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To improve the quality of appraising, many professional appraisal groups require
members to follow a code of ethics. Such codes typically require the appraiser to
a. Have no undisclosed financial interest in the property appraised
b. Keep the value conclusion confidential from everyone except the client
c. Be able to support the value conclusion
d. All of the above
As most often used in appraisal practice, market value has several vital criteria. Which
of the following is not included?
a. A good location
b. The most probable price
c. Open market exposure
d. Informed parties
The only market transactions requiring appraisals are the purchase and sale of real
estate.
Many city, county, state and federal agencies have salaried appraisers on their staffs.
The broad forces affecting value are physical, social, economic and political in nature.
The principle of substitution is basic to all three approaches to value.
The effective age of a structure is defined as its relative age considering its condition
and marketability.
Data resources on the internet provide general data on the economy and regulatory
information of use to the appraiser.
In income property appraisal, the gross income multiplier is often considered part of the
sales comparison approach.
When the net income is divided by the sales price to derive a capitalization rate, the
band of investment method is being used.
The cost approach is normally given more weight in the appraisal of old and
substantially obsolete buildings.
A sale between the property owner and a tenant can be assumed to be an open market
transaction.
In the sales comparison approach, the appraiser adjusts comparable sales by adding or
subtracting amounts from their sale price to "improve" their comparability.
Areas of public control requiring appraisals include eminent domain and taxation.
Replacement cost and reproduction cost are the same.
The cost estimates used in appraisals should reflect cost levels on the date of value,
instead of actual or historic costs.
A comparable sale should be adjusted for the terms of sale when the sale involves
unique financing that offers an advantage to the buyer.
The agents of production are responsible for both tangible and intangible benefits of
real estate.
Agencies of FIRREA are exempt from USPAP.
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