BASIC APPRAISAL PROCEDURES FINAL EXAM QUESTIONS
WITH COMPLETE SOLUTION
Replacement cost
If an appraiser uses a cost manual to estimate cost new for a property, the result is
Qualitative analysis
Ranking analysis is a form of
Soft costs
Another name for indirect costs
Direct costs
Building permits and workers compensation are examples of
Relevant characteristics
A judgement made by the appraiser
Manufactured home
A home that has a permanent steel chassis, wheels and axles
General data
Mortgage rates, unemployment rates, property tax rates
Land adjustments
Size shape topography
Comparable sales
In the sales comparison approach we always adjust the
Scope of work
The amount and type of information researched and the analysis applied in an
assignment
Cost per square foot
Divide sale price by square foot size
Conditions of sale
In the sales comp approach, comparable properties can be adjusted for differences in
motivations of either the buyer or a seller in a transaction
Report the final opinion of value
The last step in the valuation process
At least 12"
Footings need to be below average frost penetration levels
Manufactured home
A factory house built in accordance with the HUD code
Conductors
Materials that transfer energy quickly
Licensed residential appraiser
Non complex 1-4 unit residential properties less than $1 million and complex 1-4 unit
residential properties less than $250,000
Short lived depreciation
Years old (age) divided by life expectancy equals depreciation. Replacement cost new
times depreciation rate equals dollar amount of depreciation
Extraction method of site valuation
, A method of estimating land value in which the depreciated cost of the improvements on
the improved property is calculated and deducted from the total sale price to arrive at an
estimated sale price for the land
Credible results
USPAP says a cost approach must be developed when it is necessary for
Property tax assessment
Assessed price (134 (thousands)) times (x) rate per thousand ($9.55) equals (=) total
property taxes ($1,279.70)
School building
An example of special purpose property
FEMA
prepares flood maps
Sales comparison approach
The most commonly used approach for valuing sites
GRMs
Derived by dividing sale price by the property's gross monthly unfurnished market rent
Parging
A cement mixture that is applied to the exterior of a concrete block foundation wall
Extraction method to Find land value
Sale price-reproduction cost=difference reproduction cost x depreciation + or -
difference (when reproduction cost is less than sale price add difference when
reproduction cost is more than sale price subtract difference
Cost approach to property value
Reproduction or replacement cost new minus depreciation, plus site value equals
Replacement cost
If a cost manual is used the result is
actual age
The URAR sales comparison grid requires you to enter for subject property and
comparables
Dept of Transportation
Obtain traffic counts from
Determine highest and best use
Physically possible, economically feasible, and legally permitted
Front foot
Waterfront property is usually valued on a basis of price per
Substitution
The basic principle underlying the cost approach is the principle of
Prospective appraisal
An appraisal with an effective date at some point in the future is called
Specific data sources
Tax maps, deeds, assessor's records
Cash equivalency
A comparable property sells with atypical financing adjustments need to be made for
Unit cost
Sale price-site value-site improvements / GLA
Principle of contribution
WITH COMPLETE SOLUTION
Replacement cost
If an appraiser uses a cost manual to estimate cost new for a property, the result is
Qualitative analysis
Ranking analysis is a form of
Soft costs
Another name for indirect costs
Direct costs
Building permits and workers compensation are examples of
Relevant characteristics
A judgement made by the appraiser
Manufactured home
A home that has a permanent steel chassis, wheels and axles
General data
Mortgage rates, unemployment rates, property tax rates
Land adjustments
Size shape topography
Comparable sales
In the sales comparison approach we always adjust the
Scope of work
The amount and type of information researched and the analysis applied in an
assignment
Cost per square foot
Divide sale price by square foot size
Conditions of sale
In the sales comp approach, comparable properties can be adjusted for differences in
motivations of either the buyer or a seller in a transaction
Report the final opinion of value
The last step in the valuation process
At least 12"
Footings need to be below average frost penetration levels
Manufactured home
A factory house built in accordance with the HUD code
Conductors
Materials that transfer energy quickly
Licensed residential appraiser
Non complex 1-4 unit residential properties less than $1 million and complex 1-4 unit
residential properties less than $250,000
Short lived depreciation
Years old (age) divided by life expectancy equals depreciation. Replacement cost new
times depreciation rate equals dollar amount of depreciation
Extraction method of site valuation
, A method of estimating land value in which the depreciated cost of the improvements on
the improved property is calculated and deducted from the total sale price to arrive at an
estimated sale price for the land
Credible results
USPAP says a cost approach must be developed when it is necessary for
Property tax assessment
Assessed price (134 (thousands)) times (x) rate per thousand ($9.55) equals (=) total
property taxes ($1,279.70)
School building
An example of special purpose property
FEMA
prepares flood maps
Sales comparison approach
The most commonly used approach for valuing sites
GRMs
Derived by dividing sale price by the property's gross monthly unfurnished market rent
Parging
A cement mixture that is applied to the exterior of a concrete block foundation wall
Extraction method to Find land value
Sale price-reproduction cost=difference reproduction cost x depreciation + or -
difference (when reproduction cost is less than sale price add difference when
reproduction cost is more than sale price subtract difference
Cost approach to property value
Reproduction or replacement cost new minus depreciation, plus site value equals
Replacement cost
If a cost manual is used the result is
actual age
The URAR sales comparison grid requires you to enter for subject property and
comparables
Dept of Transportation
Obtain traffic counts from
Determine highest and best use
Physically possible, economically feasible, and legally permitted
Front foot
Waterfront property is usually valued on a basis of price per
Substitution
The basic principle underlying the cost approach is the principle of
Prospective appraisal
An appraisal with an effective date at some point in the future is called
Specific data sources
Tax maps, deeds, assessor's records
Cash equivalency
A comparable property sells with atypical financing adjustments need to be made for
Unit cost
Sale price-site value-site improvements / GLA
Principle of contribution
