Section 9, Unit 3: Qualifying the Collateral
Which of the following is the cost of replacing a building in the case of total loss?
Insured value
What type of property is Aileen appraising if she's using the income approach?
A short-term lake rental
What type of property is Gerald appraising if he's using the cost approach?
An industrial warehouse
This could happen if a factory were put in next door that changed and impacted property value.
External obsolescence
Rico is an appraiser who is performing a valuation on a property. What's another term for what Rico is doing?
Formal appraisal
Kobi, an appraiser, is appraising a single-family home used for a rental. If he wants to use the income approach, he will likely use ______.
GRM
Boris is an appraiser working for the Smith family. They've hired him to perform an appraisal on their six-bedroom house. What two types of data will Boris gather?
General and specific
Appraiser Jamie is looking past how a property is being used to determine a higher value. What is Jamie determining?
Highest and best use
Which approach to finding value would licensed appraiser Christina probably weigh most heavily when appraising a three-unit rental property?
Income
Your client, Skip, is an investor who's just opened a thriving new sporting goods store in a location outside the city. What principle of value indicates that his thriving business will attract others to engage in similar activity in the same area, driving down his profits?
Principle of competition
Which appraisal approach will likely weigh most heavily during the reconciliation step when appraising a single-family residence?
Sales comparison
What is reconciliation?
The final estimate of value based on results of the appraiser's approaches to value
What is the purpose behind Appraiser Independence Requirements?
To protect appraisers' ability to assess an accurate value for a property by avoiding outside pressure or influence
Which of the following terms means the price a property is worth to its owner as currently enjoyed?
Value in use