101 Multiple choice questions
- Any constant, contiguous area that may be identified by similar characteristics of physical boundaries.
statements that protect the appraiser and the client and inform other
intended users of the appraisal report about the limitations on the use
of the report.
appraisal method that estimates the value of real estate by analyzing
the amount of income the property currently generates, or could
generate, often comparing the subject property to other similar
- The date for which value was established.
client and any other party as identified, by name or type, as users of
the appraisal, or appraisal review report by the appraiser based on
communication with the client at the time of the assignment.
- Exact position of real estate.
floor area of a building measuring from the exterior of the
walls--includes the superstructure (floor area) and the substructure
assignment condition established by applicable law or regulation, which
precludes an appraiser from complying with a part of USPAP.
- Statement by the appraiser explaining the framework used to reach the appraisal value.
economic theory that says an informed buyer will not pay more for a
property, or a feature in a property, than a comparable substitute.
- A legal description for land, referencing principal meridians and base lines designated throughout the country.
appraisal method that estimates the value of real property by comparing
the property being appraised with other, recently sold properties in
the same area. Data are collected and adjustments made for differences.
transaction that occurred under typical condition in the marketplace,
with each of the parties acting in their own best interest.
- Visual Examination of physical structure and systems of a house.
electronic media, and online sources that give estimated construction
costs for various types of buildings in different areas of the country.
general pattern of four phases (growth, stability, decline, and
revitalization), which neighborhoods, districts, and other market areas
typically (but not universally) go through.
- A number derived from comparable rental property in an area, which is then used to estimate the value of a piece of real estate.
condition, related to a specific assignment, which is contrary to what
is known by the appraiser to exist on the effective date of the
assignment results, but is used for purpose of analysis.
- Provisions in a zoning ordinance that do not allow structures to be built within a certain distance of property lines.
the functional equivalent (substitute) of the original building, using
modern materials, usually with one that is the same size, layout,
quality, and utility of the original.
- Process of determining the value of specific property characteristics or features by comparing pairs of similar properties.
or able to be fixed; something that can be fixed at a reasonable cost,
with the value added to the property being more than the cost of the
load bearing skeleton of the house to which interior walls, exterior
walls, and roof are attached. Can be platform, post and beam, or
- Part of Specific Data - data that includes information about comparable sale properties, as well as income and cost information.
- Any type of interior work to a house or building that is not part of the finish work, i.e. plumbing, HVAC, electrical.
dimension across the access side of a parcel of land (usually along the
road). When a lot size is stated, it is the first number.
assumption, directly related to a specific assignment, as of the
effective date of the assignment results, which if found to be false,
could alter the appraiser's opinions or conclusions.
- Any interest in real estate one may have other than the full bundle of rights.
- The price the property sold for in an actual transaction.
- The difference between the lowest and highest numbers in a number set.
- The rise of a roof as stated in vertical inches per horizontal foot.
- Statistical value that describes the center or middle number in a set of numbers.
- Crops planted on the land/property of a tenant, and therefore considered an element of personal property.
that covers the forces that affect property values, but are not
directly related to a particular piece of property. The data covers
economic, governmental, social, and physical factors, and can be local
- Process whereby local authorities, sometimes engineers, are charged with ensuing compliance with prevailing building codes.
- The most probable price that a property should bring in a competitive open market.
- A way to convert a property;s income figure into an estimated value.
- Something that cannot be fixed at a reasonable cost with the cost of the repair being more than the value added to a property.
- An exception that allows a property owner to legally deviate from certain building codes or setback requirements.
- The amount of time that a property is available sale or lease.
- When something outside the control of a property makes it less desirable.
- Other similar, recently sold properties in the same market area as the subject property.
space that is finished, livable, and above grade. Garages, finished
basements, and storage areas usually do not count.
permit obtained from the local zoning authority allowing the holder to
use property or build a structure in a way that violates the zoning
- A loss in value of property for any reason.
of heat needed to raise the temperature of one pound of water by one
degree Fahrenheit. (Measure of furnace, A/C capacity)
- The type and extent of research and analyses in an appraisal or appraisal review assignment.
as a percentage, it is the amount of interest earned by an investor for
use of his or her money for a specific period of time.
use or uses of an appraiser's reported appraisal or appraisal review
assignment opinions and conclusions, as identified by the appraiser
based on communication with the client at the time of the assignment.
- A pre-existing condition allowed to continue under old laws, even though laws have since changed.
percentage rate of return used to calculate the present value of future
income. It is used for the income approach to appraisal. Also called
of a township one-mile by one-mile square, used for the government
survey system; one section equals 640 acres, 36 sections equal one
- Creating future assumptions based on current data models and trends.
