AZ RE self study B-5

By definition what does an appraiser give in the course of his work A. A valuation B. An estimate C. A reaction D. All of these

An estimate

In using comparables in the market approach to real property value the appraiser is interested in listed prices because they tend to establish the what

Ceiling of market value

A real estate agent is preparing a CMA for the seller the sellers property is older and has a pool the comparable property is newer and has no pool how was the agent make the necessary CMA adjustments

Comparable property down for age and up for pool

The methods of unit cost in place quantity survey and cubic foot and square foot would most probably be used in which of the following appraising methods

Cost

Physical deterioration of a building that is curable would be referred to as

Deferred maintenance

What is the purpose of a date in an appraisal report

Define the market conditions under which the appraisal was made

What is the first objective of an appraiser A. Find comparables B. Gather facts C. Determine the value of the land D. Defined the problem and his approach to it

Defined the problem and his approach to it

The period of time that an improvement contributes value to the land is considered to be it's

Economic life

Which of the following does not relate to appraising A. Assemblage B. Establishing value C. Market data and cost approaches D. Deterioration and obsolescence

Establishing value

Appraisal licensing is required by

FIRREA

In real estate the word amenities refers to

Factors of convenience location beauty or utility

The customary procedure for arriving at the fair market value of an office building for selling purposes is

Figure the adjusted gross income deduct all cost of operation and divide the net operating income by the current rates of return for this type of investment

Poor layout of rooms would be included as an element of obsolescence in

Functional obsolescence

In appraisal terminology how would you judge the quotation a factory too close to home is

Incurable obsolescence

In the cost approach when figuring depreciation which does not qualify as a depreciation item

Land

In checking for conformity of a home in a particular neighborhood an appraiser would not consider

Listed price

What is the most important factor a developer would take into consideration in selecting a new area to develop

Location

The amounts expressed in terms of money actually paid for a property is it's 1-market price or 2-market value

Market price

The selling price of real estate is most generally based on

Market value

Square footage for purposes of estimating the replacement cost of improvement is derived by

Measuring outside dimensions

On which of the following properties would you most likely use the income approach to appraising A. Residential B. Condominium C. Office building D. Vacant land

Office building

In appraising commercial property which of the following would in appraiser not need A. Scheduled gross income B. Zoning C. Original cost D. Expenses of operation

Original cost

Which of the following is not a special force influencing value of property A. Gov regulations B. Social standards C. Original cost D. Economic trends

Original cost

Value is created by

People

Economic life refers to

Period During which the building contributes value to the land

The increase in value created by joining ownership of several smaller parcels of land into one large single ownership is called

Plottage increment

Under the principle of substitution A.property cannot be worth more than the cost of acquiring an equally desirable replacement property B.there should be a reasonable degree of uniformity in property values C. Excess profits 10 to encourage Ruinous competition D.A good structure substituted for a bad structure will not cure the ills of the surrounding neighborhood

Property cannot be worth more than the cost of acquiring an equally desirable replacement property

After the appraiser has used all three appraisal approaches to estimate value what process is used to arrive at one estimate of value

Reconciliation or correlation

When the cost approach is used to determine value which of the following applies A. Replacement minus depreciation B. Gross income minus expenses C. Net income plus land value D. Comparable properties in the area plus the land

Replacement minus depreciation

The method which is not an appraisal approach A. Sinking fund method B. Comparison method C. Cost method D. Income method

Sinking fund

It's a residential property is valued at over $1 million an appraiser would need which of the following qualifications

State certified appraiser

Market price is closest to

The amount of money given in exchange for the property

What is the best tech nique for an appraiser to use on a single-family residence that is new

The cost method is a valid approach which is the most effective on newer properties

What affirms that value is created by expected benefits to be derived in the future

The principle of anticipation

A legitimate reason for appraising a property

To settle an estate

What is the adjusted gross income and how do you arrive at it

Total rents less vacancies and credit losses

The word value as used in appraising is most nearly the same thing as

Worth