The Uniform Standards of Professional Appraisal Practice (USPAP) And title XI of the financial institutions reform, recovery, and enforcement act of 1989. (FIRREA)
What are the two laws that require appraisers to be licensed and certified according to the individual state law?
100
Demand, Utility, Scarcity, Transferability
What are the characteristics property must have in order to have monetary worth based on desirability?
100
Anticipation
What is the principal that value is created by the expectation that certain events will occur?
100
Sales comparison approach (market data approach)
What is an estimate of valueA tamed by comparing the property being appraised would have recently sold comparable properties?
100
Income approach
What is to approach used for evaluation of incoming producing properties such as apartment buildings, office buildings, and shopping centers and is based on anticipation?
200
Appraisal
What is An estimate or opinion of value based on supportable evidence and approved methods?
200
Market Value
What is an opinion of value based on an analysis of data?
200
Competition
What is the principal of interaction between supply and demand?
200
the cost approach
What do you use when figuring out an estimate to reproduce or replace real property and is mostly used when figuring a cost for public buildings, schools, or churches?
200
Capitalization rate (cap rate)
What is the active estimating the rate of returnThat an investor will demand for the investment of capital in a type of building?
300
Competitive Market Analysis
What is based on recently closed properties sold in the area, properties currently on the market, and properties that did not sell in the area?
300
Market Price
What is the term used to explain what property actually sells for-it's sales price?
300
Conformity
What is the principal that maximum value is created when property is in harmony with its surroundings?
300
Replacement cost
What is The cost to construct an improvement similar to the subject property, using current construction methods and materials but not necessarily an exact duplicate?
300
Reconciliation
What is The act of analyzing and effectively weighing the findings from 3 approaches that will explain the appropriateness, relative reliability, and the type of value?
400
General data
What is the type of data that covers the nation, region, city, and neighborhood where an appraiser finds the physical, economic, social, and political influences that directly affect the value and potential of the subject property?
400
1. Most probable market price,
2. the buyer and seller are unrelated and acting without undue pressure
3. both the buyer and seller are well-informed
4. and reasonable time is allowed for exposure in the open market
5. payment is made in cash or its equivalent
What are essential considerations to determine market value?
400
Contribution
What is the principal that the value of any part of property is measured by its effect on the value of the whole parcel?
400
1. square foot method
2. unit in-place method
3. quantity survey method
4. index method
What are the 4 ways in appraiser could use to approach computing the reproduction or replacement cost of a building?
400
Net operating income/ capitalization rate= value
What is the formula to derive an estimate of the subject's market value?
500
General and Specific Data
What are The two types of data used to analyze and arrive at reasonable market value conclusion?
500
In the event of a loan default, the lender will know the value the property most probably can be sold for to recover the remaining loan balance
Why does the lender order an appraisal?
500
Highest and Best Use
What is the principle of when the use of property that is legal and feasible will bring the most money over time?
500
1. environmental
2. social
3. economic forces
What are indicators of external obsolescence that produce incurable depreciation?
500
Net Operating income
What is the term to describe the annual operating expenses?