Term
| When calculating Gross Rent Multipliers you should use? |
|
Definition
|
|
Term
| When calculating Gross Income Multipliers you should use? |
|
Definition
|
|
Term
| Maximum ownership in real estate is called? |
|
Definition
Fee
Fee Simple
Fee Simple Absolute |
|
|
Term
|
Definition
| The amount of rent specified in a lease-it is also called schedule rent. |
|
|
Term
| What is Constructive Notice? |
|
Definition
| A legal doctrine that requires a potential purchaser to take notice of available evidence that someone other than the owner may have an interest in the property. |
|
|
Term
| What is a non-conforming use? |
|
Definition
| A property use that pre-dates current zoning. |
|
|
Term
| The cost approach tends to ________ in reliablity in the appraisal of older improvements and why? |
|
Definition
Decrease
Because of the difficulty in accurately estimating accrued depreciation. |
|
|
Term
|
Definition
| Owner's interest in a rented property |
|
|
Term
|
Definition
| The tenant's interest in rental property. |
|
|
Term
| What is the criteria for highest and best use? |
|
Definition
Physically possible
Legal
Economically feasible
Maximum productivity |
|
|
Term
| Can highest and best use change over time? |
|
Definition
|
|
Term
| What is an Sandwhich Lease? |
|
Definition
| If a tenant sub-leases the property to another tentant, the orginal tentant holds the sandwhich lease. |
|
|
Term
| What is an Amortized Loan? |
|
Definition
| A loan that involves a periodic repayment of the debt in addition to the interest on the loan. |
|
|
Term
| What are the steps in the appraisal process? |
|
Definition
Define the problem
Form a plan
Collect and analyze data
Apply approach to value
Arrive at conclusion
Report conclusion |
|
|
Term
| Define and recognize examples of Physical Depreciation. |
|
Definition
Wear and Tear from:
Age
Weather
Lack of manintence
Vandalism |
|
|
Term
| Define and be able to recognize examples of Economic Obsolence. |
|
Definition
Loss in value that is caused by factors located outside the subject property.
Economic hazards
Changes in zoning
Inharmonious nearby land use
Dust and Freeway or airport
Landfill |
|
|
Term
| Define and be able to recognize examples of Functional Obsolescenses. |
|
Definition
Loss in function or use of utility
Faulty building design
Outmoded equipment
Defect in structure
Poor floor plan
Housing lacking side yard |
|
|
Term
| What is the amount of mortgage loan or loan to value based upon? |
|
Definition
| Purchase price or market value whichever is less. |
|
|
Term
|
Definition
| When one property extends or trespasses onto another property. |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| how things hook together in a neighborhood |
|
|
Term
|
Definition
| Combining together under one ownership of two or more parcels of property. |
|
|
Term
|
Definition
| Ifthe combined property, assemblage, is greater than the sum of the values of the individual properties. |
|
|
Term
| What do you do if comparables are superior? |
|
Definition
|
|
Term
| What do you do if comparables are inferior? |
|
Definition
|
|
Term
| What affects supply of real estate? |
|
Definition
Volume of new construction
Land use
City growth
Standing stock |
|
|
Term
| What are some economic princples that affect value? |
|
Definition
supply and demand
progression and regression
subsitution
contribution |
|
|
Term
|
Definition
Cost-best for new
you can also use this approach when sales (no sales) income (no income) appraoches can't be used
Seperate site is unique to this
Based on principle of SUBSITUTION
Sales-most direct
used when there is market activity
adjust on contributory value
Income investment
Based on principle of ANTICIPATION
V=I/R |
|
|
Term
| The report according to USPAP is |
|
Definition
| any written or oral communication of an appraisal, review, or consulting service |
|
|
Term
| What is the Effective Date? |
|
Definition
Last date of the inspection for a current appraisal or any other date required by client
Effective date is specified in the report |
|
|
Term
|
Definition
V=I/R
Value =Interst divided by Rate |
|
|
Term
| Classification of Physical Depreciation and Functional Depreciation. |
|
Definition
Curable:if economically feasible (not physically)
Incurable:
long lived components that are anticipated to last-framing
short lived components that won't last life (roof, plumbing..) |
|
|
Term
| Private Involuntary Limitations |
|
Definition
Encroachments
Adverse Possession
Mechanic's Lein |
|
|
Term
| Final reconciliation is performed |
|
Definition
| after the application to the 3 appraoaches of value |
|
|
Term
|
Definition
| Process of estmating the value or report containing that estimate |
