Real Estate Ch 14

Step 1 in estimating property value using the income approach is to

 

estimate annual potential gross income.

Susan estimated the value of the Jones's new house by comparing it to the cost of buying a similar lot and constructing similar improvements. She used

the cost approach.

When a sales agent prepares a brokers price opinion (BPO), what statement must be included?

That a BPO is not an appraisal

The stated purpose of the Texas Appraiser Licensing and Certification Board (TALCB) is to

 

protect consumers.

Under certain circumstances, appraisers may omit the step of going inside a property but may nevertheless submit an appraisal report. What is that appraisal called?

 

A drive-by appraisal

According to the income approach, if the capitalization rate increases, the property value

decreases.

When appraisers evaluate the facts and form a final opinion of value for a property, they are

reconciling valuation approaches.

Who sets the listing price of a property?

The seller, based on what they feel the property is worth

In the sales comparison approach, the sales price of the comparable property is adjusted to account for physical conditions and

features.

What is the minimum amount of course work needed to become an appraiser trainee?

79 hours of qualifying education

What is GRM?

Gross rent multiplier

The four characteristics of value are demand, utility, scarcity, and

transferability.