Podcast
Questions and Answers
What is the most probable selling price of a property under 'normal' sale conditions?
What is the most probable selling price of a property under 'normal' sale conditions?
- Eminent domain price
- Transaction price
- Market value (correct)
- Investment value
Who uses market value appraisals according to the text?
Who uses market value appraisals according to the text?
- Government agencies (correct)
- Insurance companies
- Investment bankers
- Real estate developers
In markets with perfect competition and investment value revelation, where do all transactions take place?
In markets with perfect competition and investment value revelation, where do all transactions take place?
- Below the true market value
- At true market value (correct)
- At the fundamental value
- At the investment value
What is the value to a particular individual or investor referred to as?
What is the value to a particular individual or investor referred to as?
When is valuation calculation required according to the text?
When is valuation calculation required according to the text?
What is the purpose of USPAP?
What is the purpose of USPAP?
Why is it important to value land separately from improvements?
Why is it important to value land separately from improvements?
What is the first step in the process of complying with USPAP?
What is the first step in the process of complying with USPAP?
What is the key consideration in determining the 'highest and best use' of a property?
What is the key consideration in determining the 'highest and best use' of a property?
Why is reconciling values from multiple approaches important in real estate appraisal?
Why is reconciling values from multiple approaches important in real estate appraisal?
What is the primary reason for using the income approach to valuation?
What is the primary reason for using the income approach to valuation?
What measure of income is generally sought by property valuers for income valuation?
What measure of income is generally sought by property valuers for income valuation?
What is the next step after estimating the net income in the income approach?
What is the next step after estimating the net income in the income approach?
What additional factor needs to be considered in income valuation if the owner has borrowed funds to the mortgage lenders?
What additional factor needs to be considered in income valuation if the owner has borrowed funds to the mortgage lenders?
Why is it important to consider income taxes in income valuation?
Why is it important to consider income taxes in income valuation?
What is the main similarity between direct capitalization and valuing a stock using a price/earnings multiple?
What is the main similarity between direct capitalization and valuing a stock using a price/earnings multiple?
In DCF valuation models, what does the appraiser need to estimate?
In DCF valuation models, what does the appraiser need to estimate?
What does potential gross income (PGI) represent?
What does potential gross income (PGI) represent?
Why might the estimation of potential gross income include contract rent of long-term leases?
Why might the estimation of potential gross income include contract rent of long-term leases?
What is market rent in the context of potential gross income estimation?
What is market rent in the context of potential gross income estimation?
