L18: Property Valuation Flashcards

L18: Property Valuation Flashcards

It goes up.Supply and price move in:- opposite directions- the same

direction is the value placed on a property by a governmental unit for use in calculating property taxes.Which value is given to a property by the local tax authority for tax purposes?- assessed value- appraised value- market value- All choices are correct.is the amount a ready, willing, and able buyer agrees to pay (and a seller agrees to accept) for a property.market price Only an owner has the right to use a property. plottage Assemblage is combining lots. Plottage is the resulting increase in value.What term identifies an economic preference for a certain location?- durability- fixity- situs- uniqueness who the previous tenants wereWhen finding comparable properties, it's BEST to look at

properties:sold within the last six monthssold over six

months agosold over a year agosold within the last year the act of combining parcelsWhat is the difference between assemblage and plottage?- Assemblage is done by a real estate agent. Plottage is done by a developer or subdivider.- Assemblage is combining lots. Plottage is the resulting increase in value.- Assemblage is combining residential lots. Plottage is combining commercial lots.- Assemblage requires the approval of the zoning board. Plottage does not.correct increaseWhich of the following would motivate builders to build new houses right away?- low prices of real estate- low prices of raw land- expectation of recession- high cost of constructionincorrect sold within the last six monthsIf an agent is comparing a home with a pool to the subject

property (which has no pool) the agent will:- establish an

average price between the two properties- add the pool's price value to the subject property's sales price- have the subject property owner add a pool to make the property more competitive- subtract the pool's price value from the comparable property's sales price $400,000Market Value fair, normal conditionsappraised value There are a lot of buyers and sellercomparative market analysis (CMA) If 12 properties have been sold in the last 3 months in an area, and there are 20 houses for sale now, there is a

supply of housing for:- 3 months- 5 months- 4 months- 6

months If 12 properties have been sold in the last 3 months in an area, and there are 20 houses for sale now, there is a

supply of housing for:- 3 months- 5 months- 4 months- 6

months the price at which property would sellPrice low prices of raw landWhich of the following affects the price of real estate?- demand for property- unemployment- All choices are

correct.- supply of money

taxable valueWhen supply decreases and demand increases in a market, what happens to price?- It goes up.- It stays the same.- It goes down.- Price is not affected by supply and demand.Appreciation describes the growth in value that most property will gain over time.An exciting new development is being created, but the developer is only putting three lots up for sale (and keeping the rest). Many buyers in town want to be the one to own one of these three lots. Which two characteristics of value does this demonstrate?- utility and transferability- demand and scarcity- scarcity and transferability- demand and utility is a statement regarding the usefulness or utility of property, but not the value of it.Which one of these is an appraisal?- A tax assessor assigns a value to a home.- A licensed appraiser assigns a value to a home.- A buyer decides how much they are willing to pay for a home.- A real estate agent assigns a value to a home.correct assessed valueWhich of these is the depreciated value of a property?- insured value- market value- mortgage value- actual cash value actual cash value- the value used by a taxing authority to levy taxes- assessed value minus the value of any tax exemptions- appraised value- actual cash value- taxable value- condemnation value opposite directionsIncreases in the cost of financing, cost of construction, and

land values can cause the price of real estate to:- deflate-

increase- decrease- become stagnant The average number of months it will take to sell a house in

a buyer's market is:- 12 months or more- 0 - 4 months- 6

months or more- 4 - 6 months

• months or more

low housing supplyWhich of these statements about broad markets is true?- There are a lot of buyers and few sellers.- There are a lot of buyers and sellers.- There are not a lot of buyers or sellers.- There are a lot of sellers and few buyers.is the increase in value by successful assemblage, usually due to use.assemblage

actual cash valueThe principle of contribution states:- The present value of a

property is affected by the anticipated income or utility that property will give its property owner.- A property's overall value is made up of the combined value of each of its parts.- The value of something is affected by the cost of getting a similar item elsewhere.- The value of something is determined by adding the assessed and previous market values to find the average of the new value.A property's overall value is made up of the combined value of each of its parts.Two super fancy homes have been built on Frank's block recently. Because they sold for so much money, the value of his home has increased as well. Which economic

principle does this illustrate?- the principle of progression- the principle of competition- the principle of regression- the principle of conformity