|
|
Term
|
Definition
| Value to the typical appraiser |
|
|
Term
|
Definition
Establish market value as if land is vacant
Total cost to build the existing structure figured at construction prices effect date of value
Subtract depreciation
Add value of land to depreciated replacemnt cost |
|
|
Term
| Demand for housing varies directly with? |
|
Definition
|
|
Term
| Assessed Value is primarily used for |
|
Definition
|
|
Term
| Market Value is closely associated with |
|
Definition
|
|
Term
| What is the most important consideration in the collection and analyzes of data? |
|
Definition
| Data should have relevance to the estimate of the subject's value |
|
|
Term
|
Definition
Well informed buyers and sellers
Typical finacing
Typical motivate seller |
|
|
Term
| In estimating accrued depreciation the appraiser must know? |
|
Definition
|
|
Term
| Time adjustment to a comparable is made to adjust for |
|
Definition
| Market changes between the contract date of the comparables and the effective date of the report |
|
|
Term
| Which approach is most detailed and which report is most detailed? |
|
Definition
| Cost approach and Self Contained Report |
|
|
Term
| Give examples of Public Limitations |
|
Definition
Subdivision regualtions
Zoning
Construction codes |
|
|
Term
| What is a distorted sale? |
|
Definition
| Sale of a house from one family member to another |
|
|
Term
| Adjustable rate mortgages change according to what? |
|
Definition
|
|
Term
|
Definition
Zoning
Subdivision Regulations
Building cost |
|
|
Term
| Why are Discount Points are charged by lenders? |
|
Definition
| To offset fluctuations in the interest rates in capital markets |
|
|
Term
| Market Value and the selling price are sometimes |
|
Definition
|
|
Term
|
Definition
|
|
Term
| Metes and Bounds is what? |
|
Definition
| Legal description and there must be a point of beginning |
|
|
Term
| The Effective Date of an appraisal may be |
|
Definition
Current date
Prospective Age (future date)
Retrospective date (past date) |
|
|
Term
| Acomparable sale, which sold with a loan assumption and under conditions mmore favorable would require? |
|
Definition
| cash equivalency adjustments be made |
|
|
Term
| Adjustable rate mortgages change when? |
|
Definition
| According some index of interest |
|
|
Term
|
Definition
Narrative
Form
Restricted use-letter |
|
|
Term
4 methods to establish cost
from least to most |
|
Definition
Index
Coparative
Unit
Quanitive |
|
|
Term
| 3 types accrued depreciation and 4 methods for accrued depreciation |
|
Definition
physcial, economic,functional
straight line-loss related to life expectancy
sales data or market method-measured from market
cost to cure-loss necessary to restore
capitalized income or rental loss-
loss in income |
|
|
Term
| The sales comparison approach is based on what principle? |
|
Definition
|
|
Term
| What are the steps to sales comparison approach? |
|
Definition
1).i.d. ways sales differ in feature
2) compare differences in price
3) adjust for difference
4)est value |
|
|
Term
|
Definition
| date that sale was agreed upon |
|
|
Term
| The sales comparsion approach is |
|
Definition
most direct
easiest
based on subsitution |
|
|
Term
| To qualify as a comparable a sale must |
|
Definition
be competitive
open market transaction
recent time of sale |
|
|
Term
| USPAP requires prior subject be considered when |
|
Definition
| within 3 years for all property |
|
|
Term
| When you find a comp with below market price and find it was sold under special conditions you disgaurd because? |
|
Definition
| not open market transaction |
|
|
Term
| Number of comparable sales is dependent on |
|
Definition
how good the comparables are
reliablity of data
intended use |
|
|
Term
| Required data of a comparable should include |
|
Definition
sales transaction data
physical characteristics
legal characteristics |
|
|
Term
|
Definition
|
|
Term
| 4 elements of sales comparison approach |
|
Definition
terms
time
location
physical |
|
|
Term
| Direct comaparison is used in |
|
Definition
|
|
Term
| In adjusting the sale the appraiser should adjust |
|
Definition
|
|
Term
| What is the most reliable method for estimating sales adjustment? |
|
Definition
| direct market or "matched pairs" |
|
|
Term
| What is linear regression? |
|
Definition
| technique to analyze relationship between price and single characteristic |
|
|
Term
| Name 3 units of comparisons |
|
Definition
price per SF
price per unit
GRM |
|
|
Term
| Land residual method is based on what principle? |
|
Definition
|
|
Term
| What is the most valid unit of comparison for vacant land? |
|
Definition
| considered imp. by market |
|
|
Term
|
Definition
labor
