An appraisal is a conclusive statement of value based on the seller's desired selling price.
false
The information used to perform an appraisal is divided into two basic classes: general data and specific data.
true
Maximum value is created when a property is in harmony with its surroundings under the principle of conformity.
true
According to the principle of change, value is created by the expectation that certain events will occur.
false
An appraiser using the cost approach method estimates the current cost of constructing buildings and improvements on the land.
true
The sales comparison approach is also called the market data approach.
true
An appraisal is
an opinion of value based on supportable evidence and approved methods.
At the risk of seeming boring or monotonous, properties will still be at their highest value if the neighborhood exhibits
conformity.
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
What is the key to an accurate appraisal?
Methodical collection and analysis of data
The work of an appraiser should comply with
the Uniform Standards of Professional Appraisal Practice.
If a property's annual net income is $24,000 and it is valued at $300,000, what is its capitalization rate?
8%
The appraised value of a residence with four bedrooms and one bathroom would probably be reduced because of
functional obsolescence.
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
Which of the following is NOT used by an appraiser applying the income approach to value?
Accrued depreciation
The market value of a parcel of real estate is
an estimate of the most probable price it should bring.
Appraisals are required for
FHA and all federally related loans.
A sales associate or appraiser trying to estimate the market value of a property would be seeking
the probable price the property will bring
A developer buys the last five vacant lots in a subdivision and constructs a large, expensive home on each lot. The homes sell for what are record-setting high prices for the area. The owners of the older, lesser-valued houses in the neighborhood may find that the values of their homes are affected by what principle?
Progression
Which body established the Uniform Standards of Professional Appraisal Practice (USPAP)?
The Appraisal Standards Board
An appraiser is responsible for
forming an opinion of value.
The amount of money a property is likely to command in the marketplace is its
market value.
Which of the following BEST describes a capitalization rate?
Rate of return an income property will produce
All of the following are characteristics that contribute to value EXCEPT
obsolescence.
A homeowner constructs a five-bedroom brick house with an indoor pool in a neighborhood of modest two-bedroom and three-bedroom frame houses on narrow lots. The value of this house is MOST likely to be affected by what principle?
regression
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
Once the appraiser has considered the three methods of valuation of real estate, the final step in the appraisal process is
reconciliation.
Which approach to value is the MOST reliable for appraising a single-family home?
Sales comparison approach