Appraisal

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LAMERBOI
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188548
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Appraisal
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2012-12-14 01:57:07
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Appraisal
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Residentual Analysis and Highest and Best Use Ch.1-2
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  1. The person who engages the appraiser for an assignment.
    Client
  2. A Valuation service that results from an agreement between an appraiser and a client.
    Assignment
  3. An assignment of value for a specific moment in time based upon historical data.
    A. Retrospective Appraisal
    B. Prospective Appraisal
    C. Future Value
    Retrospective Appraisal
  4. An assignment for a future value of a present interest.
    A. Retrospective Appraisal
    B. Prospective Appraisal
    C. Future Value
    Prospective Appraisal
  5. The type and extent of research necessary to produce credible results in an assignment.
    Scope of work
  6. The assignment of value for a prospective or hypothetical appraisal.
    Future Value
  7. The rate of interest used in the process of determining value based upon net income.
    1. Gross rate
    2. Specialization Rate
    3. Interest Rate
    4. Capitalization Rate
    Capitalization Rate
  8. A comparable listing service conducted by a group of brokers (usually members of a real estate association) tp provide an inventory of all available properties in an area.
    MLS (Multiple listing service)
  9. An appraisal method based on the principles of substitution that compares similar properties, which have recently sold, to the subject property.
    Sales comparison approach
  10. Adjustments made because of changing market.
    Time adjustment
  11. An analysis of competitive rents used to identify the amount of income the subject property might generate.
    A. Rental income
    B. Rental Survey
    C. Market Sales Analysis
    D. Market Trend Analysis
    Rental Survey
  12. A method of estimating the amount of adjustment for the presence or absence of any feature by pairing the sales prices of otherwise identical properties with and without that feature.
    Paired sales analysis
  13. The identication, research, and analysis of market sales within the location of the subject property.
    A. Market trend analysis
    B. Trend analysis
    C. Market sales analysis
    D. Research analysis
    Market sales analysis
  14. The adjustment process of weighing results of the three appraisal methods to arrive at a final estimate of the subject property's market value
    A. Reconciliation
    B. Time adjustment
    C. Regression
    D. Bracketing
    Reconciliation
  15. The selection of market data so that the subject is contained within a range of data sales.
    Bracketing
  16. What does the first step in the appraisal process involve?
    Conversing with the client.
  17. Jon is interviewing a client to get the details for an appraisal assignment. The client is requesting that Jon find the future value for a new property, which has yet to be built. What type of appraisal is the client requesting?
    Prospective Appraisal
  18. A source of gathering information is a group of brokers who collectively provide an inventory of sales listings in a specific area.
  19. An appraiser using the sales comparison approach would verify market data by:
    A. Comparing the gathered data with Data Quick.
    B. Reconciling data
    C. Finding the motivating factors of buyers and sellers.
    D. Collecting trends.
    C. Finding the motivating factors of buyers and sellers.
    (this multiple choice question has been scrambled)
  20. Other than using sales comparables with similar attributes, what are other factors to consider when making adjustments to value in the sales comparison approach?
    A. Average per capita income
    B. Familial values in the neighborhood
    C. Special financing arrangements
    D. Quality of educational institutions.
    C. Special financing arrangements
    (this multiple choice question has been scrambled)
  21. In order to determine whether a location is superior or inferior, an appraiser:
    A. does a time adjustment.
    B. does both B and D
    C. does both A and D
    D. performs a market sales analysis
    E. does both a and b
    F. analyzes market conditions.
    D. performs a market sales analysis
    (this multiple choice question has been scrambled)
  22. The sale of a property that was several months ago would require a time adjustment through a:
    A. prospective appraisal.
    B. market trend analysis.
    C. paired sales analysis
    D. retrospective appraisal.
    C. paired sales analysis
    (this multiple choice question has been scrambled)
  23. What is the primary difference between a paired sales analysis and a market sales analysis?
    A. A paired sales analysis considers properties in the same location.
    B. A market analysis examines various properties in different locations.
    C. A paired sales analysis examines two identical properties.
    D. A market analysis considers two identical properties.
    C. A paired sales analysis examines two identical properties.
    (this multiple choice question has been scrambled)
  24. An appraiser is using the sales comparison approach to examine two properies in two different neighborhoods. A comparable sales int he subject property's neighborhood was $250,000 and in a sale from a competing neighborhood, the price was $225,000. What is the % difference in the prices?
