumers who can afford them

Question 52

When perspecting and soliciting for new business, licenses should be familiar with which feather act question

Answer 52

Did you not call inflammation act, can spam act, and junk fax prevention act

Question 53

How many approaches to value do your prices generally use question

Answer 53

They used 3 approaches the cells compression, close to reproduce, and income

Question 54

What type of tendency can be automatically created if a tenant under at least stays beyond the leases terms, and the landlord continues to accept rent from the tenant?

Answer 54

Month to month tenancy

Question 55

What happens when a married couple who owns a property as tenants by the entirety divorce?

Answer 55

Their ownership changes to tenants in common

Question 56

Which of the following is an action that real estate licensees may take without practicing law illegally?

Answer 56

Use existing forms that an attorney has reviewed

Question 57

Who generally rides a broker's price opinion?

Answer 57

A real estate broker for a lender

Question 58

Which of the following financing types involves the cell of personal property with real property

Answer 58

Package

Question 59

When must informed consent for dual agency be obtained

Answer 59

At the time with the licensing and customer have entered into an agent client relationship

Question 60

Which of the following is a potential drawback to a real property exchange?

Answer 60

Taxable gains

Question 61

Eastman's are a type of encompass that can affect the property that which of the following is true about Eastman's

Answer 61

Eastman's are often established by written agreement between the parties

Question 62

What instruments are commonly used to secure the purchase of real property?

Answer 62

A mortgage and deed of trust