Exam (elaborations)
REE 4103 Exam 1 FSU Bailey Fall 2018 (1).
REE 4103 Exam 1 FSU Bailey Fall 2018 (1).
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REE 4103 Exam 1 FSU Bailey Fall 2018The concepts of land are - ANS-Legal, geographic and environmental, economic, and
social.
For appraisal purposes, market value may be defined as - ANS-The most probable
selling price
Appraisal is - ANS-The act or process of developing an opinion of value.
What is Chattel? - ANS-Personal property is generally considered property that is
movable,[1] as opposed to real property or real estate.
What is a fixture? - ANS-any physical property that is permanently attached (fixed) to
real property (usually land). Considered part of the land itself and not a separate piece
of property. Generally speaking the test for deciding whether an article is a fixture or a
chattel turns on the purpose of attachment. If the purpose was to enhance the land the
article is likely a fixture. Fixtures are included in the appraisal report. Ask the client if an
item is a fixture or not
What is a trade fixture? - ANS-an article that is owned and attached to a rented space
or building by a tenant and used in conducting a business. Trade fixtures are not
included in the appraisal report.
The tenant of a small, freestanding retail building is a baker who has installed ovens for
baking bread. The ovens are large and heavy and the back wall of the building had to
be removed for the ovens to be installed. The appraiser is performing a refinancing
appraisal of the real estate only. Should the ovens be included in the appraisal? -
ANS-The appraiser generally would not include the ovens because they are trade
fixtures.
An appraiser may be liable for all of the following except - ANS-Low value. An appraiser
is liable for negligence, misrepresentation, and fraud but not low value as it is an opinion
of value not fact.
The amount of a type of real estate available for sale or lease at various prices in a
given market at a given time is the - ANS-Supply
, Factors outside a property that exert both positive and negative influences on the
property's value - ANS-Externalities
The amount of a type of real estate desired for purchase or rent at various prices in a
given market for a given period of time is the - ANS-Demand
The perception that value is created by the expectation of benefits to be derived in the
future - ANS-Anticipation. Also the income approach
What is Price - ANS-Refers to the amount a particular purchaser agrees to pay and a
particular seller agrees to accept in a transaction
What is Cost? - ANS-Refers to the production/construction not the amount paid in
exchange
This appraisal principle that states that when several similar or commensurate
commodities, goods, or services are available, the one with the lowest price will attract
the greatest demand and widest distribution - ANS-Substitution
Substitution - ANS-Property values tend to be set by the price of acquiring an equally
desirable substitute property.A buyer will not pay more for one property than for another
that is equally desirable.This is the primary principle upon which the cost and sales
comparison approaches are based.
The result of the cause and effect relationship among the forces that influence real
property value - ANS-Change
All of the following are agents of production except - ANS-Land Labour and Capital. Not
Entrepreneurial Effort
An appraiser gathers market data from a neighborhood where new, high-rise apartment
buildings are replacing older, small, multifamily residences. The appraiser uses this data
to reflect the value of small, multifamily residences in a stable neighborhood. The
appraisal is rejected by a local bank on the grounds that it is unreliable. (Appraiser took
info from transitional neighborhood to get stable neighborhood value estimate). What
principle of value was violated? - ANS-Substitution and Anticipation
Theory that when several similar or commensurate commodities, goods, or services are
available, the one with the lowest price attracts the greatest demand and widest
distribution. - ANS-Substitution
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