Name: Homework 1

horizontal rule


horizontal rule

Question 1   Multiple Answer (1 points)
  Question: Approaches to value estimation include:

    Cost-depreciation approach
Sales-comparison approach
SWAG estimation
Income capitalization approach


Question 2   Multiple Answer (1 points)
  Question: The economic role of value and value estimation

    Improves information flow to the market
Increases the supply of property
Improves market efficiency
Increases the demand for property


Question 3   Multiple Answer (1 points)
  Question: What is appraisal?

    an estimation of the asking price of a property
a prediction of the market value of the property
a professional opinion of the cost a property
a supportable, defensible, estimate of the most probable selling price of a property


Question 4   Multiple Answer (1 points)
  Question: When may a formal appraisal not be needed in a buy/sell transaction?

    When the buyer is an appraiser but not the seller
In a very active market with many sales of very similar properties, the value of the possible increased accuracy may not exceed the cost of the appraisal. (eg. lot sales in a large popular subdivision)
When the seller is an appraiser but not the buyer
Whenever the value in use of a specific site so exceeds the asking price of the property that any delay in its purchase could be much more costly than the value of any information disclosed by the appraisal. (eg. A developer has assembled all but a small residential parcel in the middle of the planned office park development.)


Question 5   Multiple Answer (1 points)
  Question: Which of the following are decisions that might be assisted by an appraisal? (Check all that apply)

    How much to offer on a property?
How much should a property be sold for?
How much rent should be charged?
What time of year should construction be completed?
How much should a lender lend on a property?