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Anticipation is a principle. The elements of value are Demand, Utility, Scarcity and Transferability (DUST) . Notice it is not unusual to recognize answers for questions embedded in other questions and answer selections.
John is considering an extensive modernization program for an older apartment building he owns. His decision should give most emphasis to
effect on the net income.
The relationship between the thing desired and the potential purchaser could be described as
The loan-to-value ratio (LTV) is best described as
the ratio of the loan to the appraised value of the property.
To depreciate real estate, it needs to be
An apartment building produces a monthly rent of $16,000. A similar property with monthly rents of $21,000 recently sold for $2,940,000. Using this as the only data, the appraiser would say that the first apartment building is worth
When an appraiser relies on the principle of substitution, they assume that one property may be substituted for another in terms of all of the below, except
Appraisers attempt to estimate the value of real estate. The value is
based on an analysis of facts as of a specified date.
The gross rent multiplier (GRM) is calculated by dividing
d. sales price by gross monthly rents.
An appraiser describes “replacement cost” as
the current cost to build a structure of similar utility using modern methods and materials.
Which of the following is not a part of the cost approach appraisal method?
The ultimate test to determine the functional utility of a property is the
When an appraiser values a property under the cost approach, they add the value of the site to the depreciated cost new of improvements. If the value of a site is $150,000, the cost to build a new house is $300,000, the cost to build a new garage is$75,000, and the value of site improvements such as landscaping and the driveway are $75,000, what is the final value of the property under the cost approach when a 20% physical depreciation factor is applied?
The period for which a property can show a return attributable to the improvements is known as the property’s