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