RESIDENTIAL SALES COMPARISON UPDATED FINAL PAPER
QUESTIONS AND SOLUTIONS GUARANTEE A+
✔✔Rent Survey - ✔✔A compilation of the rents being generated (and often rent history)
in a particular market for a particular property type.
✔✔VIM - ✔✔A formula used to derive the appropriate multiplier from the transaction
data: V (sale price) / I (gross monthly rent) = M (multiplier)
✔✔Appurtenant Rights - ✔✔Rights that go with ownership of real property. They are
usually transferred with the property, but may be sold separately. This is a legal term
referring to both physical and non-physical appurtenances.
✔✔Dominant Tenement - ✔✔A property that benefits from an easement
✔✔Easement - ✔✔A right to use some part of another person's real property for a
particular purpose. It is irrevocable and creates an interest in the property.
✔✔Easement Appurtenant - ✔✔An easement that burdens one piece of land for the
benefit of another
✔✔Easement in Gross - ✔✔An easement that benefits a person instead of a particular
property; there is dominant tenant, but no no dominant tenement.
✔✔Leased Fee Interest - ✔✔Defined by the amount of contract rent over and above
market rent
✔✔Leasehold Interest - ✔✔Defined by the about of rent that is less than market rent
(amount of difference between contract and market rent).
✔✔Life Estate - ✔✔A Freehold estate that lasts only as long as a specified person lives
✔✔Life Tenant - ✔✔Some who owns a life estate; the person entitled to possession of
the property during the measuring life.
✔✔Negative Leasehold - ✔✔When contract rent is more than market rent (an
advantage to the lessor).
✔✔Positive Leasehold - ✔✔When contract rent is less that market rent (an advantage
to the lessee).
✔✔Remainderman - ✔✔The party in a life estate who is entitled to the remainder of the
property interest after the life estate is terminated.
, ✔✔Servient Tenement - ✔✔A property that is burdened by and easement
✔✔Timeshares - ✔✔Grant the right to use (or possess) a property for a specified period
of time (the right may or may not be accompanied with an ownership interest in the
property).
✔✔Opportunity cost - ✔✔the sacrifice made in acquiring property.
✔✔The six basis rights associated with property are - ✔✔Sell or trade
Lease or rent
Use
Give away
Enter or leave
Refuse to do any of these
✔✔utility, scarcity and desirability - ✔✔Elements that determine value
✔✔Highest and best use must be a____and___ use and is determined by the_____. -
✔✔legal , probable, market
✔✔A less expensive house surrounded by more expensive houses may have a higher
value than if it were surrounded by smaller houses. This demonstrates the principle of -
✔✔progression.
✔✔A built-in oven in a house is an example of a _____. A portable dishwasher is an
example of a _______. - ✔✔fixture, chattel
✔✔Some private limitations on property are: - ✔✔Co-owner's rights Leases
Deed restrictions Easements
Mortgages Liens
✔✔Define "neighborhoods" as used by the appraiser in analyzing a neighborhood or
area? - ✔✔A grouping of complementary land uses creating a separately identifiable
cohesive area within accepted boundaries within a community
✔✔The typical life cycle of a neighborhood normally consists of four distinct life stages.
They are: - ✔✔Growth, stability, decline, revitalization
✔✔Social factors such as neighborhood employment type and income levels have a
significant impact on property values
(T/F) - ✔✔True
✔✔What form neighborhood boundaries - ✔✔Natural barriers
QUESTIONS AND SOLUTIONS GUARANTEE A+
✔✔Rent Survey - ✔✔A compilation of the rents being generated (and often rent history)
in a particular market for a particular property type.
✔✔VIM - ✔✔A formula used to derive the appropriate multiplier from the transaction
data: V (sale price) / I (gross monthly rent) = M (multiplier)
✔✔Appurtenant Rights - ✔✔Rights that go with ownership of real property. They are
usually transferred with the property, but may be sold separately. This is a legal term
referring to both physical and non-physical appurtenances.
✔✔Dominant Tenement - ✔✔A property that benefits from an easement
✔✔Easement - ✔✔A right to use some part of another person's real property for a
particular purpose. It is irrevocable and creates an interest in the property.
✔✔Easement Appurtenant - ✔✔An easement that burdens one piece of land for the
benefit of another
✔✔Easement in Gross - ✔✔An easement that benefits a person instead of a particular
property; there is dominant tenant, but no no dominant tenement.
✔✔Leased Fee Interest - ✔✔Defined by the amount of contract rent over and above
market rent
✔✔Leasehold Interest - ✔✔Defined by the about of rent that is less than market rent
(amount of difference between contract and market rent).
✔✔Life Estate - ✔✔A Freehold estate that lasts only as long as a specified person lives
✔✔Life Tenant - ✔✔Some who owns a life estate; the person entitled to possession of
the property during the measuring life.
✔✔Negative Leasehold - ✔✔When contract rent is more than market rent (an
advantage to the lessor).
✔✔Positive Leasehold - ✔✔When contract rent is less that market rent (an advantage
to the lessee).
✔✔Remainderman - ✔✔The party in a life estate who is entitled to the remainder of the
property interest after the life estate is terminated.
, ✔✔Servient Tenement - ✔✔A property that is burdened by and easement
✔✔Timeshares - ✔✔Grant the right to use (or possess) a property for a specified period
of time (the right may or may not be accompanied with an ownership interest in the
property).
✔✔Opportunity cost - ✔✔the sacrifice made in acquiring property.
✔✔The six basis rights associated with property are - ✔✔Sell or trade
Lease or rent
Use
Give away
Enter or leave
Refuse to do any of these
✔✔utility, scarcity and desirability - ✔✔Elements that determine value
✔✔Highest and best use must be a____and___ use and is determined by the_____. -
✔✔legal , probable, market
✔✔A less expensive house surrounded by more expensive houses may have a higher
value than if it were surrounded by smaller houses. This demonstrates the principle of -
✔✔progression.
✔✔A built-in oven in a house is an example of a _____. A portable dishwasher is an
example of a _______. - ✔✔fixture, chattel
✔✔Some private limitations on property are: - ✔✔Co-owner's rights Leases
Deed restrictions Easements
Mortgages Liens
✔✔Define "neighborhoods" as used by the appraiser in analyzing a neighborhood or
area? - ✔✔A grouping of complementary land uses creating a separately identifiable
cohesive area within accepted boundaries within a community
✔✔The typical life cycle of a neighborhood normally consists of four distinct life stages.
They are: - ✔✔Growth, stability, decline, revitalization
✔✔Social factors such as neighborhood employment type and income levels have a
significant impact on property values
(T/F) - ✔✔True
✔✔What form neighborhood boundaries - ✔✔Natural barriers
