TEXAS SAE: REAL ESTATE APPRAISAL
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1. Which two terms are synonymous and are Economic rent, market rent
defined as the amount of rent typical for
properties that are comparable to the sub-
ject property?
2. Which of the following properties would you Q1, C1
expect to appraise highest?
3. There are many advantages to holding prop- Avoid probate
erty within a trust. One of the most impor-
tant advantages is that some trusts ______.
4. Ken, Barbie, and Skipper owned a property Barbie owns two-thirds, and Midge
as a joint tenancy. When Skipper moved out owns one-third.
of state, she sold her interest to Midge. Two
years later, Ken died. How is the interest in
the property divided?
5. Why would an appraiser use gross income The property has income from other
multiplier, direct capitalization, or yield cap- sources in addition to rent.
italization—rather than gross rent multipli-
er—to determine the value of an income
property?
6. A young professional couple from out of Pie chart
state have been referred to you. The couple
knows nothing about the area and would
like some demographic information before
they buy a home in the area. Basically, they'd
like a breakdown by age of the population.
Which of the following would be the best
tool to present this information?
, TEXAS SAE: REAL ESTATE APPRAISAL
Study online at https://quizlet.com/_8jqpmy
7. Which of the following statements about a The owner may place a time limit on the
property owner placing a restriction on a restriction.
deed is true?
A restriction may run with the land forev-
er (appearing on all future deeds), or it
may have a time limit.
8. What's another name for the building plan? Blueprint
9. When a large tract of land is purchased and Subdivision development
prepared for development, and then split
into parcels, the value of each lot as a res-
idential building site must be determined.
The method used to value each individual
parcel is known as the ______ method.
10. What are improvements with regard to prop- Artificial attachments to land that include
erty? items such as fencing, buildings, and
walkways
11. You are viewing a home with a buyer client. The home is a manufactured home and
When you open one of the bedroom closets, this is the data plate.
you find a piece of paper with some infor-
mation stuck to the inside of the door. What
have you most likely discovered?
12. What type of window design is similar to Jalousie
window blinds?
13. Sally is looking at average home prices in Line graph
her area over the last 10 years. The graph
of the data makes it especially easy to see
, TEXAS SAE: REAL ESTATE APPRAISAL
Study online at https://quizlet.com/_8jqpmy
the changes over time. What type of graph
is most likely being used to present this data
14. When following the Uniform Standards of Estimate value of the land
Professional Appraisal Practice process for
real estate appraisal, an appraiser will
_________ after determining the subject prop-
erty's highest and best use.
15. Which of these situations requires the ser- A lender needs an appraisal for a feder-
vices of a state-licensed or state-certified ap- ally related transaction.
praiser?
16. How is the adjusted sales price calculated By adding or subtracting the sum of
for a comparable property using the sales the adjustments made on a comparable
comparison approach? property
When using the sales comparison ap-
proach, appraisers add or subtract the
net adjustment (the sum of adjustments
for a property) from the sale price of
a comparable to get an adjusted sale
price.
17. The fewer properties on the market, the Prices are pushed upward.
greater the scarcity. What's the effect on
prices?
18. Maxwell is a tenant. His lease has a fixed rent Gross
in which the landlord pays all taxes, insur-
ance, and maintenance expenses. What type In a gross lease, the tenant pays a fixed
of lease does he have? rent, and the landowner pays taxes, in-
, TEXAS SAE: REAL ESTATE APPRAISAL
Study online at https://quizlet.com/_8jqpmy
surance, and maintenance expenses for
the property.
19. Which types of REITs don't buy properties Mortgage REITs
but instead invest in real estate debt?
20. Which land valuation method uses the Ground rent capitalization method
amount of ground rent the land will gener-
ate, and then capitalizes that income into a The ground rent capitalization method
value for the land using a capitalization rate? can be used to estimate land value when
a ground lease exists or when the land is
vacant.
21. When do clients typically opt for the Exteri- When there's a very low loan-to-value
or‐Only Inspection Residential Appraisal Re- ratio
port (Form 2055)?
This report is often called a "drive by,"
because the scope of work the client re-
quires includes fewer steps than other
types of reports.
22. Which of these should tenants keep in mind Installation and removal should not
regarding trade fixtures? cause damage to the property.
23. Philip owns land in a state where growing Control
marijuana is illegal. He wants to set up a
small marijuana growing operation and ex-
port to states where marijuana has been
legalized. He asks his attorney about the
possibility. "No," his attorney explains. "It's
not possible. Although you own the property
outright, the right of ______ only allows you to
Study online at https://quizlet.com/_8jqpmy
1. Which two terms are synonymous and are Economic rent, market rent
defined as the amount of rent typical for
properties that are comparable to the sub-
ject property?
