Real Estate Appraisal Exam 2 with
Complete Solutions
sales price - ANS-value of real estate can be determined by analyzing the ______ of
similar properties
substitutions - ANS-having other property options if they cannot get the first comparison
grant deed - ANS-used in some states and jurisdictions for the sale or other transfer of
real property from one person or entity to another person or entity. Each party
transferring an interest in the property, or "grantor", is required to sign it.
central tendency - ANS-the numeric value that is suggested as typical, with regard to
size, price other variable studied
linear&multiple regression - ANS-can calculate relationships between property features
and property prices
sales comparison approach - ANS-value of real estate can be determined by analyzing
the sales prices of similar properties
direct comparison method - ANS-simplest method, used when properties are very
similar
seller financing - ANS-not a bank loan, direct from seller, more interest; seller can take
property back
assumed financing - ANS-borrow money at a cheap rate, if rates go up, sales would
occur because of loan assumptions
seller-paid points - ANS-are lump sum payments (or finance charges) made by the
seller to the buyer's lender to reduce the cost of the loan to the buyer. One point is
equal to 1% of the loan amount.
comparibles - ANS-always adjust the _____________, never the subject property
total property - ANS-price of similar units, may involve ranking the sales
physical units - ANS-price p sq ft, price p acre, price per room, price per dwelling
, economic units - ANS-price p build able dwelling unit, price p developable building area,
gross income multipliers
transactional adjustments - ANS-conditions of sale, financing terms, market conditions
property adjustments - ANS-location, physical characteristics, legal characteristics, use,
non-realty items
computer software program - ANS-analyzes data in specified area or neighborhood
land value estimates - ANS-sale and purchase, development, financing, land leasing,
government actions, agriculture, court actions
site value estimates - ANS-allocation for tax purposes, ad valorem taxes, income taxes
cost approach - ANS-land+building=total value
income approach - ANS-certain techniques require allocated site value
sales comparison approach - ANS-estimate of land value is often needed for
comparison techniques
highest and best use - ANS-required by USPAP when the assignment is market value,
the reasonable and profitable use that will support the highest land value as the date of
value
market method - ANS-use when vacant land sales are not available, to appraise shared
land interests
allocation - ANS-in some jurisdictions, the _________________ between land and
improvements by the county tax assessor may give the appraiser some guidance,
land development method - ANS-used to establish value of land ready to be subdivided,
used when no comparable sales are available or detailed analysis of project is desired
land residual method - ANS-version of income approach, based on the principle of
surplus productivity, used when no comparable sales are available,
comparability criteria - ANS-competitive property, market transaction, recent in time of
sale
market comparison techniques - ANS-comparability criteria, sales/listings of subject,
data needed, sales history, data sources, verification
reproduction cost estimates - ANS-the cost of duplicate or nearly identical structure,
every physical component must be included
Complete Solutions
sales price - ANS-value of real estate can be determined by analyzing the ______ of
similar properties
substitutions - ANS-having other property options if they cannot get the first comparison
grant deed - ANS-used in some states and jurisdictions for the sale or other transfer of
real property from one person or entity to another person or entity. Each party
transferring an interest in the property, or "grantor", is required to sign it.
central tendency - ANS-the numeric value that is suggested as typical, with regard to
size, price other variable studied
linear&multiple regression - ANS-can calculate relationships between property features
and property prices
sales comparison approach - ANS-value of real estate can be determined by analyzing
the sales prices of similar properties
direct comparison method - ANS-simplest method, used when properties are very
similar
seller financing - ANS-not a bank loan, direct from seller, more interest; seller can take
property back
assumed financing - ANS-borrow money at a cheap rate, if rates go up, sales would
occur because of loan assumptions
seller-paid points - ANS-are lump sum payments (or finance charges) made by the
seller to the buyer's lender to reduce the cost of the loan to the buyer. One point is
equal to 1% of the loan amount.
comparibles - ANS-always adjust the _____________, never the subject property
total property - ANS-price of similar units, may involve ranking the sales
physical units - ANS-price p sq ft, price p acre, price per room, price per dwelling
, economic units - ANS-price p build able dwelling unit, price p developable building area,
gross income multipliers
transactional adjustments - ANS-conditions of sale, financing terms, market conditions
property adjustments - ANS-location, physical characteristics, legal characteristics, use,
non-realty items
computer software program - ANS-analyzes data in specified area or neighborhood
land value estimates - ANS-sale and purchase, development, financing, land leasing,
government actions, agriculture, court actions
site value estimates - ANS-allocation for tax purposes, ad valorem taxes, income taxes
cost approach - ANS-land+building=total value
income approach - ANS-certain techniques require allocated site value
sales comparison approach - ANS-estimate of land value is often needed for
comparison techniques
highest and best use - ANS-required by USPAP when the assignment is market value,
the reasonable and profitable use that will support the highest land value as the date of
value
market method - ANS-use when vacant land sales are not available, to appraise shared
land interests
allocation - ANS-in some jurisdictions, the _________________ between land and
improvements by the county tax assessor may give the appraiser some guidance,
land development method - ANS-used to establish value of land ready to be subdivided,
used when no comparable sales are available or detailed analysis of project is desired
land residual method - ANS-version of income approach, based on the principle of
surplus productivity, used when no comparable sales are available,
comparability criteria - ANS-competitive property, market transaction, recent in time of
sale
market comparison techniques - ANS-comparability criteria, sales/listings of subject,
data needed, sales history, data sources, verification
reproduction cost estimates - ANS-the cost of duplicate or nearly identical structure,
every physical component must be included
