Ree 4103 - Study guides, Class notes & Summaries

Sales comparison approach - An opinion of market value is developed by comparing properties similar to the subject property that have recently been sold, are listed for sale or are under contract What is a major premise of the sales comparison approach? - An opinion of the market value of a property can be supported by studying the market's reaction to comparable and competitive properties Comparative analysis of properties and transactions - _____ focuses on similarities and differences ...

REE 4103 EXAM 1 QUESTIONS WITH COMPLETE SOLUTIONS A house built in 1965 and appraised in 1994 should have - Answer-a chronological (actual) age of 29 years A house has floor coverings that are four years old. Decorators in this area indicate that carpets of similar quality last about 10 years but typically go out of style after only six. What is the value of carpets with a reproduction cost of $5,000 - Answer-(4/6) x $5,000 = $3,333.33 A property sold for $125,000 in a cash sale. It was 1...

What is appraisal? Correct Answer-The act or process of developing an opinion of value of an asset What is USPAP? Correct Answer-Uniform Standards of Professional Appraisal Practice What is real estate? Correct Answer-An identified parcel or tract of land, including imporvements, if any. The physical land and appurtenances affixed to the land What is real property? Correct Answer-The interests, benefits, and rights inherent in the ownership of real estate (land, buildings, fixtures) ...

The concepts of land are - Legal, geographic and environmental, economic, and social. For appraisal purposes, market value may be defined as - The most probable selling price Appraisal is - The act or process of developing an opinion of value. What is Chattel? - Personal property is generally considered property that is movable,[1] as opposed to real property or real estate. What is a fixture? - any physical property that is permanently attached (fixed) to real property (usually land...

If a renewable lease option were found to be favorable to a tenant an appraiser: - can assume the tenant would exercise the option to renew Stabilized Net Operating Income should recognize the tenant improvements made to a property that are appropriate for the market. - true In determining income and expenses the first step is: - Lease and rent analysis A lease clause that limits the expenses of the landlord is termed a: (select all the answers that are correct) - expense stop clause an...

All are used in valuation of income-producing property except - income taxes Capitalization is employed in - income approach - income properties A gross lease is one that - tenant pays rent and landlord pays expenses When estimating the market value of an income-producing property, the appraiser will not consider: - income taxes attributable In income capitalization, value is measured as the present worth of the - NOI + Reversion Income capitalization techniques are not typically ...

info from transitional neighborhood to get stable An appraiser may be liable for all of the following except: Negligence Misrepresentation Fraud Low value - Low Value For appraisal purposes, market value may be defined as: - The most probable selling price Appraisal is - The act or process of developing an opinion of value. The concepts of land are - Legal, geographic and environmental, economic, and social. The tenant of a small, freestanding retail building is a baker who has i...

REE 4103 Exam 2 Questions with Complete Solutions.

REE 4103 EXAM Solved with Complete Solutions to Questions A gross lease is one that: Tenant pays for all operating expenses Landlord pays for all operating expenses Applies only to commercial properties Rent rises with the cost of living - ANSWER Landlord pays for all operating expenses

Which of the following is the best example of using an appraisal in litigation? Develop feasibility of construction or renovation project. Developing an opinion of fair value for financial reporting. To establish a basis for real property exchange.