PSI Appraisal ?s
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| show | C
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| show | B The sales comparison is the most used approach to value vacant land. Reproduction cost approach is used for buildings, not land. Income approach when property produces rent.
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| A post office of unique design and construction is best appraised by which of the following approaches? a. sales comparison b. cost c. income d. gross rent multiplier | show 🗑
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| A real estate pro is doing a CMA(comparitive market analysis) for a residential home. She would use all of the following EXCEPT: a. original cost b. date of sale c. financing terms d. location of property | show 🗑
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| show | B
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| show | D The original cost of the property is not sued in any approach to value. In an appraisal, the appraiser uses market sales, reproduction cost and income value to determine market value.
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| Compared to physical live, economic life is usually: a. shorter b. the same c. shorter or longer depending on type of improvement d. longer | show 🗑
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| show | B Reconciliation (correlation) is the final step in the appraisal process inwhich the appraiser weighs each approach to value & determines which is most relevant for the type of property being appraised. Averaging is NEVER used in reconciliation.
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| Replacement cost is best described as the: a. cost of building a property of equivalent utility w/ the same or similar materials b. original cost adjusted for inflation c. cost of building an exact replica of the subject | show 🗑
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| The income approach would be used for appraisals of: a. properties rented to tenants b. newly opened subdivisions c. heavily mortgaged properties d. heavily insured properties | show 🗑
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| show | A Economic life is never greater than the phsycial life, but is usually less. Physical life refers to how long the structure can stand and economic life refers to how long it is profitable to keep standing.
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| The sales comparison approach to value would be best used for which of the following: a. school b. single family dwellings c. apartment property d. industrial property | show 🗑
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| show | C Depreciation may occur from physical deterioration, functional obsolescence or economic obsolescence. Economic obsolescence, being incurable, would cause buildings to be torn down before they fall down.
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| show | D
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| Two appraisers were asked to appraise an apartment property. 1st appraiser used a cap rate of 6%, 2nd used cap rate of 8%. Which property with the higher cap rate will have a: a lower income b lower value c higher value d higher projected income | show 🗑
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| show | Interest payments on laons are presonal expenses of the owner and will vary from one investor to another. Therefore, they are not calculated when determining property expenses.
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| show | A The formula used in the income approach is: net income divided by cap rate = value. For example, if income is $15000 and the cap rate is 10%, the value is $150,000 (15,000/10%)
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| An appraisal is: a. market value b. opinion of value c. scientifically determined value d. legal value | show 🗑
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| show | B The principle of contribution values a component of a property in proportion to it contribution value of the whole. Maximum values result when improvements produce the greatest net return.
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| The principle that no buyer will pay more for a product than the price he can pay for a reasonable duplicate is known as the principle of: a. balance b. conformity c. competition d. substitution | show 🗑
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| show | A Unless those who want an item can afford to purchase it, their demand will not have any effect on the value of the item.
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| show | D Market price is the actual price paid; market value is the listing price. Assessed value is used by the tax assessor.
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| show | C The essential elements of value are demand, utility, scarcity and transferability, or DUST
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| show | D
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| show | A
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| The listing price of the property is known as: a. assessed value b. market value c. actual price d. market price | show 🗑
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| show | C The principle of regression states that the value of better quality property is adversely affected by the presence of lesser quality property. The principle of progression is opposite.
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| To realize the maximum value of property, a reasonable degree of sociological & economic homogeneity is necessary but should not become monotonously uniform is: a. progression b. conformity c. contribution d. correlation | show 🗑
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| show | D Principle of contribution determines if an improvement or upgrade adds value to the property. Determined by what the market will pay for the upgrade, not the cost of it.
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