16. TEST / Real Estate Appraisal

The first step in an appraisal is.

Define the problem

market value is defined by all EXEPT:

The consideration of the price for which the property was last sold

The decision to convert a two-family residential home ito a commercial office, housing a real estate firm, and an insurance company is an example of what appraisal principle?

Highest and best use

Which BEST describes the principle that a home maintains its highest value by benign in a neighborhood with similar type housing?

Conformity

Which principle is the market data approach based on?

Substitution

External obsolescence in a property in generally;

A type of depreciation that is incurable

When an appraiser uses the phrase "effective age" he is referring to:

The age of property based on its condition

A man owns a building with 6 apartments. Three of the 6 apartments net him $200 per month, and the other three net him $150 per month. For what amount should he sell the building to net the same profit if he invest his money in a 9% saving account.

) $140.000

The gross rent multiplier uses:

Sale price and monthly rental rates

Peeling paint on a home is an example of:

Physical deterioration

the 3 distinct boards of TAF are

- Appraisal qualification board
- Appraisal standarts board
- Appraisal practices board