Appraising

Chapter 16

What do you call the value of the property as carried on the accounts of the owner?

book value

Highest and best use of a property is that use which

is legal, feasible, and deemed the most appropriate by zoning authorities.

What type of value can be used to determine how much a new owner can charge for rent in his or her new investment property?

rental value

What do you call an increase in the market value of a parcel of land over time?

appreciation

Appraisers formulating their appraisals are most commonly in search of estimating what kind of value?

market value

_________ is the value based on the cost of constructing a precise duplicate of the subject property's improvements, assuming current construction costs.

reproduction value

In appraisal, loss of value in a property from any cause is referred to as

depreciation

The concept of market value is best described as

the price that a willing, informed, and unpressured seller and buyer agree upon for a property assuming a cash price and the property's reasonable exposure to the market.

The steps in the market data approach are

select comparable properties, adjust the comparable, estimate the value.

Which of the following is most accurate about a CMA (Comparative Market Analysis)

A significant difference between an appraisal and a broker's opinion of value is

the broker may not be a disinterested party.

The principal shortcoming of the gross rent multiplier approach to estimating value is that

numerous expenses are not taken into account.

As a component of real estate value, the principle of substitution suggests that

if two similar properties are for sale, a buyer will purchase the cheaper of the two.

What in large part determines a property's value?

the way the property is being used

In which of the following circumstances would a broker's opinion of value not be useful?