    A. 15%
    B. 10%
    C. 7%
    D. 12%
    B. 10%
    (this multiple choice question has been scrambled)
  25. An appraiser conducts a rental survey by: 
    A. identifying non owner-occupied properties using public or private sources. 
    B. determining a property's future use and potential benefits.
    C. identifying suitable comparables.
    D. examining local zoning laws that may affect the future use.
    A. identifying non owner-occupied properties using public or private sources.
    (this multiple choice question has been scrambled)
  26. An appraiser, estimating a rental schedule for a subject property, can use it to:
    a. account for differences in the elements of comparison.
    b. develop gross rent multipliers.
    c. develop capitalization rates.
    d. all of the above.
    d. all of the above. pg 15
  27. After an appraiser analyzes the data, what is the next step?
    A. Market trend analysis
    B. Bracketing
    C. Determining the scope of work
    D. Reconciliation
    D. Reconciliation
    (this multiple choice question has been scrambled)
  28. After completing the adjustments, the appraiser decides on which appraisal method will bring the best results. The next step is to develop a(n):
    A. time adjustment
    B. opinion of value 
    C. appraisal report
    D. reconciliation
    B. opinion of value 
    (this multiple choice question has been scrambled)
  29. The idea that the price of comparable sales will not all be more or less than the subject property's value is:
    A. effective demand
    B. consistency
    C. bracketing
    D. rising and declining
    C. bracketing
    (this multiple choice question has been scrambled)
  30. Appraisers should review their reports for accuracy and avoid violations under the:

    USPAP
    Uniform Standards Professional Appraisal Practice
  31. Accepted Standards of right and wrong, moral conduct, behavior, or duty.
    Ethics
  32. Mnemonic (assisting or intended to assist the memory.) for compliance with USPAP
    • CARL
    • Choice, Agreement, Regulation, Law
  33. Lenders refusing to make loans in certain geographic areas.
    redlining
  34. Market in which the original lender resells a packaged loan in a bundle with other loans or individually to another investor.
    A. Secondary mortgage market.
    B. Primary mortgage market
    C. Lender Market.
    D. Loans market.
    A. Secondary mortgage market.
    (this multiple choice question has been scrambled)
  35. Direct or indirect pressure by a lender on an appraiser to estimate a property's value at a certain amount.
    lender pressure
  36. Skill set of experience of knowledge
    Competency
  37. Necessary understanding of local market conditions
    A. Topography competency
    B. Competency
    C. Geographic competency
    D. Supply and Demand
    C. Geographic competency
    (this multiple choice question has been scrambled)
  38. The best use of the land.
    Highest and best use
  39. The magnitude of the use of the land.
    Feasibility.
  40. Temporary committee formed for a particular need.
    A. Ad hoc committee
    B. Appraisal committee
    A. Ad hoc committee
  41. The framework of USPAP document.
    1. STANDARD FORM I
    2. STANDARD FORM II
    3. PREAMBLE
    4. CARL
    3. PREAMBLE
  42. Opinion issued to illustrate the applicability of appraisal Standards in specific situations and to offer advice from the Appraisal Standards Board (ASB) for the resolution of appraisal issues and problems.
    A.Advisory Opinion
    B.Appraisal Opinion
    C.Advice Opinion
    A.Advisory Opinion
    (this multiple choice question has been scrambled)
  43. Standard that covers the requirement to developing a real estate appraisal.
    Standard Form I
  44. A series of Rules that specific what appraisers must do.
    A. Appraisal Rules
    B. USPAP
    C. Standards Rules
    d. All of the above
    C. Standards Rules
    (this multiple choice question has been scrambled)
  45. Process of buying a property at one price and quickly selling it to another at an inflated price.
    Flipping
  46. All parties involved are acting in their own self-interest and are under no undue influence or pressure from other parties.
