IAAO Course 101 Workbook: Chapter 2 Questions and Answers

Cadastral maps - Answer- Are also known as assessment maps, appraisal maps, ownership maps and tax maps Cadastral maps show - Answer- Boundaries of parcels, size and location of parcels relative to other properties, major physical features such as roads streams railroads, etc... Map scale - Answer- The relationship of linear distance on the map to linear distance on the ground CAD mapping system - Answer- Computer assisted drafting GIS mapping system - Answer- Geographic information system CAD mapping system use - Answer- Used to produce maps CAD data elements include all graphics needed to draw a map, lines, line strings, text in symbols, and can greatly reduce the time for milk production over traditional hand drawn cartographic processes GIS mapping system use - Answer- The technology stores land information in a computer database, comprises geography (lines) and attributes(info about the lines); different kinds of information are often stored in different layers and can be used as an appraisal tool by linking to CAMA Two types of cadastral maintenance - Answer- Systematic maintenance and general maintenance General map maintenance - Answer- Results from changes to the maps and records from information other than deeds, wills and plats. For example, street name changes, mailing address changes, new highway construction, corporate limit lines and physical feature changes Systematic map maintenance - Answer- The routine processing of changes to boundary lines and ownership records as a result of real property transfers Parcel identification systems - Answer- Provide a method for referencing land parcels or data associated with parcels using a number code instead of a complete legal description Six desirable characteristics for a personal identification system - Answer- Uniqueness, permanence, simplicity, ease of maintenance, flexibility and reference to geographic location Metes and bounds legal description systems - Answer- (oldest method) originally parcels of land were described by using natural features as the most significant information, bearings are used to determine the direction of each individual boundary line starting and stopping at the point of beginning Public land survey system - Answer- (Directed by the Continental Congress in 1785) (township and sections) land surveyed in subdivided according to a system that incorporates spherical coordinates (latitude and longitude) for the primary lines and rectangular Coordinates for the secondary lines A township is comprised of - Answer- 36, one-mile-Square sections; sections are numbered consecutively, beginning with one in the north east corner and ending with 36 south east corner Baselines run - Answer- East and west Principal meridian lines run - Answer- North and south The area of a section - Answer- 1 mile Square Number of acres in a square mile - Answer- 640 acres Platted subdivision method - Answer- A means of describing property by numbered lots The shape of a parcel of land - Answer- Similar to a three dimensional pyrmid, with its apex at the center of the earth, extending upward through the suface into space The five attributes of land - Answer- Permanent and durable, unique in both location and composition, a finite supply, functional and stationary Unimproved land - Answer- Raw land, in its natural state prior to grading, construction and/or subdividing Improved land - Answer- Land that is developed to the extent that it is ready for its intended use and referred to as a site, includes both improvements to land and improvements on land(on-site,off-site) Map scale for areas with parcels that are several hundred to thousands of acres - Answer- 1" = 1,000' Map scale for rural areas with parcels greater than 1 acre and may be several hundred acres - Answer- 1" = 400' Map scale used for suburban areas and small towns with frontages of 100 feet or more - Answer- 1" = 200' Map scale used for urban areas in which the typical lot frontage is at least 50 feet and detailed information is not required - Answer- 1" = 100' Map scale for congested urban areas - Answer- 1" = 50' A degree - Answer- 60 minutes with the symbol being ( ' ) A minute - Answer- 60 seconds with the symbol being ( " ) A bearing - Answer- Provides the number of degrees, minutes and seconds to the east or west of a due north or south direction In a meets and bounds description - Answer- Each property line is described, with the beginning of each line being the end of the preceding line, continuing until the point of beginning (POB)is reached The bearing line - Answer- Expressed in terms of quadrants (the four quadrants of the compass Northeast, Southeast, southwest and northwest) and degrees for example North 50° east, south 10° west Base lines - Answer- Run east and west Principal meridian lines - Answer- Run north and south A section of a township is numbered beginning in - Answer- The north east corner, proceeding consecutively like a snake and ending in the south east corner Fractional lots or government lots - Answer- Quarter - quarter sections do not have the standard 40 acres (always located along the west and north side of the Township) The four factors of production - Answer- Labor, management, capital and land (in that order) Surplus productivity - Answer- The net income remaining after the costs of labor, management and capital are satisfied The principle of change implies - Answer- Market value was created by external factors, such as zoning, rent controls, interest rates, transportation and local economic conditions Factors affecting land values - Answer- (PEGS) physical factors, economic factors, governmental factors and social factors Physical factors - Answer- Are both natural and man-made physical circumstances that affect land value, i.e., site size, topography, etc. Economic factors - Answer- Public's buying power Governmental factors - Answer- Regulations, services and facilities instituted or provided by federal, state and local government's that affect land-use patterns Social factors - Answer- Demographic (population) attitudes, characteristics and trends Stratification - Answer- Sorting data into homogenous groups The first step in the analysis of sales and other market data for land - Answer- Stratification (The primary sort is by market area) Graphic analysis - Answer- Placing land on a graph can help an appraiser to discern patterns in land values When graphing land data - Answer- The sale price per unit is the dependent variable and should be placed on the Y axis; any other variable the appraiser wants to consider can be selected as an independent variable and placed on the X axis Site specific data - Answer- Include both on site and off site improvements Important site specific data include - Answer- Frontage, width, depth, shape, area, topography, soil condition and offsite improvements The six steps that comprise land valuation by sales comparison - Answer- Market research, validation of sales, selection of appropriate unit of comparison, comparison of sole property to the subject, adjustment of comparables sales prices, reconciliation of indicated values Basic units of comparison - Answer- Front foot, square-foot, acre, site and units buildable Comparable adjustment techniques - Answer- Lump sum Dollar adjustments, cumulative percentage adjustments, multiplying percentages The order of adjustments in the direct sales comparison - Answer- Financing, market conditions (time of sale), then location and physical characteristics The sequence of adjustments is critical when utilizing - Answer- The cumulative percentage adjustment method Methods to determine adjustment amounts for location and physical characteristics - Answer- Paired sales, adjusted paired sales and multiple regression analysis Siteland valuation methods - Answer- Direct sales comparison, allocation, abstraction, anticipated use or development, capitalization of ground rent and land residual capitalization Assemblage - Answer- The merging of adjacent properties into one common ownership, the unit value does not change Plottage - Answer- The combining of two or more sites, creating a site that has a greater utility and an increased unit value Sales comparison method - Answer- Compares the subject property with comparable vacant parcels that have recently sold Allocation method - Answer- A portion of the total property value is assigned or allocated to the site; based on the principle of balance Abstraction method - Answer- Requires the appraiser to calculate the depreciated value for the improvements and then deduct this value from the sale price, there are many values indicate a value of the land Anticipated use or development method - Answer- The total development costs including profit and overhead are deducted from the estimated gross revenue the remainder is indicated value of the land in its present undeveloped condition Capitalization of ground rent - Answer- Net income is developed and then converted or capitalized into an indication of value Land residual capitalization - Answer- The income attributable to the land is capitalized, or converted into a value indicator for the land