| A | B |
|---|
| The final price for each comparable property reached after all adjustments have been made is termed | final adjusted sale price |
| What is included in accrued depreciation when applying the cost approach to valuation? | physical obsolescence, functional obsolescence, & economic obsolescence |
| The final price after reconciliation of the answers obtained from two or more approaches is termed the: | final estimate of value |
| A new house in good condition that has a floor plan would suffer from what type of accrued depreciation? | incurable functional obsolescence |
| To reflect a change in market conditions between the date on which a comparable property sold and the date of appraisal of a subject property, what type of adjustment is made? | Market Conditions |
| An estimate of the value of some interest(s) right(s) in real estate (not just physical) | Real Estate Appraisal |
| Users of Market Value Appraisals | banks, buyers, owners, developers, IRS, government for imminent domain, insurance companies |
| Most probably selling price, assuming "normal" sale conditions | market value |
| value to a specific investor | investment value |
| Price actually paid for a specific property | transaction price |
| A board of appraisers that handle ethics and standards of the appraisal practice | Uniform Standards of Professional Appraisal Practice (USPAP) |
| A. Definition of the problem B. Preliminary Analysis, data selection, and collection C. Highest and Best Use Analysis D. Application of the three approaches to valuation E. Reconciliation of the value indications into a final value estimate F. Report of defined value | A summary of the Traditional Appraisal Process |
| Includes all the detail and information that were relevant to deriving the market value or the other conclusions within the report | Self-contained appraisal report |
| summaries the conclusions of the appraisal | Summary Appraisal Report |
| Minimal discussion of the appraisal with large numbers of references to internal file documentation | Restricted Appraisal Report |
| Most common appraisal report | Uniform Residential Appraisal Report (URAR) |
| Identical in every way except one. Best example is the same property sold twice. Only difference is age and time | Matched Pair |
| Minimize the need for adjustments on these key characteristics | Goal of selecting comparable properties |
| Statistical Analysis of data by computeres | Automated Valuation Systems (AVMs) |
| Cost at current prices to produce an exact replica of the improvements being valued. Must be done in the exact same methods | Reproduction Cost Method |
| Cost at current price to produce improvements of equal utility to those being value | Replacement Cost Method |
| Based on cost per square or cubic foot | Unit Comparison (Most Aggregate) |
| Separates the structure into its major components | Unit in Place (Segregated Cost) |
| Separates the structure into its individual components, most minute detail, very common in Europe | Quantity Survey |
| Loss in value due to changes in tastes, preferences, technological innovations, or market standards | Functional Obsolescence |
| Loss in value due to wear and tear, aging, and ordinary use | Physical Deterioration |
| Loss in value due to changes beyond property boundaries | External Obsolescence |