2. Which of the following properties would you Q1, C1
expect to appraise highest?
3. There are many advantages to holding prop- Avoid probate
erty within a trust. One of the most impor-
tant advantages is that some trusts ______.
4. Ken, Barbie, and Skipper owned a property Barbie owns two-thirds, and Midge
as a joint tenancy. When Skipper moved out owns one-third.
of state, she sold her interest to Midge. Two
years later, Ken died. How is the interest in
the property divided?
5. Why would an appraiser use gross income The property has income from other
multiplier, direct capitalization, or yield cap- sources in addition to rent.
italization—rather than gross rent multipli-
er—to determine the value of an income
property?
6. A young professional couple from out of Pie chart
state have been referred to you. The couple
knows nothing about the area and would
like some demographic information before
they buy a home in the area. Basically, they'd
like a breakdown by age of the population.
Which of the following would be the best
tool to present this information?
, TEXAS SAE: REAL ESTATE APPRAISAL
Study online at https://quizlet.com/_8jqpmy
7. Which of the following statements about a The owner may place a time limit on the
property owner placing a restriction on a restriction.
deed is true?
A restriction may run with the land forev-
er (appearing on all future deeds), or it
may have a time limit.
8. What's another name for the building plan? Blueprint
9. When a large tract of land is purchased and Subdivision development
prepared for development, and then split
into parcels, the value of each lot as a res-
idential building site must be determined.
The method used to value each individual
parcel is known as the ______ method.
10. What are improvements with regard to prop- Artificial attachments to land that include
erty? items such as fencing, buildings, and
walkways
11. You are viewing a home with a buyer client. The home is a manufactured home and
When you open one of the bedroom closets, this is the data plate.
you find a piece of paper with some infor-
mation stuck to the inside of the door. What
have you most likely discovered?
12. What type of window design is similar to Jalousie
window blinds?
13. Sally is looking at average home prices in Line graph
her area over the last 10 years. The graph
of the data makes it especially easy to see
, TEXAS SAE: REAL ESTATE APPRAISAL
Study online at https://quizlet.com/_8jqpmy
the changes over time. What type of graph
is most likely being used to present this data
14. When following the Uniform Standards of Estimate value of the land
Professional Appraisal Practice process for
real estate appraisal, an appraiser will
_________ after determining the subject prop-
erty's highest and best use.
15. Which of these situations requires the ser- A lender needs an appraisal for a feder-
vices of a state-licensed or state-certified ap- ally related transaction.
praiser?
16. How is the adjusted sales price calculated By adding or subtracting the sum of
for a comparable property using the sales the adjustments made on a comparable
comparison approach? property
When using the sales comparison ap-
proach, appraisers add or subtract the
net adjustment (the sum of adjustments
for a property) from the sale price of
a comparable to get an adjusted sale
price.
17. The fewer properties on the market, the Prices are pushed upward.
greater the scarcity. What's the effect on
prices?
18. Maxwell is a tenant. His lease has a fixed rent Gross
in which the landlord pays all taxes, insur-
ance, and maintenance expenses. What type In a gross lease, the tenant pays a fixed
of lease does he have? rent, and the landowner pays taxes, in-
, TEXAS SAE: REAL ESTATE APPRAISAL
Study online at https://quizlet.com/_8jqpmy
surance, and maintenance expenses for
the property.
19. Which types of REITs don't buy properties Mortgage REITs
but instead invest in real estate debt?
20. Which land valuation method uses the Ground rent capitalization method
amount of ground rent the land will gener-
ate, and then capitalizes that income into a The ground rent capitalization method
value for the land using a capitalization rate? can be used to estimate land value when
a ground lease exists or when the land is
vacant.
21. When do clients typically opt for the Exteri- When there's a very low loan-to-value
or‐Only Inspection Residential Appraisal Re- ratio
port (Form 2055)?
This report is often called a "drive by,"
because the scope of work the client re-
quires includes fewer steps than other
types of reports.
22. Which of these should tenants keep in mind Installation and removal should not
regarding trade fixtures? cause damage to the property.
23. Philip owns land in a state where growing Control
marijuana is illegal. He wants to set up a
small marijuana growing operation and ex-
port to states where marijuana has been
legalized. He asks his attorney about the
possibility. "No," his attorney explains. "It's
not possible. Although you own the property
outright, the right of ______ only allows you to