- A method for calculating depreciation by taking a figure for each kind of depreciation and combining them into one number.
floor area designed to be occupied and used by tenants measuring from
the center of joint positioning to the outside wall surfaces--includes
basements and mezzanines.
a tenant installs for use in his or her trade or business and that can
be removed by the tenant before the lease expires.
- When a building is less desirable because of something inherent in the design of the structure.
- A limit on the number of buildings that may be constructed within a given space.
length of time a property interest being appraised would have been
offered on the market prior to the hypothetical consummation of a sale
at market value on the effective date of the appraisal.
set up in a hierarchical fashion, such that all uses above the current
zoning are permitted. Pass-through zoning foes in only one direction.
principle that says the value of a home is positively affected by the
other homes in an area. Usually said about the "worst" home in the
- Part of Specific Data - data that includes information on the subject property site and improvements.
- A middle or inside lot.
- Local ordinances dividing a city, county, etc., into zones, specifying different types of land use.
- The period of usefulness that a building has remaining as of the day of the appraisal.
an exact duplicate (Replica) of the original building, giving the new
structure the exact look and feel of the original.
- Has more than one notable use such as a mix of residential and non-residential.
- Property for which a value opinion is sought.
- Any dwelling unit building on a permanent chassis and attached to a permanent foundation system.
- Basic structure on which the rest of the house will rest. Can be concrete slab, pier and beams, crawl space, or basement.
market value in use of all property, including real property, trade
fixtures, inventory, and the intangible assets of an established and
operating business with an indefinite life.
- Information that is relevant to the subject property. Two types of data are Subject Property Data and Comparative Purpose Data.
- A unit of land equaling 43,560 square feet, or 4,840 square yards, or 160 square rods, or 1/640th of a square mile.
principle that says the value of a home is negatively affected by the
other homes in an area. Usually said about the "best" home in the
- A demonstration of the process and diligence leading to communication of the final value opinion. Can be either written or oral.
- General swings in business, resulting in expanding and contracting activity during different phases of the cycle.
method of determining the approximate market value of a home by
comparing the subject property to other homes that have sold, are
presently for sale, or did not sell in a given area.
appraisal method that estimates the value of real estate by figuring
the cost of building the house or other improvement on the land, minus
depreciation, plus the value of the land.
- The most often or frequently occurring number in a data set.
land use that does not comply with the general zoning rules for the
zone in which it is located, but is permitted because it benefits the
public - i.e. a hospital in a residential neighborhood.
- A listing service whereby local member brokers agree to share listings and commissions on properties sold jointly.
appraisal standards promulgated by the Appraisal Foundation, and widely
recognized throughout the United States as accepted standards of
that a foundation sits on. Must be poured on solid ground, below frost
depth, and wider at the bottom than the structure to be supported.
- A statistical value that adds a series of values and then divides the total by the number of values in the set. (Average)
exception that permits a property owner to use land in a way that is
not allowed in that zone, such as a commercial use in a residential
- Applied to address how much less the property will eventually sell for if positioned to sell in a less-than-typical period.
- The income that could be produced by a property in an ideal situation, with no vacancy or collection losses.
use that does not conform to current zoning laws, but is allowed
because the property was being used that way before the new zoning law
- A written type if appraisal report. It allows the appraiser to comment fully on the opinions and conclusions of the appraisal.
- The amount of goods or services offered in the marketplace in exchange for something else.
- Analyzing the values derived from the different appraisal approaches to arrive at a final opinion of value.
government documents that acknowledge the proposed work meets the
department;s standards and grants permission for it to be performed.
- Price the seller sets for the property when it is first put on the market.
economic theory that says value is created by the expectation of future
benefits, such as profit, pleasure, tax shelter, production, income,
etc. It is the foundation of the Income Approach.
time during which a building can be used for its intended purpose and
generate more income than is paid out for operating expenses. Also
called "Useful Life".
theory that a particular item or feature of a property is only worth
what it actually contributes in value to that parcel of real estate.
- The area between a building and one side boundary of the lot on which it is located.
- 1. A condition that exists in the real estate market when there are slightly more homes available than buyers.
2. The right mix of capital, entrepreneurship, labor, and land that results in best return on investment from land. This determines the lands highest and best use.
- Income after expenses
means of setting construction standards, requiring builders to use
particular methods and materials. Adopted by authorities under their
exercise of police power for building codes to be enforceable.
- Potential gross income, less vacancy and collection losses.