The sales comparison, cost, and income approaches to property valuation tested on real estate appraisal licensing exams.
39 cards · basic cards · AI-written, checked twice. Edit anything.
- What is the primary method used to value owner-occupied residential properties?
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Sales Comparison Approach- Name the three traditional approaches to property valuation
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Sales Comparison, Cost, and Income approaches- In the Sales Comparison Approach, what are properties that are recently sold used for?
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To establish a baseline for comparison to the subject property- What is an adjustment in the Sales Comparison Approach?
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A value change made to a comparable property's price to make it more similar to the subject property- When should a negative adjustment be applied to a comparable property?
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When the comparable has a feature that the subject property lacks- What does DOM stand for in real estate appraisal?
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Days on Market- What is price per square foot used for?
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A direct market indicator to compare property values- What is the Gross Rent Multiplier?
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A ratio of property price to gross rental income, used to value income-producing properties- When is the Cost Approach most commonly used?
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For new construction or special-use properties with limited comparable sales- What are the three components of the Cost Approach?
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Land value, building cost, and accrued depreciation- What is the difference between replacement cost and reproduction cost?
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Reproduction cost uses exact original materials and methods; replacement cost uses modern equivalents- Define accrued depreciation
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The loss in value from new condition due to physical deterioration, functional obsolescence, or external obsolescence- What is physical deterioration?
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Loss of value due to wear and tear, decay, or damage to the building structure and components- What is functional obsolescence?
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Loss of value caused by design defects, poor layout, or outdated features that reduce utility- What is external obsolescence?
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Loss of value caused by factors outside the property, such as neighborhood decline or zoning changes
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