    Arms-length transaction
  47. The Standard that covers the requiements for reporting a real estate appraisal.
    Standards II
  48. The most details appraisal report.
    A. Restricted Use Appraisal Report
    B. Self-contained Appraisal Reportb.
    C. Summary Appraisal Report
    B. Self-contained Appraisal Reportb.
    (this multiple choice question has been scrambled)
  49. The least detailed appraisal report.
    A. Restricted Use Appraisal Report
    B. Summary Appraisal Reportc 
    C. Self-contained Appraisal Report
    A. Restricted Use Appraisal Report
    (this multiple choice question has been scrambled)
  50. The appraisal report that fulfills the m inimum requirements for lenders to process their loans.
    A. Self-contained Appraisal Report
    B. Summary Appraisal Report 
    C. Restricted Use Appraisal Report
    B. Summary Appraisal Report 
    (this multiple choice question has been scrambled)
  51. To promote and preserve the public trust inherent in professional appraisal practice, an appraiser must:
    A. be good at convincing a third party.
    B. make the appraisal work for the clients needs at all costs.
    C. never confirm information that takes more than an hour to retrieve.
    D. observe the highest standards of professional ethics.
    D. observe the highest standards of professional ethics
    (this multiple choice question has been scrambled)
  52. An appraiser took a market value assignment for an older California Bungalow style, single-family home. After researching the neighborhood, the appraiser discovered that the residential properties could be rezoned for commericla use. In fact, several homes had already been rezoned, renovated, and turned into office space for attorneys and other professionals. The appraiser gave the completed report to the client, the report was for residential use, which was much lower than for commercial use. Then, the appraiser told the client about a buyer for the property if the client was interested. The buyer (Tom) was the brother of the appraiser. Tom purchased the property at the lower value, had the property rezoned commercial, renovated the property, and sold it at a much higher price for a huge profit that he shared with his brother. In this situation, the appraiser:
    A. acted unethically
    B. should look for more homes in the neighborhood.
    C. made a nice profit.
    D. did nothing wrong.
    A. acted unethically
    (this multiple choice question has been scrambled)
  53. Appraiser cannot be advocates for:
    A. anyone's cause
    B. their own cause
    C. themselves
    D. a personal cause
    A. anyone's cause
    (this multiple choice question has been scrambled)
  54. An appraiser must not misrepresent his or her role when providing valuation services that are.
    A. for land developer.
    B. outside appraisal services
    C. prepaid
    D. for a property in another state.
    B. outside appraisal services
    (this multiple choice question has been scrambled)
  55. An appraiser must not accept an assignment that includes the reporting of:
    A. outside appraisal services
    B. for land developers
    C. for a property in another state.
    D. predetermined opinions and conclusions
    D. predetermined opinions and conclusions
    (this multiple choice question has been scrambled)
  56. The payment of undisclosed fees, commissions, or things of value in connection with the procurement of an assignment is:
    A. not necessary
    B. unethical
    C. business as usual.
    D. considered political behavior
    B. unethical
    (this multiple choice question has been scrambled)
  57. Appraiser pressure comes from:
    a. mortgage brokers
    b. real estate brokers
    c. homebuyers.
    d. all of the above
    d. all of the above
  58. Ethics is a mindset whereas competency is:
    A. not required.
    B. a skill set.
    C. a result of valuation.
    D. unwanted.
    B. a skill set.
    (this multiple choice question has been scrambled)
  59. An appraiser who is not competent to take an assignment must do all of the following, except:
    A. disclose the lack of knowledge and/or experience to the client before accepting the assigmnment.
    B. disregard his or her lack of competency and accept the assignment
    C. describe the lack of knowledge and/or experience and the steps taken to complete the assignment competently in the report.
    D. take all steps necessary or appropriate to complete the assignment competently
    B. disregard his or her lack of competency and accept the assignment
    (this multiple choice question has been scrambled)
  60. Which statement is correct regarding highest and best use and feasibility?
    A. Highest and best use is the same as feasibility.
    B. Highest and best use is not a necessary part of an appraisal
    C. The highest and best use refers to the use of the land while the feasibility of such a study is the magnitude of that use.
    D. The highest and best use refers to the magnitude of that use while the feasibility of such a study is the use of the land.
    C. The highest and best use refers to the use of the land while the feasibility of such a study is the magnitude of that use.
