| A | B |
|---|
| The value as determined by the appriasial is good for? | Only for the day of the inspection by the appraiser |
| Starndard form normally used for residential appraisals | Uniform Residential Appraisal Report (URAR) |
| Appraisers are expected to follow the | Uniform Standards of Professional Appraisal Practice (USPAP) |
| How is an appriasier's compensation based | Fee based as determined by time and effort required, not commision or percentage based |
| What is the purpose of an appraisal | Determine market value of property; used by lenders to assure relationship between loan value and property value is appropriate |
| Real estate licensee researches and evaluates comparable properties that have recently sold and used to help seller set listing price | Comparative market analysis (CMA) or Broker price opinion (BPO) |
| What the market will pay or the most probably price; may or may not be same as listing price whichi is often higher to allow for negotiations | Market value |
| What someone actually paid | Actual sales price |
| DUST - Demand, Utility, Scarcity, Transferabiity | Essential elements of value |
| PEGS: Physical and environmental forces, Economic forces, Government activiites, Social forces | Forces and factors afffecting value |
| Zoning laws, building codes, rent control are examples of | Governmental activities affecting value |
| Employment trends, wage levels, interest rates, lot premiums are examples of | Economic forces affecting value |
| Natural resources, climate, topography, flood conditions are examples of | Physical and environmental forces affecting value |
| Societal views on family size, population trends, accepted size of properties, geographical distribution of social groups are examples of | Social forces affecting value |
| Produces greatest net return; based on current use; an appraiser must show current one | Highest and best use principle of value |
| Value driven by anticipation of future benefits | Anticipation principle of value |
| Number of available properties of a certain type; price moves opposite of | Supply |
| Number of properties that will be purchased; price moves with | Demand |
| Basis of sales comparision approach to determine value; most important principle in appraisal | Substitution |
| Values tend to move towards surroundings | Conformity |
| Value of overimproved property declines | Regression |
| Value of underimproved property increases | Progression |
| Improvements add more value than they cost | Increasing returns |
| Improvements add less value than they cost | Decreasing returns |
| Increasing or decreasing returns on improvements | Contributions |
