Property Valuation and Appraisal Flashcards
6 cards from real CA REAL ESTATE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Property Valuation and Appraisal flashcards as text
Which appraisal principle holds that the value of a component is measured by how much it adds to the whole property's worth?
Answer: Principle of contribution
The principle of contribution measures a component's value by the amount it adds to the total property value.
Which term describes the loss in value of a property due to physical wear and tear over time?
Answer: Physical deterioration
Physical deterioration is the loss in value caused by normal wear and tear, deferred maintenance, or structural damage.
The principle of anticipation states that property value is based on:
Answer: The present worth of future benefits
The principle of anticipation holds that value is created by the expectation of future benefits the property will provide.
When comparing properties in the sales comparison approach, adjustments are made to which property?
Answer: The comparable sale only
In the sales comparison approach, adjustments are made to the comparable sale to reflect differences from the subject property.
What does 'effective age' mean in the context of real estate appraisal?
Answer: The age implied by the property's condition and utility
Effective age is the age suggested by a property's physical condition and maintenance, which may differ from its actual chronological age.
Which of the following is NOT one of the four forces that influence real estate value?
Answer: Technological factors
The four forces influencing real estate value are social, economic, governmental, and environmental (physical) factors — not technological.