FREE Arkansas Real Estate License Property Valuation and Appraisal Questions and Answers Flashcards
6 cards from real Arkansas Real Estate License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 FREE Arkansas Real Estate License Property Valuation and Appraisal Questions and Answers flashcards as text
An Arkansas appraiser adjusts comparable sale prices in the sales comparison approach. If a comparable property has a feature the subject property lacks, how is the adjustment made?
Answer: Subtract the value of the feature from the comparable's sale price
When a comparable has a superior feature the subject lacks, you subtract that feature's value from the comparable's price to make it equivalent to the subject.
What does the Gross Rent Multiplier (GRM) method require to estimate the value of a residential rental property in Arkansas?
Answer: Monthly gross rent and a multiplier derived from comparable sales
The GRM method multiplies the monthly gross rent by a factor derived from recent sales of similar rental properties to estimate value.
In Arkansas, what is the role of the Arkansas Appraiser Licensing and Certification Board?
Answer: To regulate and license real estate appraisers in the state
The Arkansas Appraiser Licensing and Certification Board oversees the licensing, certification, and regulation of real estate appraisers in the state.
Which principle of value states that a property's value is influenced by the expectation of future benefits from ownership?
Answer: Anticipation
The principle of anticipation holds that value is created by the expectation of benefits to be received in the future, such as income or appreciation.
When appraising a property in Arkansas, what does the term 'highest and best use' refer to?
Answer: The legally permissible, physically possible, financially feasible, and maximally productive use of the property
Highest and best use is the reasonably probable use that is legally permissible, physically possible, financially feasible, and maximally productive.
An Arkansas property has a net operating income of $48,000 and is valued at $600,000 using the income approach. What is the capitalization rate?
Answer: 8%
The capitalization rate is calculated by dividing net operating income ($48,000) by the property value ($600,000), which equals 8%.