CH 13

A comparable property was offered on the market for 12 months at $229,000, with no offers. It was reduced to $219,000 and was on the market for another 10 months. It was reduced again to $159,000 and it sold for $156,000 in 4 months. What is the reasonable exposure time indicated by this property? 4 months 14 months 22 months 26 months

4 MONTHS

The most common market value definitions specify payment in terms of ____________ or in terms of financial arrangements comparable thereto. promissory notes good and valuable consideration pounds sterling cash in U.S. dollars

CASH IN US DOLLARS

"The total dollar expenditure to develop an improvement" is the definition of price value production cost cost

COST

It would take $275,000 to produce a single-family home on the owner's lot. This $275,000 figure represents the home's cost value price all of these

COST

Once stated, price is ________. an opinion a fact value synonymous with cost

FACT

True or False? Cost and value are the same. True False

FALSE

A value that cannot be imputed to any part of the physical property is called ___________ value. intransient intangible invisible impartial

INTANGIBLE

A property owner has a long-term lease on the property with a tenant who is paying $12 per square foot, but the market rental rate for this space is $8 per square foot. This is an example of intangible value salvage value an easement public interest value

INTANGIBLE VALUE

A bank acquires a property at foreclosure, and they need to sell it very quickly. They ask an appraiser to provide them a value opinion based on a restricted marketing time, and considering they are under extreme compulsion to sell. What type of value is this client asking for? investment value going concern value book value liquidation value

LIQUIDATION VALUE

The most common type of value sought by appraisers is liquidation value value in use market value going concern value

MARKET VALUE

"The amount asked, offered, or paid for a property" is the definition of value cost price worth

PRICE

A property owner purchases a lot for $100,000 and pays $400,000 to have a home constructed on it. When it is completed, the owner sells the home for $560,000. The appraiser for the buyer's mortgage company appraises the home at $525,000. The sales contract for $560,000 represents the __________ of the property. cost value price none of these answers

PRICE

Which of the following statements is FALSE? Price is a fact. Price and value are always the same. Price and value could be the same in some situations. Price could be higher than value.

PRICE AND VALUE ARE ALWAYS THE SAME

Exposure time is a _____________ developed by the appraiser. prediction statement of fact personal opinion retrospective opinion

RETROSPECTIVE OPINION

A property owner purchases a lot for $100,000 and pays $400,000 to have a home constructed on it. When it is completed, the owner sells the home for $560,000. The appraiser for the buyer's mortgage company appraises the home at $525,000. The appraiser's opinion of $525,000 represents the _________ of the property. cost value price all of these

VALUE

"In economics, the attribution of value to goods or services based on how much can be obtained for them in exchange for other goods and services" is the definition of value in exchange value in use contributory value investment value

VALUE IN EXCHANGE

What type of value is based on a specific use, which may or may not be the property's highest and best use? assessed value value in exchange value in use book value

VALUE IN USE

"The monetary relationship between properties and those who buy, sell, or use those properties" is the definition of value supply and demand price cost

VALUE

True or False? Market value must be as of a specific point in time.

TRUE

A transaction between unrelated parties who are each acting in his or her own best interest is the definition of arm's-length transaction typical financing market value exchange value

arms length transaction

The value of a property according to the tax rolls in ad valorem taxation is the definition of ___________ value. insurable ad valorem book assessed

assessed

_________ is related to production. Cost Price Value Demand

cost

A value that cannot be imputed to any part of the physical property is called ___________ value. intransient intangible invisible impartial

intangible

"The amount a particular purchaser agrees to pay and a particular seller agrees to accept under the circumstances surrounding their transaction" is the definition of value market value price cost

price

"The amount asked, offered, or paid for a property" is the definition of value market value price cost

price

"The price expected for a whole property, e.g., a house, or a part of a property, e.g., a plumbing fixture, that is removed from the premises usually for use elsewhere" is the definition of ____________ value. scrap replacement marginal salvage

salvage

"The monetary relationship between properties and those who buy, sell, or use those properties" is the definition of value supply and demand price cost

value

When is an appraiser required to develop an opinion of reasonable exposure time in an appraisal? when reasonable exposure time is a component of the definition of value being used only in appraisals for federal land acquisitions when liquidation value is being developed none of the above

when reasonable exposure time is a component of the definition of value being used