Basic Appraisal Principles Study Guide Questions With Complete Solutions

Basic Appraisal Principles Study Guide Questions With
Complete Solutions

3 approaches to estimating value Correct Answers - cost
- market (sales comparison)
- income

3 types of depreciation Correct Answers - physical
- functional
- external

4 Factors of Production Correct Answers - Capital
- Entrepreneurial Coordination
- Land
- Labor

4 factors of value Correct Answers - Utility
- Scarcity
- Desire
- Effective Purchasing Power

4 Forms of Ownership Correct Answers - Community Property
- Joint Tenancy
- Tenancy by the entirety
- Tenancy in common

4 Powers of Government Correct Answers - Police Power
- Eminent domain
- Taxation
- Escheat

, Anticipation Correct Answers the perception that value is
created by the expectation of benefits to be derived in the future

Appraisal Step 1 Correct Answers Identify the problem

Appraisal Step 2 Correct Answers Scope Of Work

Balance Correct Answers the principle that real property value
is created and sustained when contrasting, opposing, or
interacting elements are in a state of equilibrium

Bundle of Rights Correct Answers - Right to sell
- Right to lease
- Right to occupy
- Right to mortgage
- Right to give it away

Central business district (CBD) Correct Answers the core or
downtown area of a city where the major retail, financial,
governmental, professional, recreational, and service activities
of the community are concentrated.

CERCLA Correct Answers Comprehensive Environmental
Response, Compensation, and Liability Act (addresses what to
do with closed or abandoned waste sites)
see super fund

Change Correct Answers the result of the cause and effect
relationship among the forces that influence real property value