Real Estate Final Exam Study Quiz

<p>The Conduct section (B)</p> Signup and view all the answers

<p>Value = Income ÷ Rate of Return (B)</p> Signup and view all the answers

<p>Similar improvements (D)</p> Signup and view all the answers

<p>Functional obsolescence because of a deficiency (D)</p> Signup and view all the answers

<p>Availability of garage space (A)</p> Signup and view all the answers

<p>Working zone (C)</p> Signup and view all the answers

<p>Sales or financing concessions (A)</p> Signup and view all the answers

<p>Transaction must be all cash (A)</p> Signup and view all the answers

<p>Disclaimers of liability (B)</p> Signup and view all the answers

<p>Single-family residence valued at $300,000 (A)</p> Signup and view all the answers

<p>External obsolescence (A)</p> Signup and view all the answers

<p>Tax assessments (C)</p> Signup and view all the answers

<p>Functional obsolescence (D)</p> Signup and view all the answers

<p>When the vacant land value is greater than the improved property value plus demolition cost (B)</p> Signup and view all the answers

<p>The market conditions at the time of appraisal (D)</p> Signup and view all the answers

<p>The value of the leasehold has dropped while the leased fee has risen (A)</p> Signup and view all the answers

<p>$422,000 (D)</p> Signup and view all the answers

<p>Principle of substitution (A)</p> Signup and view all the answers

<p>Joist (D)</p> Signup and view all the answers

<p>Reduced structural integrity (B)</p> Signup and view all the answers

<p>The property is viewed less favorably due to lower cash flow (C)</p> Signup and view all the answers

<p>incurable physical deterioration (D)</p> Signup and view all the answers

<p>A transaction valued at $60,000 (C)</p> Signup and view all the answers

<p>actual (D)</p> Signup and view all the answers

<p>1 year (D)</p> Signup and view all the answers

<p>residential subdivisions (D)</p> Signup and view all the answers

<p>$1,392.40 (B)</p> Signup and view all the answers

<p>comparative unit method (C)</p> Signup and view all the answers

<p>frontage (B)</p> Signup and view all the answers

<p>Opinion of value (D)</p> Signup and view all the answers

<p>Subtract the value of the garage from the comparable's price (A)</p> Signup and view all the answers

<p>All of the above (D)</p> Signup and view all the answers

<p>General data (B)</p> Signup and view all the answers

<p>$6,666,666 (D)</p> Signup and view all the answers

<p>Pier and beam foundation (A)</p> Signup and view all the answers

<p>$140,000 (C)</p> Signup and view all the answers

<p>Determining construction costs (A)</p> Signup and view all the answers

<p>Horizontal subdivision (B)</p> Signup and view all the answers

<p>10 comparables (A)</p> Signup and view all the answers

<p>Recapture (A)</p> Signup and view all the answers

<p>Property value = Cost of improvements - Depreciation of improvements + Land value (C)</p> Signup and view all the answers

<p>Employs a grid system for land parcels (A)</p> Signup and view all the answers

<p>Working zone (B)</p> Signup and view all the answers

<p>Transaction must always be all cash (C)</p> Signup and view all the answers

<p>Disclaimers of liability (A)</p> Signup and view all the answers

<p>Appraisal of a single-family residence valued at $300,000 (A)</p> Signup and view all the answers

<p>Comparing recent sales of similar properties (C)</p> Signup and view all the answers

Resources (factors) used to create goods or services.

A legal claim or charge against property.

Independent appraiser working for clients on a fee basis.

Accepting an assignment with a predetermined opinion.

Value = Income / Rate of Return

Valuing land by comparing similar properties.

Loss of value due to outdated or inadequate features.

The surplus remaining that is not needed or consumed in production

A loss in value due to a feature being excessively superior to the market's needs.

A loss in value from factors outside the property itself (e.g., zoning changes, environmental hazards).

The kitchen is typically part of the working zone.

Data on the sales comparison grid, for comparables only, exclude details about the subject property and include specifics unique to comparables, such as sales concessions.

A reliable sale price reflects information symmetry between buyer and seller, reasonable market exposure, absence of undue pressure, and typical financing.

Statements in appraisal reports that aim to limit the interpretation of the appraisal's findings, minimizing misunderstanding and limiting liability for the appraiser.

A state-licensed (not certified) appraiser can perform appraisals for federally related transactions under certain circumstances, concerning specific property values, not encompassing extremely expensive subjects.

Precise and accurate documentation of property location, essential for legal transactions and establishing ownership boundaries, avoiding ambiguity.

A method used in appraising properties to determine their value by evaluating similar properties in the market.

A method used to determine the cost of repairing or correcting flaws or problems in a property.

A method that breaks down a property's value into components (e.g., land, improvements), to evaluate the entire property.

A valuation method based on the economic lifespan of a property's improvements.

Vacant land value is lower than the total value of an existing building.

A principle in appraisal stating that the maximum value of a property is set by a property of equal utility.

A horizontal structural member used to support load in floor or ceilings.

The value of the tenant's right in a property under a lease.

The distance from the front to the back of a property.

The added value created when combining two or more smaller parcels of land into a larger one.

The direction a building faces, often in relation to the sun.

The length of a property that borders a street or other access route.

An opinion or estimate of the value of a property.

Estimating a property�s value by comparing it to similar recently sold properties.

A lease where the tenant pays all property expenses, including property taxes, insurance, and maintenance.

Broad information about the economy, demographics, and market trends in a region.

A system of land ownership where individuals hold absolute title to their property, free from feudal obligations.

A method of describing property boundaries using compass directions, distances, and reference points.

A system dividing land into rectangular grids using townships, ranges, and sections.

A system describing property by referencing its lot number within a recorded subdivision or plat.

Dividing a multi-story building into separate ownership units, typically condominiums.

When the cost to repair damage to a property is greater than the increase in value after repairs. It's a permanent, often significant decline in value due to wear and tear.

Any real estate transaction involving a loan from a federally insured bank, Fannie Mae, or a savings and loan borrowing from the Federal Reserve. These transactions are subject to federal regulations and disclosure requirements.

A property's age as determined by its condition and remaining useful life, not its actual age.

A rule of thumb suggesting it's best to use comparable sales no older than 6 months to ensure market conditions haven't changed significantly.

A legal description for properties in subdivisions where each lot is assigned a unique number within a specific block.

Interest earned not only on the initial investment but also on previously earned interest. This effect leads to faster growth over time.

A simple cost estimation method for construction that compares similar projects and adjusts unit costs based on differences.

A loss of value because a property's features are too good for the market, exceeding typical needs.

Estimates a property's value by analyzing its potential income.