Arizona Real Estate License Property Valuation and Appraisal 2

Question 1

In Arizona, the 'sales comparison approach' to value relies primarily on:

Accepted Answer

Recent sales of similar nearby properties

Answer

The sales comparison approach bases value on recent sales of comparable properties in the same market area, adjusted for differences.

Question 2

What is 'gross rent multiplier' (GRM) used to estimate?

Accepted Answer

The value of income-producing property using gross rental income

Answer

The GRM estimates property value by multiplying gross annual or monthly rental income by a multiplier derived from comparable sales.

Question 3

Which Arizona agency oversees the licensing of real property appraisers?

Accepted Answer

Arizona Board of Appraisal

Answer

The Arizona Board of Appraisal is the state agency responsible for licensing and regulating real property appraisers in Arizona.

Question 4

What is 'functional obsolescence' in real estate appraisal?

Accepted Answer

Value loss due to an outdated or poor design feature within the property

Answer

Functional obsolescence is a loss in value caused by an outmoded or inadequate design feature within the property itself, such as a home with only one bathroom.

Question 5

An appraiser is estimating the value of an Arizona apartment complex. Which approach would typically be given the most weight?

Accepted Answer

Income capitalization approach

Answer

For income-producing properties like apartment complexes, the income capitalization approach is typically given the most weight because buyers focus on the income the property generates.

Arizona Real Estate License Practice Test

Arizona Real Estate License Practice Test

Arizona Real Estate License Property Valuation and Appraisal 2