Basic Appraisal - Self-Study Training Questions with Complete Solutions

Basic Appraisal - Self-Study Training Questions with Complete Solutions Appraisal is ........ p.1 the process of estimating the value of specific property at a stated time and place. Which prerequisites are required for goods to have value? pgs 1-2 Capacity for private ownership, Demand or effective purchasing power, scarcity, utility Market value, the price that a property will bring when it is sold in a market, is determined only by the demand for the property. T/F pg 3 False When the quantity demanded and the quantity supplied are equal, there is a state of balance known as________________________ equilibrium If the market demanded increases, the price will________________ Increase Use value is the value a specific property has for a specific use. T/F True Expenditures for labor materials are known as ________________ Direct Cost It is the amount actually paid for a property in a particular transaction Price It is the expenditure required to produce property Cost The expenditure for labor and materials, sometimes called hard costs, or brick and mortar costs. Direct Cost The expenditure for items other than labor and materials Indirect Cost The all-inclusive cost necessary to develop the property Development Cost Value is the present worth of future benefits. T/F True What types of value may a property tax appraiser encounter? [Mark all that apply] Assessed Value Insurable Value Going-Concern Value Book Value Economic Value All of the above All of the above Which of the following is true regarding the concept of value in the Revenue and taxation code section 110? [Mark all that apply] 1) All property is taxable and shall be assessed at different percentages of fair market value 2) Property must be exposed for sale in the open market 3) Both the buyer and seller must have knowledge of all the uses and purposes of the property 4) Neither the buyer nor the seller should be able to take advantage of the exigencies of the other 5) All of the above 2,3,4 Section 110 establishes a rebuttable presumption that "full cash value" or "fair market value" shall be the actual purchase price if the terms were negotiated under specified conditions reflecting an open market transaction. T/F Tru