    (this multiple choice question has been scrambled)
  61. The basic steps that have always been necessary int he development of an appraisal report are covered in:
    A. STANDARD 1
    B. STANDARD 2
    C. the PREAMBLE
    D. Advisory Opinions
    D. Advisory Opinions
    (this multiple choice question has been scrambled)
  62. All appraisals performed in connection with federally-related transactions must:
    A. be in at least 12 point type
    B. be in written form
    C. use a promulgated format
    d. all of the above
    B. be in written form
    (this multiple choice question has been scrambled)
  63. An oral report:
    A. must at least meet the requirements for a sumamry report
    B. would be waived
    C. is not permissible
    D. is inappropriate.
    A. must at least meet the requirements for a sumamry report
    (this multiple choice question has been scrambled)
  64. Which appraisal report option would not be used for the common lender appraisal?
    A. URAR
    B. Summary Appraisal Report
    C. Restricted Use Appraisal Report
    D. Self-Contained Appraisal Report
    C. Restricted Use Appraisal Report
    (this multiple choice question has been scrambled)
  65. If the client does not specifically state the desired report format, the report should at least meet the requirements of a(n):
    A. Summary Appraisal Report.
    B. Oral Appraisal Report.
    C. Self-Contained Appraisal Report.
    D. Restricted Use Appraisal Report.
    A. Summary Appraisal Report.
    (this multiple choice question has been scrambled)
  66. The monetary relationship between properties and those who buy,sell, or use those properties.
    A. Demand
    B. Economics
    C. Value
    D. Supply
    C. Value
    (this multiple choice question has been scrambled)
  67. The most probable price real estate should bring in a sale occurring under normal market conditions.
    Market Value
  68. The desire to purchase a commodity
    Demand
  69. The ability of a property to satisfy a need or desire, such as shelter or income 
    Utility
  70. The combination of adequacy, usefulness, and desireability in the interior planning of a structure
    A. superadequacy
    B. gentrification
    C. value
    D. functional utility
    D. functional utility
    (this multiple choice question has been scrambled)
  71. The lack of supply of some type of real property resulting in increased value when demand exceeds supply.
    A. scarcity
    B. diminished value of excess
    C. revitalization
    D. progression
    A. scarcity
    (this multiple choice question has been scrambled)
  72. The element of value that allows a person to transfer ownership of the property to someone else.
    Transferability
  73. The principle that indicates the value of a property cannot exceed the value of equivalent properties in a give market area.
    A. principle of change
    B. principle of substitution
    C. principle of contribution
    D. principle of conformity
    B. principle of substitution
    (this multiple choice question has been scrambled)
  74. The principle which states that supply and demand fluctate up or down in response tot eh economic, social, or other influences affecting value.
    A. Principle of change
    B. Principle of balance
    C. Principle of externalities
    D. Principle of contribution
    A. Principle of change
    (this multiple choice question has been scrambled)
  75. The second stage of a neighborhood life cycle, which is also known as maturity or equilibrium. (extra note - Gentrification - is a form oa revitalizationa nd occurs when run down properties in a lower income area are renovated or rehabilitated.)
    A. decline
    B. revitalization
    C. growth
    D. stability
    D. stability
    (this multiple choice question has been scrambled)
  76. A form of revitalization and occurs when run-down properties in a lower income area are renovated or rehabilitated.
    Gentrification
  77. The principle that states value is affected by the expectations of buyers of future benefits of a property.
    A. Principle of anticipation
    B. Principle of contribution
    C. Principle of conformity
    D. Principle of balance
    A. Principle of anticipation
    (this multiple choice question has been scrambled)
  78. The principle stating that property value is created and maintained when the characteristics of a property conform to
    the demand of it's market.
    A. Principle of conformity
    B. Principle of balance
    C. Principle of anticipation
    D. Principle of contribution
    A. Principle of conformity
    (this multiple choice question has been scrambled)
  79. The theory which states that the excess lot utility of a property results in a lower value.
    A. Diminished value of excess
    B. Regression
    C. Surplus productivity
    D. Decline
    A. Diminished value of excess
    (this multiple choice question has been scrambled)
  80. The principle that indicates that factors outside the property can have a positive or negative effect on the subject property.
    A. Principle of externalities
    B. Principle of balance
    C. Principle of conformity
    D. Principle of contribution
    A. Principle of externalities
    (this multiple choice question has been scrambled)
  81. A part of the principle of externalities, which suggests that a much larger or over-improved property compared to the homes in the same area would result in a lower value.
