Which of the following is NOT part of Market Value?
The price for which the property last sold
Relation to the price at which the property should sell in the open market
Assuming buyer and seller are sufficiently well informed
Allowance of time for reasonable exposure on the market
What is an AVM?
Automated Valuation Model
Appraiser Vehicle Model
Appraisal Value Method
After Valuation Mediation
What is the first step in an appraisal?
Compare similar sold properties
Gather Data
Drive around the neighborhood
Define the problem
What type of valuation is most often provided to lenders for distressed properties?
Broker’s Price Opinion
Real Estate Appraisal
Short Sale Opinion
CMA
What is used in the Gross Rent Multiplier?
Sale Price and Fixed Costs
Sale Price and Depreciation
Sale Price and Monthly Rental Rates
Sale Price and Property Tax
Which statement is correct, generally speaking, concerning external obsolescence?
caused by the aging process.
due to poor maintenance
It is a type of depreciation that is incurable
caused by architectural faults.
What does peeling paint indicate?
Functional obsolescence
Physical deterioration
Economic Obsolescence
Plottage
Which are the Three Distinct Boards of TAF?
There is only one: The Appraisal Standards Board
Appraisal Qualification Board, Appraisal Standards Board, Appraisal Practices Board.
Appraiser, Appraiser Qualifier, Appraisal Law.
Appraisal Brokers, Appraisal Oversight, and Appraisal Training.
Which of the following best describes the principle that a home maintains its highest value when surrounded by similar types of homes?
Consistency
Conformity
Highest and Best Use
Best Market Value
Which principle does the market data approach use?
Substitution
Replication
Reproduction
Conformity
17ch-REU-PL-Qonly-quiz
Using borrowed money to purchase investment property is an example of which of the following?
Nolo Contendere
Caveat Emptor
Leverage
Depreciation
The following are all methods of appraising businesses EXCEPT?
The Good Will Approach
The Cost Approach
Liquidation Analysis
Income Capitalization Analysis
Which of the following would be regarded as an intangible asset?
The number of workers required to operate the business
The number of orders per day
Machinery
The good reputation of the business
If a property is valued at $280,000 and generates $1,750 per month what is the annual percent return (Cap Rate)?
8.0% (Percent)
7.5% (Percent)
5.5% (Percent)
6.5% (Percent)
In Accrual accounting which of the following is true?
Accrual accounting is not a recognized method.
Debts and Income are shown when bills are received and invoices are issued
Accrual accounting is only used in multi-million dollar corporations
Debt and Income are only shown when bills are paid and deposits are made.
If the Cap Rate measures the amount of risk involved which of the following is true?
The higher the Cap Rate the higher the Sale Price should be.
The Lower the Cap Rate the greater the risk
Cap Rate takes into account Debt Service Expenses
The Higher the Cap Rate the greater the risk.
What does the acronym REIT represent?
Regular Economic Investment Theory
Real Estate Income Theory
Realty Earning Income Tax
Real Estate Investment Trust
Fred wants a Cap Rate of 12.5% from an apartment building he wants to buy. If three units are rented for $450/mth, three for $500/mth and 2 for $600/mth what is the maximum price Fred should Pay for the building?
$38,800 (Dollars)
$500,625 (Dollars)
$388,800 (Dollars)
$50,625 (Dollars)
Investing in Real Estate has some disadvantages, such as which one of the following?
Lack of Liquidity
Building Equity
Good Rate of Return
Hedging against inflation
A business that has been in operation for a long time has what type of Value?
Going Concern Value
Historic Value
Tax Shelter Value
Market Value