Florida Real Estate Exam - Unit 16 - Real Estate Appraisal Flashcards

Florida Real Estate Exam - Unit 16 - Real Estate Appraisal Flashcards Situsthe place where a property is located Reconciliationpart of the appraisal process where the appraiser considers the various approaches to estimating value and reaches a final estimate of value based on the most appropriate appraisal approach for the subject property Appraisalprofessional opinion of value Depreciationdecline or decrease in value Incurabledeterioration to a property that cannot be remedied cost-effectively because the cost to repair exceeds the increase in value the repair will bring Subject Propertyproperty being appraised Curablecost to correct deterioration to a property is not more than the increase in value the repair will bring to the property Replacement Costthe estimated cost to reconstruct a similar property at current market prices Market Valuethe estimated amount a property will sell for considering normal market and transaction conditions Sales Comparison Approachappraisal method that estimates value based on sales and market data for similar properties in the local area Principle of Substitutionappraisal principle that states buyers are unlikely to pay more for a property than the cost of acquiring a similar (substitute) property Assemblagecombining two or more parcels of real property together into one larger tract Uniform Standards of Appraisal Practice (USPAP) set of professional and ethical rules applied by registered, licensed and certified appraisers Plottagethe increase in value resulting from joining two or more parcels of property together Regressionappraisal principle that states properties in the higher range of values for a given area are negatively impacted by the presence of less expensive properties in the local area Competitive Market Analysis (CMA)estimate of value for a property prepared by a real estate licensee using current market datauseful pricing strategy toolmay not be referred to as an appraisal Valuationprocess of arriving at an estimate of value for a property Progressionappraisal principal that states properties in the lower range of values for a given area are positively impacted by the presence of higher-end properties nearby Automated Valuation Modelsprograms that pull information from various data sources to provide an estimate of value for a particular property

Federally-Regulated Transactionreal-estate related financial transaction in which a federal financial institutions regulatory agency is involved Highest and Best Useappraisal principal that provides a property must be valued according to its maximum possible productivity Gross Income Multiplierestimate of value for an investment property calculated by dividing the sale price by gross annual rental income Gross Rent Multiplierratio of the sales price for an investment property to its before-expenses rental income Income Approachappraisal methodology that estimates the value of a property based on the income it generates Over-Improvementan improvement to property that is excessive compared to similar properties Cost-Depreciation Approachappraisal methodology that estimates market value for a property based on the land cost plus construction cost, less depreciation for the property