Appraisal Questions and Answers Already Passed

Appraisal Questions and Answers Already Passed is desire an essential element of value? no a residential parcel of property is rezoned commercial. that happens to the value of that parcel?> it increases when appraising property in a competitive market, what is market value? the most probable price a property should bring what is the purpose of an appraisal? to determine the market value of the property what factor had the greatest effect on a properties market value? location will labor force affect the supply of real estate? yes when doing a neighborhood analysis, what is an appraiser most likely to be concerned about? economic obsolescense what is the first step in the appraisal process? define the problem or purpose is the racial composition in an area a factor in appraisal no what is appraisal an opinion or estimate of a property's market value what is the final process in the apraisal process report the final value estimate the economic life of a property deals primarily with the property's what? profitability a form of depreciation caused by ordinary wear and tear is called what? physical deterioration when using the cost approach to estimate the value of property what would most likely be used? the estimated current cost of constructing the inprovement less depreciation what is external obsolescense caused by? problems outside the property boundary lines and is normally incurrable A house with outdated plumbing, narrow hallways and poor floor plan would most likely suffer from what? functional obselescence a well maintained house in a deteriorating neighborhood of run down homes would most likely suffer from what? external obsolescence an appraiser comparing the effective age of a property with the chronological (actual) age would usually consider what about effective and and chronological age? effective age is generally less than chronological age a split level house has a rotten subfloor. this is an example of what? physical deterioration a new airport is built near an existing residential subdivision. the loss of value caused by the noise would be considered what? external obsolescence what is a loss caused by something being outdated? functional obsolescence in determining the replacement cost of a commercial warehouse what would an appraiser be most concerned with? cubic footage of the improvement when appraising a vacant lot an appraiser would likely consider what? highest and best use is economic obsolescence a type of depreciation? yes when appraising a vacant lot would an appraiser use the replacement cost? no a builder constructed a new house using inferior material. what type of depreciation will be accelerated? physical deterioration a competitive market analysis is based on what principle? the sales price of the subject property is best estimated by recent sales of similar properties a salesperson doing a competitive market analysis (CMA) to arrive at a listing price for a property would be least concerned with what the original price paid by the owner for the property in doing a CMA you find a comp that sold recently because of a divorce. it sold for considerably less that other properties in the area. would this be a good comp to use? no, becuase of the divorce it was not an arms lenght transaction in the sales comparison (market data) approach would a recnetly sold comp or the capitalization rate be more important? recently sold comp when doing the sales comparison approach, the comp has a fireplace worth $2,500. the subject property does not have a fire place. what adjustment would you make> the comp should be adjusted downwards will property taxes on a property be considered when doing a sales comparison (market date) approach? no when using the income approach to arrive at the estimate of the property's value the capitalization rate would be divided into what? the replaement cost when estimating the value of a property using the income approach, would debt services be considered an operating expense? no how would the gross rent multiplier (GRM) on a residential property be determined dividing the sales price by the monthly rental rate a capitalization rate would most likely be used when appraising what? a shopping center you are estimating the market value of an income producing residential property. what would be the most useful when comparing the gross rental income of the subject property with the sales price of a comp? gross rent multiplier an investment property valued at $350,000 has a capitalization rate of 6%. if the capitalization rate increased to 7% and the net income remains unchange, what would hapen to the value? it would decrease what is the final step in the valuation process in which the various appraisal approaches are weighed ato arrive at a final value estimate? reconcilliation in the appraisal of churches, schools, and other special purpose properties which method is best for determining the value? cost approach when a certified general appraisr performs an appraisal of a commercial office building, the appraisal approach that would be given the most weight is what? income approach in the reconcilliation of the value estimates on vacant land, which approach would most likely be given the most consideration? sales comparison approach which apprraisal approach would most likely be used when appraising a residential property? sales comparison/market data the final value estimate when appraising a duplex house would eb determined how? reconcilliation of the apprioaches used an owner has a duplex rental house located on property zoned commercial. when appraised, the value was based on commercial use. which of the appraisal pricipals was used? highest and best use a potential buyer is considering the purchase of one of 2 similar houses. he would probably not pay more for one houes than the other based on what principle? substitution a manufacturing plant that employs 20% of the local labor force closes. large job losses were incured as a result. what would happen to house prices in the area? they would decrease the appraisal principle that a home would maintain its highest value in a neighborhood of similar homes is called what> conformity a buyer purchased a vacant land in a growth area thinking the land could be subdivided and would double in value in the next three years. this is considered what? anticipation the principle which states that most people will pay no more for a houes and lot than the cost of building a similar house on a similar lot is called substitution the upply of properties available for sale exceeds the amrkey demand. what kind of market is this? a buyers market the cost approach and sales comparison/market data approach are based on what principle substitution homes are selling for $200,000 in a residential neighborhood.l A potential buyer offered $200,000 for a similar home in the same neighborhood. the buyers offer was based on what principal? substitution what is the main purpose of a competitive market analysis? to provide an estimate of the selling price for the property what is the purpose of a market analysis to determine what purchasers have been willing to pay for himes similar to the one you are selling what is the best source of comparable when doing a market analysis? recent sales can a real estate broker refer to any of their activities as appraisals of properties? no, not unless they are a certified appraiser when doing a market analysis worksheet, what is the first step? obtain complete info on the subject property why should real estate licensees do a neighborhood analysis? it will help the agent determine an estimate of the value of the property when estimating the gross living area (GLA) of a residential property what areas would most likely be included? upstairs bedrooms with closets when listing a residential property a broker would primarily rely on what approach to establish a realistic asking price market data approach/cma