GA MLS 2nd half of Fundamentals questions
and answers
conformity - maximum value is created when a property is in harmony with its
surroundings
Seller's Market - The best time for producers to sell; characterized by large
demand, small supply, and high prices
Physical Obsolescence - loss in value due to aging, decay, and ordinary use;
property which has deferred maintenance
Market value of real estate - the most probable price that a property should bring
in a fair sale
Conditions of market value (5) - 1. Parties are unrelated and acting without undue
pressure
2. Parties are well informed
3. Reasonable exposure to market
4. Payment in cash or equivalent
5. Price is normal market price
,GA MLS 2nd half of Fundamentals questions
and answers
Market price - the asking, offer, or sales price of a property
The purpose of the appraisal - determine the value
4 characteristics necessary for a property value to have - S-Scarcity
T-Transferability
U-Utility
D-Demand
The first step in the appraisal process is to - State the problem
Why is neighborhood analysis important to the licensee - Can help determine
estimation of value
What is specific data in the appraisal process? - -Type and features of
improvements
-comparable properties that are similar to and competitive with the subject
property
,GA MLS 2nd half of Fundamentals questions
and answers
What is general data in the appraisal process? - -Nation, region, city and
neighborhood
-physical, economic, social and political influences that affect value and potential
What is the most important in the appraisal process? - Highest and Best use of
property
Which properties are appraisals required for? - -All properties valued at MORE
than $250,000
Stages through which a neighborhood passes: - 1. Growth
2. Stability
3. Decline
4. Renewal
Calculating the dollar value for depreciation is necessary when using which
approach to appraising: - The cost approach
, GA MLS 2nd half of Fundamentals questions
and answers
Which approach to appraisals require the value of the land to be calculated
separately from the value of improvements? - The cost approach
Basic principles that affect the value of a property in the appraisal: - -Anticipation
-Change
-Competition
-Conformity
-Contribution
-Highest and Best Use
-Increasing and Diminishing Returns
-Plottage
-Regression and Progression
-Substitution
-Supply and Demand
Economic life - The period during which property is expected to remain useful for
its original intended purpose.
Depreciation - loss of value due to any cause
and answers
conformity - maximum value is created when a property is in harmony with its
surroundings
Seller's Market - The best time for producers to sell; characterized by large
demand, small supply, and high prices
Physical Obsolescence - loss in value due to aging, decay, and ordinary use;
property which has deferred maintenance
Market value of real estate - the most probable price that a property should bring
in a fair sale
Conditions of market value (5) - 1. Parties are unrelated and acting without undue
pressure
2. Parties are well informed
3. Reasonable exposure to market
4. Payment in cash or equivalent
5. Price is normal market price
,GA MLS 2nd half of Fundamentals questions
and answers
Market price - the asking, offer, or sales price of a property
The purpose of the appraisal - determine the value
4 characteristics necessary for a property value to have - S-Scarcity
T-Transferability
U-Utility
D-Demand
The first step in the appraisal process is to - State the problem
Why is neighborhood analysis important to the licensee - Can help determine
estimation of value
What is specific data in the appraisal process? - -Type and features of
improvements
-comparable properties that are similar to and competitive with the subject
property
,GA MLS 2nd half of Fundamentals questions
and answers
What is general data in the appraisal process? - -Nation, region, city and
neighborhood
-physical, economic, social and political influences that affect value and potential
What is the most important in the appraisal process? - Highest and Best use of
property
Which properties are appraisals required for? - -All properties valued at MORE
than $250,000
Stages through which a neighborhood passes: - 1. Growth
2. Stability
3. Decline
4. Renewal
Calculating the dollar value for depreciation is necessary when using which
approach to appraising: - The cost approach
, GA MLS 2nd half of Fundamentals questions
and answers
Which approach to appraisals require the value of the land to be calculated
separately from the value of improvements? - The cost approach
Basic principles that affect the value of a property in the appraisal: - -Anticipation
-Change
-Competition
-Conformity
-Contribution
-Highest and Best Use
-Increasing and Diminishing Returns
-Plottage
-Regression and Progression
-Substitution
-Supply and Demand
Economic life - The period during which property is expected to remain useful for
its original intended purpose.
Depreciation - loss of value due to any cause
