Property Tax Appraisal Course 102 Questions And Correct Detailed Answers (Verified Answers) Already Graded A+

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Property Tax Appraisal Course 102 Questions And Correct Detailed Answers (Verified Answers) Already Graded A+

• How do cost, price, and value differ?

• Correct Answer: Cost refers to the amount of money, time, and labor spent to acquire a property. Price is the amount a property was purchased for. Value is what the property would probably sell for on a given date.

• Define Eminent Domain.

• Correct Answer: Eminent domain is the right of the government to take a person's property for public use if the property owner is paid.

• What are the 2 major categories of property?

• Correct Answer:

• Real property- land and structures permanently fixed to the land
• Personal property- anything that is not real property
• What are the differences among a fee simple estate, a life estate, and a leasehold?

• Correct Answer:

• Fee Simple is the full bundle of rights
• Life estate gives one person part of the bundle, but ownership will pass to a

different person on the death of the life tenant

• Leasehold gives use and enter/leave to a tenant until the termination of the

lease

• For appraisers, how does the meaning of a property differ from the meaning of

property?

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• Correct Answer: Property is a broad term expressing the relationship between persons and their rights in and to their possessions. A property refers to the unit to be valued by the appraiser.

• Define Police Power.

• Correct Answer: Police Power enables government to enforce laws to regulate uses of property.

• What is the difference between value in use and value in exchange?

• Correct Answer:

• Value in use refers to the value to a business
• Value in exchange refers to the value the item could command if sold or

traded for money or other items

• What are the 6 rights in the Bundle of Rights (SLUGER)?

• Correct Answer: Sell, Lease, Use, Give Away, Enter/Leave, Refuse to exercise.

• List several types of private restriction that may limit the exercise of the bundle of

rights.

• Correct Answer:

• Rights of Co-Owners
• Covenants and Restrictions
• Subdivision and Condo Restrictions
• Easements, rights of way, leases
• Liens and judgements
• List 4 types of governmental restrictions that may limit the exercise of the bundle

of rights (PETE).

• Correct Answer: Police Power, Escheat, Taxation, Eminent Domain.

• What is the definition of Market Value (CRANK)?

• Correct Answer:

• Cash
• Reasonable time on market

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• Arms length transaction
• Neither party takes advantage
• Knowledge is equal
• What is Change?

• Correct Answer: The value of property is constantly changing because the property itself, the location, available buyers, and buyers' expectations are all undergoing constant change.

• What is Supply and Demand?

• Correct Answer: Supply is inverse to price; Demand is correlative to price.

• What is Anticipation?

• Correct Answer: The value of property derived from the future benefits.

• What is Substitution?

• Correct Answer: Comparison Shopping.

• What is Contribution?

• Correct Answer: The cost that a component adds to the overall value (pool

example).

• What is Highest and Best Use?

• Correct Answer: The use that will generate the most profitable return for the property.

• Under what circumstances will an ideal use for property constitute its highest and

best use?

• Correct Answer:

• Physically possible
• Legally permissible
• Financially feasible
• Most productive in terms of return
• There is demand for the use

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• Must complement the surrounding properties rather than competing with

them

• What type of property is always appraised as if its highest and best use is its

current use?

• Correct Answer: A residence homestead.

• Define Appraisal.

• Correct Answer: An appraisal is an estimate of the value, or monetary worth, of an item of property as of a particular date.

• In which step will the appraiser define the purpose of the appraisal?

• Correct Answer: Definition of the problem.

• What are the methods used to collect data for the appraisal?

• Correct Answer:

• Research in publications
• Questionnaires and interviews
• Site inspections
• Record information on property record form
• Mass Appraisal--Development of value models
• What does the appraiser do in the reconciliation step?

• Correct Answer: Decides on the appraisal approach and selects a value.

• What constitutes the appraisal report for a property tax appraisal?

• Correct Answer: The final entries in the appraisal records for the property for the year; there may be a summary report for the reappraisal.

• List the 3 approaches to value.

• Correct Answer:

• Cost
• Comparable Sales
• Income