Basic Appraisal Principles Study Guide

Basic Appraisal Principles Study Guide

• factors of value

(Ans-

• Utility
• Scarcity
• Desire
• Effective Purchasing Power

• Factors of Production

(Ans-

• Capital
• Entrepreneurial Coordination
• Land
• Labor

Forces that influence real property markets (Ans-

• Social Forces
• Economic circumstances
• Governmental controls and regulations
• Environmental Conditions

Life Cycle of a Market Area (Ans-

• Growth
• Stability
• Decline
• Revitalization

Bundle of Rights (Ans-

• Right to sell
• Right to lease 1 / 2

• Right to occupy
• Right to mortgage
• Right to give it away

• Powers of Government

(Ans-

• Police Power
• Eminent domain
• Taxation
• Escheat

• Forms of Ownership

(Ans-

• Community Property
• Joint Tenancy
• Tenancy by the entirety
• Tenancy in common

community property (Ans- System of ownership; each spouse has an equal interest in property

acquired during marriage: separate property is that acquired before

marriage

USPAP (Ans- current standards of the appraisal profession

Utility (Ans- the ability of a product to satisfy a human want, need or desire.

scarcity (Ans- the present or anticipated under supply of an item relative to the demand for it

desire (Ans- a purchasers wish for an item to satisfy human needs

• / 2