question archive What type of appraisal is the most comprehensive? Restricted use Self-contained Summary Which of the following is not a purpose of an appraisal? To help stakeholders identify property-specific risks and red flags To help stakeholders compare properties To estimate a fair and reasonable market value for the property Real estate appraisal formats are designed to give credit analysts and account managers… Key information about stakeholder credentials and previous sale/transaction history Detailed insights on property-specific value and comparable properties Guidance with regards to deal structure and underwriting The intended user of a real estate appraisal is most commonly
What type of appraisal is the most comprehensive? Restricted use Self-contained Summary Which of the following is not a purpose of an appraisal? To help stakeholders identify property-specific risks and red flags To help stakeholders compare properties To estimate a fair and reasonable market value for the property Real estate appraisal formats are designed to give credit analysts and account managers… Key information about stakeholder credentials and previous sale/transaction history Detailed insights on property-specific value and comparable properties Guidance with regards to deal structure and underwriting The intended user of a real estate appraisal is most commonly
Subject:FinancePrice: Bought3
- What type of appraisal is the most comprehensive?
Restricted use
Self-contained
Summary
- Which of the following is not a purpose of an appraisal?
To help stakeholders identify property-specific risks and red flags
To help stakeholders compare properties
To estimate a fair and reasonable market value for the property
- Real estate appraisal formats are designed to give credit analysts and account managers…
Key information about stakeholder credentials and previous sale/transaction history
Detailed insights on property-specific value and comparable properties
Guidance with regards to deal structure and underwriting
- The intended user of a real estate appraisal is most commonly...
A mutually agreed upon advisor for the transaction agreed upon by all stakeholders
An individual or corporation
A prospective buyer or their agent
- A prospective appraisal has a completion date…
In the present and an effective date in the present based on current conditions
In the present and an effective date in the future based on pending changes
In the present and an effective date in the future based on new information that has come to light
- If the lender is not expressly listed as the client in an appraisal, additional correspondence is required in the form of a...
Letter of reliance
Letter of transmittal
Notarized letter
- The bulk of the site-specific information can be found in what section of the appraisal:
Addenda/Appendices
Property Valuation
Property Description
- The important elements in the terms of reference include everything except...
The valid period of the appraisal
The legal description of the lot
The scope of the appraisal
- In a leasehold estate, which of the following is true
Rights to use the land expire on a predetermined date
Commercial mortgages are generally issued against these
The owner is permitted to divide the estate
- What is a leading indicator that a property is not currently achieving its highest and best use?
Vacant property commands a significant premium to its peer group on the open market
Cap rate is high relative to its geographic and structural equivalents
Net operating income generated from the property is lower than peers
- The cost approach to valuation is based on the concept of...
Expected appreciation of the subject property
Expected useful life of the property
Replacement cost
- The income approach to valuation assumes that the value of an income-producing property is equal to…
The most accurate valuation based on actual historical financial information
Consistently higher property valuation
A slightly more speculative present value
- Of the two forms of the income approach to valuation, the DCF is considered to produce a…
Consistently higher property valuation
The most accurate valuation based on actual historical financial information
A slightly more speculative present value
- You should ensure there is a signed certificate which expressly outlines all of the following except:
Conclusions limited only by reported assumptions and limiting conditions
The appraiser has personally inspected the property
Compensation is not contingent on the report
Disclaimer of limited liability for the valuation
- A form of the income approach to valuation is the discounted cash flow (‘DCF’). In what situation may a DCF be used?
Near-term future tenancy is a non-issue as the tenant is in a perpetual lease
When the property is generating recurring revenue
When considerable building upgrades are pending
