Basic Appraisal Procedures Exam Questions and Answers

Basic Appraisal Procedures Exam Questions and Answers - Answer-An entrepreneur is taking on a development project, and by his calculations, he expects to receive a 25% return on his investment in the project. This 25% figure represents $252,000 - Answer-The subject is a 15 year old duplex that would cost $240,000 to build new today. It is in good condition and you estimate the effective age to be 10 years. Your estimate of total economic life is 50 years. Its land value is $60,000. What is its value by the cost approach? leave it as one parcel - Answer-A single parcel is valued at $450,000. Zoning allows it to be subdivided into 8 lots and it is estimated that each lot could sell for $50,000. Site development costs (sewer, grading, road, etc.) would cost $50,000. What is the highest and best use? 2-4 unit residential properties - Answer-Price per room is a common unit of comparison when appraising 96.3 - Answer-When developing an appraisal, you calculate the following GRMs for comparable properties: 94.3, 90.1, 95.6, 109.2, 84.5, 100.7, 99.9. What is the mean of the GRMs? gross income multiplier - Answer-"The relationship or ratio between the sale price or value of a property and its gross annual rental income" is the definition of direct - Answer-Building permits and worker's compensation are examples of __________costs. guaranteed - Answer-A mortgage in which a party other than the borrower assumes payment in the event of default is a(n) _____________ mortgage. conductors, insulators - Answer-Materials that transfer energy quickly are called __________ and those that transfer energy slowly are called __________. +$10,000 - Answer-In your sales grid, you made adjustments of +$5,000, +$3,500, - $2,500, + $8,000, and -$4,000. What is your net adjustment? $1,984 - Answer-A municipality assesses property at 100% of value. If a property is assessed at $155,000 and the rate per thousand is $12.80, how much are total property taxes? both general and specific data - Answer-Multiple listing services can be utilized for gathering _______________. deferred maintenance - Answer-Functional obsolescence could be caused by all of the following EXCEPT NAHB - Answer-Extensive research on current construction trends and figures is conducted by comparative-unit - Answer-The cost estimating method most commonly used by residential appraisers is the ____________ method. GLA, interior - Answer-When measuring a condominium you should calculate ____ using _______ measurements. availability of utilities - Answer-A deed could provide all of the following information about a property EXCEPT casing, bedrock - Answer-Drilled wells need to use __________ until the drilling enters ___________. Site - Answer-"Land that is improved so that it is ready to be used for a specific purpose" is the definition of 109.3 - Answer-You calculate the following gross rent multipliers for comparable properties: 121.2, 105.3, 111.2, 150.1, 108.3, 105.3, 109.8, 108.8. What is the median of the GRMs? actual - Answer-The URAR sales comparison grid requires you to enter in the _________ age of the subject property and comparables. identify, credible - Answer-The SCOPE OF WORK RULE says that in each real property appraisal assignment, the appraiser must _______ the problem to be solved, and determine and perform the scope of work necessary to develop ________ assignment results. is optional - Answer-Fannie Mae says the cost approach ____________________. client's, real property - Answer-The valuation process is a systematic procedure employed to provide the answer to a(n) _______ question abo