Texas Principles of Real Estate 2: Chapter 2 Miniquizzes
Economic obsolescence
A loss in value due to factors away from the subject property but adversely affecting the value of the subject property is known as...?
Pro-forma
A single value is derived from the three appraisal methods of determining value during the ............ process?
Uniform Residential Appraisal Report
A typical residential appraisal report is issued on a...?
Determine the highest and best use
After the needed data has been obtained and verified, what is the next step in the appraisal process...?
Income approach
An investor is in the process of purchasing an office building. The bank providing the mortgage for the property requires an appraisal to be done. Which of the following appraisal methods will the appraiser most likely use to determine the value of the office building...?
Sales comparison approach
David is in the process of buying his first house. David's lender requires an appraisal to be done on the property. Which of the following appraisal methods will most likely be used to determine the value of David's house...?
300 hours
How many hours of appraisal education is required to become a general certified real estate appraiser...?
75 hours
How many hours of appraisal education is required to become an appraiser trainee...?
No experience is needed
How much experience is needed to become a real estate appraiser trainee...?
Appraiser
One qualified by education, training and experience who is hired to estimate the value of real and personal property based on experience, judgment, facts, and use of formal appraisal processes is referred to as a/an...?
Utility
The capacity to satisfy human needs and desires is referred to as...?
Reproduction cost
The cost of replacing the subject improvement with one that is the exact replica, having the same quality of workmanship, design and layout, or cost to duplicate an asset is known as...?
Effective Demand
The desire for possession or ownership backed by the financial means to satisfy that need is referred to as...?
Market Value
The highest price in terms of money which a property will bring in a competitive and open market and under all conditions required for a fair sale is referred to as...?
Net operating income
The income approach determines value by applying a capitalization rate to the...?
Physical deterioration
The loss in value brought about by wear and tear, disintegration, and use and actions of the elements is known as...?
Depreciation
The loss of value of a property brought about by age, physical deterioration or functional or economic obsolescence is referred to as...?
Market value
The most common objective of an appraisal is to develop an opinion of...?
Market data approach
The sales comparison approach is also referred to as the...?
Scarcity
The supply of property in relation to effective demand is known as...?
Cost approach
This appraisal method consists of an analysis in which a value estimate of a property is derived by estimating the replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding the market value of the land...?
Sales comparison approach
This appraisal method consists of comparing similar type properties, which have recently sold, to the subject property...?
Determine the value of the land as if it were vacant
What is the first step an appraiser takes when valuing a property using the cost approach...?
State the problem
What is the first step in the appraisal process...?
List the data needed
What is the second step in the appraisal process...?
All of the above
When using sales data to compare to the subject property, appraisers should use sales that are...? -Current -Comparable -Close -All of the above
All of the above
Which of the following externalities can have a negative effect on home values...? -Proximity to a landfill -Proximity to a power plant -Proximity to a noisy highway -All of the above
Incurable
.............. depreciation cannot be fixed at an economically feasible cost?
Highest and best use
The most probable use to which a property is suited that results in its highest value or highest returns to the land is known as...?
Value
The present worth of future benefits arising out of ownership to typical users/investors is known as...?
Transferability
The relative ease with which ownership rights are transferred from one person to another is known as...?
T (True)
True or False: Real estate appraisers used to appraise a property cannot be selected by the real estate brokers involved in the transaction...?
Cost approach
Which of the following appraisal methods will most likely be used to determine the value of a church...?
Appraiser trainee
Which of the following is the lowest real estate appraiser classification...?
