Real Estate Appraisal Flashcards

Questions and Answers

Which of the following best defines appraising?

The act of selling a property

The process of landscaping a property

The process of developing an opinion of the value of real property (correct)

The evaluation of property maintenance

On what is an appraisal fee based?

The time, effort, and expense involved in conducting the appraisal.

Which type of valuation must be performed in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP)?

Appraisals used in a federally-related transaction.

All of the following statements are correct regarding mortgage loan originators except:

They make loans for real estate purchases. Signup and view all the answers

Which statement about insurance is accurate?

To sell insurance, a person must have a separate insurance license. Signup and view all the answers

A home that is built by a contractor before a buyer for the home has been secured is an example of what?

Speculative building. Signup and view all the answers

A home that is built by a contractor according to the buyer's specifications is an example of what?

Custom building. Signup and view all the answers

The ownership of streets and sidewalks is typically conveyed by a developer to the city or county upon completion of a subdivision. What is this called?

Dedication. Signup and view all the answers

What is the nation's largest trade and professional association in the field of real estate?

The National Association of Realtors (NAR). Signup and view all the answers

What is a REALTOR?

A member of the National Association of Realtors. Signup and view all the answers

Which action can a real estate licensee take to gain access to the MLS and become a member of both FAR and the NAR?

Joining a local association. Signup and view all the answers

All of the following are local government roles that affect the real estate industry except:

Licensure of real estate professionals. Signup and view all the answers

All of the following are state-level government factors that impact the real estate industry, except:

Water utilities. Signup and view all the answers

Monetary policy and legislation that affects lending institutions are examples of government influence on the real estate industry at what level?

Federal level. Signup and view all the answers

Which of the following statements is true regarding a mortgage loan originator (MLO)?

MLO must have a separate license. Signup and view all the answers

A real estate appraiser's fee for professional service is based on which of the following?

The time and difficulty of the appraisal. Signup and view all the answers

Which of the following best describes the real estate brokerage business?

Service business. Signup and view all the answers

When a developer completes construction of a new subdivision, all streets, electric, water and sewer installation are finished and deeded to the city or county. What is this process called?

Dedication. Signup and view all the answers

All of the following are responsibilities of a property manager except:

Preparing leases. Signup and view all the answers

What does the term 'farming' refer to in real estate?

Specializing in one geographic area. Signup and view all the answers

Which insurance policies can a real estate licensee offer to the public without additional state licensing?

None of the above. Signup and view all the answers

What is the purpose of the National Association of Realtors (NAR)?

Preserve the right of individuals to own real property through an exchange of information. Signup and view all the answers

What does the designation of REALTOR signify?

Identifies a real estate professional as a member of the NAR. Signup and view all the answers

A developer contracts to build a home according to the buyer's specifications. This is an example of which type of building?

Custom. Signup and view all the answers

The federal, state, and local governments all play a role in the regulation of real estate. In which of the following areas would the local government have the most impact?

Property taxes. Signup and view all the answers

Which of the following best describes licensees who are involved in business brokerage?

They must be able to analyze financial statements and understand balance sheets. Signup and view all the answers

Real estate licensees are required to be knowledgeable in all of the following areas except:

Accounting. Signup and view all the answers

Which service provided by real estate licensees requires the most experience and knowledge?

Counseling. Signup and view all the answers

An appraiser who is registered, licensed, or certified under F.S. 475, Part II, must be utilized in which of the following?

All appraisals. Signup and view all the answers

What does the term 'farm area' refer to in real estate?

A specific geographic area or type of property that is a licensee's specialization. Signup and view all the answers

Which of the following assignments would be acceptable for a Florida real estate licensee who does not represent themselves as an appraiser and follows the Uniform Standards of Professional Appraisal Practice (USPAP)?

An assignment to give an estimate of value for an attorney in a divorce case. Signup and view all the answers

A developer acquires a large area of land where they build and market several model homes in a new neighborhood. This is an example of which type of building?

Tract. Signup and view all the answers

Study Notes

Appraising and Fees

Appraising involves forming an opinion on real property value.
Appraisal fees consider the time, effort, and costs of the appraisal process.

Compliance with USPAP

Federal appraisals must comply with the Uniform Standards of Professional Appraisal Practice (USPAP).
Appraisers must be registered, licensed, or certified under Florida's F.S. 475, administered by the Real Estate Appraisal Board.

Mortgage Loan Originators

Mortgage loan originators do not provide loans directly but facilitate connections between lenders and borrowers.
MLOs require a separate license for operation.

Insurance Licensing

Selling insurance necessitates a specific insurance license.

Types of Construction

Speculative building refers to homes constructed by a contractor without a secured buyer.
Custom building is tailored to a buyer's specifications, enhancing personalization.

Ownership and Dedication

Developers typically transfer ownership of streets and sidewalks to governmental bodies upon subdivision completion, a process known as dedication.

Real Estate Associations

The National Association of Realtors (NAR) is the largest trade organization in real estate.
A REALTOR signifies membership in the NAR, emphasizing ethical and professional standards.

Local and State Government Roles

Local governments influence real estate through property taxes, building moratoriums, and zoning.
State factors include Developments of Regional Impact (DRI), the Department of Environmental Protection (DEP), and considerations affecting multidistrict impacts.

Market Influence

Federal legislation and monetary policy greatly influence lending practices, affecting real estate transactions.

Property Management and Responsibilities

Responsibilities of property managers exclude lease preparation, highlighting varying roles within the real estate sector.

Farming in Real Estate

"Farming" denotes specializing in a specific geographic area, amplifying market expertise.

Counseling and Knowledge Requirements

Counseling requires extensive experience and knowledge among real estate licensees.
Licensees need not be proficient in accounting to perform their duties.

Specialist Roles and Property Valuation

Real estate professionals should be knowledgeable across various areas except for accounting.
Appraisers must be utilized for all valuation-related tasks in real estate transactions.

Farm Areas and Business Brokerage

"Farm area" refers to a specific geographic focus or property specialization.
Business brokerage licensees must interpret financial statements and balance sheets competently.

Acceptable Assignments for Licensees

Florida licensees not presenting as appraisers can provide value estimates for legal purposes, adhering to USPAP standards.

Tract Development

Tract building denotes developers creating multiple homes in new neighborhoods for commercial sale.

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Description

Test your knowledge of key terms and definitions related to real estate appraisal with these flashcards. Each card covers fundamental concepts such as appraising and appraisal fees, crucial for anyone studying or working in the field of property valuation.