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38 Matching questions

  1. reconciliation
  2. BPO
  3. gross income multiplier
  4. substitution
  5. uniform standards of professional appraisal practice
  6. NOI
  7. cost approach
  8. reproduction cost
  9. sales comparison approach
  10. GIM
  11. competitive market analysis
  12. Brokers price opinion
  13. straight line method
  14. plottage
  15. regression
  16. functional obsolescence
  17. assemblage
  18. GIM equation
  19. incurable
  20. conformity
  21. curable
  22. external obsolescence
  23. income approach
  24. physical deterioration
  25. market value
  26. law of diminishing returns
  27. gross rent multiplier
  28. replacement cost new
  29. CMA
  30. capitalization rate
  31. GRM
  32. accrued depreciation
  33. net operating income
  34. GRM equation
  35. law of increasing returns
  36. depreciation
  37. progression
  38. economic life
  1. a number of years that improvement is adding value to land.
    number of years improvement is still useful for original purpose.
  2. b GRM
  3. c combines two adjoining lots to raise value.
    -1 larger lot has more value than sum of two separate lots
  4. d less expensive alt to appraisal
    (1) drive by to verify existence of property.
    (2) listing of comparable sales.
    *used by lenders for: home equity line, refinancing, portfolio management, loss mitigation, collections.
  5. e (economic age-life method)
    property cost is divided by # of years of it's expected life to get annual depreciation
  6. f fixing problem will raise value.
  7. g depreciation; loss of value due to problem not directly related to property.
    -loss cant be fixed by spending money.
    *environment, social, economic.
  8. h max value of property set by how much it would cost to buy similar property.
    -foundation of sales comparison approach.
  9. i brokers price opinion
  10. j estimate value by adding land value to reproduction or replacement cost of building (minus the depreciation).
    -uses substitution.
    *special purpose buildings.
  11. k GIM
  12. l estimate value by comparing it to actual sales of similar properties.
    -uses substitution.
    -minimum of 3 compared properties
    *single family homes
  13. m uses assemblage; more value when two lots are put together than their sum would be separately
  14. n depreciation; decline in physical condition.
  15. o construction cost at current prices of building that isn't exactly the same but serves the same purpose.
    -used with older homes
    -part of cost approach
  16. p comparison of prices of recent sold properties that are similar (size, location, amenities)
    -licensees prepare this for buyers and sellers
  17. q NOI
  18. r law where improvements don't increase income or value
  19. s most likely price for property; not average
    -includes comparable sales, potential income, expenses, replacement costs.
  20. t final step in appraisal process; combines all 3 methods to get estimate of market value.
    -not average. each method is weighted depending on what is being appraised.
  21. u property is like is soundings
    -design, construction, size, age.
  22. v sales price/ annual gross income.
  23. w construction cost of exact duplicate of previous building
    -part of cost approach
  24. x USPAP
  25. y loss in property value
    -land doesn't usually depreciate.
  26. z loss in value because of;
    (1) physical deterioration
    (2) external depreciation
    (3) functional obsolescence
  27. aa income project for income-producing property after deducting: operating expenses, vacancy, collection.
  28. ab capital of annual net income expected to be made during rest of it's years.
    -estimating value of income producing properties.
    -Ex. apt buildings, office buildings, shopping centers.
  29. ac (cap rate)
    rate of return investor will make on an owner's investment.
    -comparing relationship of NOI and sales prices of similar properties.
  30. ad depreciation; loss of value because of functional issues.
    -caused by bad design.
  31. ae fixing property doesn't raise value enough to cover costs.
  32. af figure x gross monthly income.
    -residential rentals (1-4 units)
    -needs recent sales/ rental data from minimum of 4 similar properties.
  33. ag higher value property raises value of lower property
  34. ah value of nicer property is adversely affected by lesser quality property.
    -nicer property losses value because of crappier property.
  35. ai CMA
  36. aj law that money spent on improvements increases the income or value
  37. ak sales price/ monthly gross rent
  38. al multiplier of gross annual income.
    -used for properties with 5+ units.
    -used because commercial/ industrial properties get income from multiple sources.