Federally related appraisals must follow the guidelines

Section 13: Property Valuation Flashcards

Which North Carolina licensee may perform a Broker Price OpinionI. Provisional brokerII. Full Broker- I only- II only- Either I or II- Neither I or II II only Federally related appraisals must follow the guidelines stated in- The North Carolina Real Estate Commission rules- The Society of Real Estate Appraisers Code of Ethics- The Uniform Standards of Professional Appraisal Practice- Policy manuals provided to appraisal students at their universities The Uniform Standards of Professional Appraisal Practice

Functional Obsolescence can best be described as:-

Valuation of a property based on its zoning requirements.- Depreciation due to changes in the surrounding area, such as an interstate.- The functions of the Appraisal Qualifications Board.- Depreciation due to changes in style, tastes, or needs.Depreciation due to changes in style, tastes, or needs The period of time over which an improvement to the property will contribute to its value is known as its- amortized life.- chronological life.- actual life.- economic life economic life The _______ method uses the _______ and effective age of the property.- Age/life; chronological age- Age/life; economic life- Breakdown; economic life- Breakdown; chronological age Age/life; economic life The principal that is the basis for the sales comparison approach is the principal of- replacement- highest and best use- competition- substitution substitution Which of the following is NOT one of the conditions assumed to be present for a normal sale at market value?- Both parties are knowledgeable of fair prices and reasonable property value.- The property does not sell immediately or after an extended period.- Conventional or creative financing is used.- The price is set based upon the property valuation under ordinary terms.Conventional or creative financing is used Which of the following is NOT a requirement for a licensed appraiser to conduct their duties?- Stay within the standards of the USPAP.- Be certified within the standards of the AQB.- Be certified within their individual state's standards.- Work in tandem with other appraisers to ensure the integrity of work.Work in tandem with other appraisers to ensure the integrity of work Which of the following principles of value state that the highest a property's value can be is as high as a similar property?- Substitution- Conformity- Highest and Best Use-

Change Substitution What are the four phases in the real estate life cycle of change?- Growth - Stability - Income - Depreciation-

Growth - Income - Recovery - Decline- Growth - Stability - Decline - Recovery- Growth - Income - Depreciation - Recovery Growth - Stability - Decline - Recovery

A $250,000 home is being built in a residential neighborhood. The block next to the home is being rezoned to allow a mix of residential and retail uses. Because of this future zoning change, the value of the home dropped to $200,000. This is due to the principle of?- substitution.- competition.- anticipation.- supply and demand anticipation If a property's annual net income is $24,000 and it is valued at $300,000, what is its capitalization rate?- 8%- 15.5%-

10%- 12.5%

8%

Transferability refers to:- Merging two existing properties to

increase value.- The resulting gain in value from merging two properties.- The ease of transferring titles and therefore ownership of properties.- The transfer of money over time in an investment property.The ease of transferring titles and therefore ownership of properties The market value of a parcel of land is- An estimate of the present worth of future benefits- A measure of past expenditures- The price the seller wants for the property- Equal to assessed value An estimate of the present worth of future benefits What is the calculation for net operating income?- Effective gross income minus operating expenses- Potential gross income minus operating expenses- Effective gross income minus vacancy loss- Potential gross income minus vacancy loss Effective gross income minus operating expenses The income capitalization approach is given the most weight in the valuation of- A single-family residence- A one-bedroom condominium- An office building- A school An office building Each legitimate comparable should be as similar as possible in all the following EXCEPT- location- sales price- date of sale- square footage sales price If the GRM in a neighborhood is $125 and the monthly rent in a duplex is $1,000 per unit, then the approximate value of the property is?- $137,500- $250,000- $125,000-

$1,500,000.00

$250,000