18 Questions
What is the primary focus of a Valuer when assessing a property's value?
The property's value as part of a group or portfolio
In financial reporting, what does Fair Value represent?
The amount for which an asset could be exchanged in an arm's length transaction
What is typically reported separately from Market Value when assessing a property?
Special value above the property's standalone value
How does a Valuer differentiate between Market Value and Fair Value?
By looking at the property as part of a group or portfolio
When estimating and reporting the value of a property, what is typically considered by a Valuer?
The property as part of an aggregate or portfolio
What is typically included in Fair Value as per International Financial Reporting Standards?
The amount an asset could be exchanged for in an arm's length transaction
Which of the following is NOT a requirement for Valuers?
Demonstrated skills in real estate development
What is a key effect of general forces on real estate price levels?
Increase in property value
Which principle directly affects the degree of utility and productivity of a property?
Supply and demand principle
What is the definition of real estate according to the text?
Physical land and attached human-made items
How does the utility of real estate reflect market forces?
Reflects the combined influence of market forces
What are some key requirements for Valuers' professional practice?
Adherence to Generally Accepted Valuation Principles, Code of Conduct, and maintaining standards
What is the objective of the procedures employed in the valuation process?
To define and quantify the degree of utility or usefulness of the property valued
How is utility commonly defined in property valuation?
As a relative term
What primarily determines the utility and value of agricultural land?
The quantity and quality of produce or buildings it yields
How is land value established in property valuation?
By evaluating its utility in terms of multiple factors including legal, physical, functional, economic, and environmental aspects
When is optimum utility achieved for some properties?
When they are operated individually
In what way is property valuation fundamentally governed?
By how specific property is used and/or how it would ordinarily be traded in the market
Learn about the procedures involved in the property valuation process and how utility is quantified in this context. Understand how utility is a relative term based on the productive capacity of the property, such as agricultural land.
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