materials
design cost |
|
|
Term
|
Definition
| cost of a building that will serve the same purposes |
|
|
Term
| Which method is most used? |
|
Definition
|
|
Term
| When basic cost calculation is adjusted to relect extra features which method is used? |
|
Definition
|
|
Term
| Estimating cost by detailed brakedown of labor, materials and indirect cost-use what method? |
|
Definition
|
|
Term
| What is accrued depreciation? |
|
Definition
| total loss in value from all causes |
|
|
Term
| Misplaced improvement suffers from? |
|
Definition
|
|
Term
| Economic or external obsolescene is found to be? |
|
Definition
|
|
Term
| Which value loss is inside property? |
|
Definition
|
|
Term
| An over improvement suffers from? |
|
Definition
|
|
Term
| The cost to cure method is also called? |
|
Definition
|
|
Term
| What is Effective Gross Rent? |
|
Definition
| Income remaining after vacancy and credit losses are deducted from gross rent |
|
|
Term
| When the GRM is lower what happens? |
|
Definition
| the higher the return on the investment |
|
|
Term
|
Definition
| tenant pays minimum rent or % of gross sales which ever is larger |
|
|
Term
|
Definition
|
|
Term
| What is the most reliable technique in income capitalzation? |
|
Definition
|
|
Term
| What does income capitalization do? |
|
Definition
| converts income into curent value equivalent |
|
|
Term
|
Definition
equity in a propery that is earning a greater return than the cost of money
ability to trade on equity |
|
|
Term
| Interest rate is also called? |
|
Definition
|
|
Term
| What is the difference between return on and return of investment? |
|
Definition
return on is like interest
return of is allowing investment funds to be recovered |
|
|
Term
| What are the principes that relate to capitalization? |
|
Definition
anticipation-
agents of production-
contributory value-
highest and best use |
|
|
Term
| What is the balance principle? |
|
Definition
| max value is to result from cost invested |
|
|
Term
| What is the principle of contribution? |
|
Definition
| How much it contributes to the value of the whole |
|
|
Term
| What is the principle of anticipation? |
|
Definition
| present value of future benefits |
|
|
Term
|
Definition
| boundary line or lot side that faces street |
|
|
Term
|
Definition
Demand
Utility
Scarsity
Transferability |
|
|
Term
| Is there reversion in fee simple? |
|
Definition
|
|
Term
| Do you adverage the 3 approaches? |
|
Definition
|
|
Term
| What is the difference between Gross and Net lease? |
|
Definition
Gross-landlord pays everything
Net-tenant pays part |
|
|
Term
| When is there a reversion of property? |
|
Definition
lease
life estate
altered deed |
|
|
Term
|
Definition
| legal rights that attach to ownership |
|
|
Term
|
Definition
| government ownership to a private citizen |
|
|
Term
| Types of use restrictions |
|
Definition
|
|
Term
|
Definition
development-vacant subdivided
stable-development slow down maintance to keep up with deterioration
decline-age, insect,pollution
renaissance-new building or rennovate |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| permission to use land outside of grandfathering |
|
|
Term
| For township to grow it must? |
|
Definition
|
|
Term
|
Definition
management-no undisclosed fees or contingent
record keeping 5/2 year
confidentiality-client, law enforcement, review board
conduct-not impartial |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
| Each 6 mile township is further subdivided into 36 parcels each being? |
|
Definition
|
|
Term
|
Definition
| person who transfers property by deed(seller) |
|
|
Term
|
Definition
|
|
Term
| Real estate demand adjust |
|
Definition
|
|
Term
| Highest level of reliablity is found in what type appraisal? |
|
Definition
|
|
Term
|
Definition
| invoke using limited appraisal |
|
|
Term
|
Definition
| amt mortgage company will lend |
|
|
Term
|
Definition
| rate at which a type of real estate will be sold or occupied |
|
|
Term
|
Definition
| voluntary transfer of title |
|
|
Term
|
Definition
Manner of annex
Adaptation
Relationship of parties
Intention
Aggreement |
|
|
Term
|
Definition
| person who engages appraisal process |
|
|
Term
|
Definition
|
|
Term
|
Definition
adverse possession
prescriptive easement
deed restrictions |
|
|
Term
| appurtenant easement involves? |
|
Definition
dominant estate-benefitted
servient estate-burden |
|
|
Term
| Effective demand is tied to? |
|
Definition
| Purchasing power of consumer |
|
|
Term
|
Definition
| agent who list a property based on owner's own life or lifetime of another |
|
|
Term
| standard form is likely to be used for |
|
Definition
|
|
Term
| Georgia assesses taxes on |
|
Definition
|
|
