"Appraiser": - Correct Answer One who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective.***
Real property includes: - Correct Answer The physical land and improvements together with legal rights to own or use the property.
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Gold Coast Chapter 16 (ANSWERED)
"Appraiser": - Correct Answer One who is expected to perform valuation services competently and in a
manner that is independent, impartial, and objective.***
Real property includes: - Correct Answer The physical land and improvements together with legal rights
to own or use the property.
"Cost": - Correct Answer The actual or estimated amount required to create, produce, or obtain a
property. It includes labor, materials, financing expense, land, management, and overhead, and the
contractor's profit necessary to bring the finished product to the market. Cost may be more than, or less
than, the market value of the property.***
"Price": - Correct Answer Price is the amount that is actually paid in a real estate transaction. It is not
necessarily the asking amount or amount offered, and may not represent the actual market value of the
property. It may be more than, or less than, the market value. Nonetheless, it is the amount that the
buyer is willing to pay and the amount the seller is willing to accept.***
"Value": - Correct Answer An opinion of the worth of a property at a given time in accordance with a
specific definition of value. It is the monetary relationship between properties and those who buy, sell,
or use those properties. There are many types of value, each of which has a different definition. In
appraisal practice, value must always be qualified.***
Market value: - Correct Answer The amount that SHOULD be paid for a property, but not necessarily the
amount that is asked or actually paid.
The following 4 elements interact to create or affect the value of real estate: - Correct Answer Demand;
Utility;
Scarcity;
Transferability.
, Demand: - Correct Answer From an economic standpoint, demand has 2 components; 1) desire for the
item or service;**
2) the financial ability to pay for it.**
Utility: - Correct Answer Real estate must serve a purpose or be useful in order to have value.
Scarcity: - Correct Answer Real estate that is in short supply relative to the demand for it has scarce
value.
Transferability: - Correct Answer The ability to convey marketable title is paramount to the value of real
estate.***Although a property with a defective title can be conveyed, it is risky and a purchaser may
substantially discount the price if they feel they would incur time and expense in curing the defect.
Assessed value: - Correct Answer The value assigned by the property appraiser for ad valorem tax
purposes.
Insurable value: - Correct Answer (Or insurance value), is the value used by insurance companies as the
basis for insurance coverage. Insurable value is often considered to be the replacement or reproduction
cost plus allowances for debris removal or demolition and non-insurable items.
Insurable value is less than the property's appraised market value, because: - Correct Answer It
excludes the value of the land on which the building stands.
Investment value: - Correct Answer The value of a particular property to a particular investor.
Liquidation value: - Correct Answer The amount that remains after all assets of a business have been
sold in a hurried, but not forced, sale and all liabilities have been paid.***It is the value of a failing
business that is not expected to continue. It can also be used to estimate the minimum value of a
profitable business.
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