Valuation & Appraisal – Florida Real Estate Salesperson Exam
Master the 27 most-tested concepts in real estate valuation and appraisal for the Florida Salesperson Exam. Covers the three approaches to value, key appraisal principles, terminology, and the appraisal process used by licensed professionals in Florida.
Or subscribe for $9.99/mo and study anything
Study Modes
Preview Questions
Question 1
What is the definition of 'market value' as used in real estate appraisal?
Answer
Market value is the most probable price a property should bring in a competitive, open market under fair sale conditions, with both buyer and seller acting knowledgeably and without undue pressure.
Question 2
What is the difference between an appraisal and a comparative market analysis (CMA)?
Answer
An appraisal is a formal, written opinion of value performed by a licensed or certified appraiser, while a CMA is an informal estimate of value prepared by a real estate licensee to help set a listing or purchase price.
Question 3
Which federal law requires licensed or certified appraisers for federally related transactions?
Answer
FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act of 1989) requires that federally related real estate transactions use licensed or certified appraisers.
Question 4
What does the term 'highest and best use' mean in appraisal?
Answer
Highest and best use is the legal, physically possible, financially feasible, and maximally productive use of a property that produces the greatest value. It is the foundation of every appraisal.
Question 5
What is 'value in use' as opposed to 'value in exchange'?
Answer
Value in use is the subjective value a property has to a specific user based on its utility to them, while value in exchange (market value) is the objective price the property would command in the open market.
Showing 5 of 28 cards. Unlock the full deck →
Related Study Decks
Fair Housing Laws – Florida Real Estate Salesperson Exam
22 cards
Florida Real Estate Contracts & Closings
33 cards
Florida Real Estate Exam: Financing & Mortgages
30 cards
Florida Real Estate Law – Salesperson Exam Prep
30 cards
Florida Real Estate License Requirements
25 cards
Florida Real Estate Salesperson Exam — Complete Bundle
0 cards
Ready to pass your exam?
Join thousands of students using Prepdex to study smarter, not harder.
Buy This Deck — $12.99Or subscribe for $9.99/mo and study anything