    A. steering
    B. absorption
    C. regression
    D. progression
    C. regression
    (this multiple choice question has been scrambled)
  82. A part of the principle of externalities, which states that a home that is smaller or of lower quality than the other homes in a given area would have an increased value.
    A. regression
    B. absorption
    C. steering
    D. progression
    D. progression
    (this multiple choice question has been scrambled)
  83. The principle that state the value of an individual component is measured with regard to its contribution to the whole value.
    Principle of contrubution
  84. The net income to the land that remains after the costs of the other agents of production have been paid. (A way to measure the value of an improved land)
    A. surplus productivity
    B. absorption
    C. superadequacy
    D. steering
    A. surplus productivity
    (this multiple choice question has been scrambled)
  85. The total amount of a given type of property for sale or lease, or various prices, at any given point in time.
    Supply
  86. According to the DEFINITIONS of USPAP, what is the monetary relationship between properties and those who buy, sell, or use those properties?
    A. Effective demand
    B. Scarcity
    C. Value
    D. Transferability
    C. Value
    (this multiple choice question has been scrambled)
  87. The most common type of appraisal is primarily aimed at estimating.
    A. investment value
    B. market value
    C. corner value
    D. salvage value
    B. market value
    (this multiple choice question has been scrambled)
  88. Which is the following is not an element of value?
    A. Scarcity
    B. Utility
    C. Demand
    D. Scalability
    D. Scalability
    (this multiple choice question has been scrambled)
  89. The Smith Family is eager to purchased a new home in a rapidly developing community. They have been pre-qualified for a loan that demonstrates their ability to purchase. This is an example of:
    A. scarcity
    B. demand
    C. effective demand
    D. functional utility
    C. effective demand
    (this multiple choice question has been scrambled)
  90. The four factors that influence real property values include:
    a. environmental factors
    b. economic factors
    c. governmental controls
    d. all of the above
    d. all of the above
  91. Land, topography, and soil are examples of which type of factor that influence real property values?
    A. Social
    B. Economic
    C. Governmental
    D. Environmental
    D. Environmental
    (this multiple choice question has been scrambled)
  92. A buyer is looking at two homes located on the same block, which have similar qualities, conditions, and amenities. The buyer decides to purchase the home that is priced $21,000 lower. This is an example of the principal of:
    A. substitution
    B. conformity
    C. change
    D. anticipation
    A. substitution
    (this multiple choice question has been scrambled)
  93. According to the principle of ______, if a recent manufacturing company that supplied many jobs to a nearby neighborhood went out of business, there would be negative and positive impacts to consider when developing market value.
    A. substitution
    B. decline
    C. change
    D. regression
    C. change
    (this multiple choice question has been scrambled)
  94. In a neighborhood life cycle, what occurs after growth and development?
    A. Equilibrium
    B. Decline
    C. Gentrification
    D. Revitalization
    A. Equilibrium
    (this multiple choice question has been scrambled)
  95. Local zoning regulations help enforce the principle of:
    A. anticipation
    B. substitution
    C. conformity
    D. diminished value of excess theory.
    C. conformity
    (this multiple choice question has been scrambled)
  96. The principle of _____ is used to describe the effect on value when a property does not conform to the level of the surrounding properties.
    A. regression
    B. contribution
    C. progression
    D. both progression and regression
    D. both progression and regression
    (this multiple choice question has been scrambled)
  97. A parcel of land has 10 acres with local zoning laws that prohibit subdividing farming, or ranching. The owner of the land decides to build a house on the parcel, which decreases the lot utility. This is due to the:
    A. principle of change.
    B. principle of anticipation.
    C. principle of substitution.
    D. diminished value of excess theory.
    D. diminished value of excess theory.
    (this multiple choice question has been scrambled)
  98. _____ measures the value of land with an improvement and is obtained by determining the net income of the land after the costs for the other agents of production.
    A. Principle of anticipation
    B. Supply and demand
    C. Surplus productivity
    D. Principle of conformity
    C. Surplus productivity
    (this multiple choice question has been scrambled)
  99. An item will become more valuable if there is a shortage of that particular item combined with:
    A. demand
    B. conformity
    C. transferability
    D. contribution
    A. demand
    (this multiple choice question has been scrambled)
  100. The basic component of supply and demand is:
    A. contribution
    B. conformity
    C. competition
    D. transferability
    C. competition
    (this multiple choice question has been scrambled)

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