Podcast Beta
Questions and Answers
What is the Gross Rent Multiplier (GRM) calculated by?
Which step in the Comparative Market Analysis involves identifying comparables?
Under FIRREA, who is permitted to perform federally-related appraisals as of January 1, 1993?
What is Market Value?
Signup and view all the answers
What is the primary reason why investors won't pay more for a property with a certain income stream according to the text?
Signup and view all the answers
What does Salvage Value refer to?
Signup and view all the answers
In the Income Approach to property valuation, what does NOI stand for?
Signup and view all the answers
How is Reproduction Value calculated?
Signup and view all the answers
What is the purpose of applying a capitalization rate in the Income Approach to valuation?
Signup and view all the answers
What is Assessed Value used for?
Signup and view all the answers
What is the main requirement for all appraisals used in federally-related transactions according to FIRREA?
Signup and view all the answers
How is Depreciated Value determined?
Signup and view all the answers
What does Investment Value represent?
Signup and view all the answers
What is Book Value based on?
Signup and view all the answers
What does Progression and Regression refer to?
Signup and view all the answers
What is Replacement Value based on?
Signup and view all the answers
What is market value?
Signup and view all the answers
What defines Gross Living Area (GLA)?
Signup and view all the answers
What is an essential requirement for a space to be included in GLA footage?
Signup and view all the answers
What is the purpose of adjusting comparables in property appraisal?
Signup and view all the answers
Which type of cost appraisal involves creating an exact replica of the property?
Signup and view all the answers
What is an element of depreciation related to outmoded physical or design features?
Signup and view all the answers
What distinguishes between curable and incurable functional obsolescence?
Signup and view all the answers
What should be excluded when selecting comparables for appraisal adjustments?
Signup and view all the answers
What should you consider when adjusting comparables weightings?
Signup and view all the answers
According to market value requirements, what does 'arm's length transaction' mean?
Signup and view all the answers
What is an important condition for the market value of a property?
Signup and view all the answers
What does Gross Living Area (GLA) include?
Signup and view all the answers
What should be excluded from GLA measurements?
Signup and view all the answers
How is 'Depreciated Improvement Cost' calculated?
Signup and view all the answers
What distinguishes between curable and incurable functional obsolescence?
Signup and view all the answers
Which type of spaces can generally count towards Gross Living Area calculations?
Signup and view all the answers
'Subtract if Superior!' guideline is related to adjusting comparables in terms of:
Signup and view all the answers
'Economic Obsolescence' refers to depreciation caused by:
Signup and view all the answers
'Reproduction' cost appraisal involves:
Signup and view all the answers
What does Insured Value represent for a property?
Signup and view all the answers
How is Reproduction Value different from Replacement Value?
Signup and view all the answers
What concept considers the values of neighboring properties when determining a property's value?
Signup and view all the answers
What does Book Value for a property represent?
Signup and view all the answers
What is Salvage Value associated with in real estate?
Signup and view all the answers
What does Assessed Value serve as the basis for in real estate?
Signup and view all the answers
How is Depreciated Value determined for a property?
Signup and view all the answers
What does Investment Value focus on in real estate valuation?
Signup and view all the answers
What is the purpose of applying a suitable capitalization rate in the Income Approach to valuation?
Signup and view all the answers
Why may Gross Rent Multipliers (GRMs) not always produce precise value estimates?
Signup and view all the answers
What is one of the steps involved in the Comparative Market Analysis (CMA) approach?
Signup and view all the answers
What does FIRREA require regarding appraisals used in federally-related transactions?
Signup and view all the answers
In the Income Approach, why do investors refuse to pay more for a property with a certain income stream compared to others?
Signup and view all the answers
What is a key aspect of USPAP requirements for appraisers?
Signup and view all the answers
What should be done when making adjustments to comparables in the Comparative Market Analysis (CMA)?
Signup and view all the answers
Why might using only Gross Rent Multipliers (GRMs) to assess property value be limited?
Signup and view all the answers
Why are competent individuals required to conduct appraisals in federally-related transactions according to FIRREA?
Signup and view all the answers
How does the application of a multiplier in determining Gross Rent Multipliers (GRMs) contribute to property valuation?
Signup and view all the answers