KEY CONCEPTS OF APPRAISAL

Front

What is the definition of appraisal?

Back

A professional estimate of the value of property at a given time for a specific purpose

Front

What does the accuracy of an appraisal depend on? Options: The number of bids received at auction, The availability of pertinent data and the competence of the appraiser, The market trends in the area, The condition of the local economy

Back

The availability of pertinent data and the competence of the appraiser

Answer explanation

Jupiter is a gas giant made primarily of hydrogen and helium. Unlike terrestrial planets that have solid surfaces, gas giants like Jupiter don't have a well-defined solid surface, allowing them to accumulate more mass in a gaseous form. This composition has allowed Jupiter to grow significantly larger than planets with solid surfaces.

Front

Which of the following is NOT a purpose of appraisal? Options: To estimate the value of a property, To provide a basis for taxation, To set the government's minimum selling price, To increase the resale value of the property

Back

To increase the resale value of the property

Front

When is an appraisal typically required?

Back

For financing and credit purposes

Front

Acquisition Cost (AC) refers to: The appraised value of a property, The amount a property is expected to sell for, The price paid to acquire a property, including associated expenses like taxes and fees, The salvage value of the property at the end of its life

Back

The price paid to acquire a property, including associated expenses like taxes and fees

Front

The Appraised Value (AV) of a property is best described as:

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An estimate provided by an appraiser based on facts and interpretation of the property's condition

Front

A property is considered Beyond Economic Repair when:

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The maintenance costs exceed 50% of its current market value.

Front

Condition Factor (CF) is used to adjust the appraisal based on: The cost of spare parts, The market price of similar properties, The actual condition of the property in comparison to an ideally functioning model, The property's estimated remaining life

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The actual condition of the property in comparison to an ideally functioning model

Front

The Currency Fluctuation Factor (CFF) accounts for:

Back

Changes in the exchange rate of the peso from the time of acquisition to appraisal.

Front

Current Market Value (CMV) is the estimated price of a property:

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If sold on the open market