Basic Appraisal Procedures Exam Questions and Answers Already Passed

Basic Appraisal Procedures Exam Questions and Answers Already Passed "The estimated cost to construct, at current prices as of the effective appraisal date, an exact duplicate or replica of the building being appraised, using the same materials..." is the definition of _______________ cost. reproduction Footings need to be _______________ below average frost penetration levels. at least 12 inches GRMs are derived by dividing the __________ by the property's ___________ at the time of sale. sale price, gross monthly unfurnished market rent The Fannie Mae Single Family Comparable Rent Schedule is designated as Form 1007 "A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis" is the definition of hypothetical condition What type of framing became popular in the 1800s with the advent of the steam-powered sawmill? balloon frame When estimating the amount of adjustments for differences among properties, the most important principle is the principle of _______________. contribution A _______________ home has a permanent steel chassis, wheels and axles. manufactured An expansion tank is part of a ___________ heating system. hot water When describing roofing shingles, a "square" contains __________ square feet. 100 The most commonly used approach for valuing sites is the ____________ approach. sales comparison J-bolts are used to anchor the _________ to the __________. sill plate, foundation "The amount and type of information researched and the analysis applied in an assignment" is the definition of scope of work GLA includes _______________ but not _______________. above grade finished area, garages The most common heating systems in residential construction today are forced warm air EIFS is also known as synthetic stucco Which cost estimating method is the most detailed and time-consuming to develop? quantity survey Segregated cost method is another name for the _________ method. unit-in-place The cost estimating method most commonly used by residential appraisers is the ____________ method. comparative-unit When measuring a condominium you should calculate ____ using _______ measurements. GLA, interior 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. identify, credible The last step in the valuation process is report the final opinion of value In most residential appraisals, the appraiser values site The basic principle underlying the cost approach is the principle of ____________. substitution Traffic counts can be obtained from the local Department of Transportation Multiple listing services can be utilized for gathering _______________. both general and specific data "A method used to convert future benefits into present value by discounting each future benefit at an appropriate yield rate or by developing an overall rate that explicitly reflects the investment's income pattern, value change and yield rate" is the definition of yield capitalization Curbs, gutters and grading are examples of site improvements Fannie Mae says the appraiser must base his or her analysis and any adjustments to comparable sales on market data "An element of comparison in the sales comparison approach; comparable properties can be adjusted for differences in the motivations of either the buyer or a seller in a transaction" is the definition of conditions of sale Early ductless heating systems were called gravity systems An appraisal with an effective date at some point in the future is called a(n) ___________ appraisal. prospective A short-lived item is a building component with an ___________ life that is shorter than the ___________ life of the entire structure. expected remaining economic, remaining economic Modular homes are constructed to meet __________ requirements. State and Local Footings should be ________ as wide as the ____________. twice, foundation wall 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 entrepreneurial incentive "The relationship or ratio between the sale price or value of a property and its periodic gross rental income" is the definition of gross rent multiplier In the sales comparison approach, sales data on __________ sales should be collected. at least three What is another name for "soft costs"? indirect costs Appraisers are cautioned to identify the exact _______________ of market value, and its _______________, applicable in each appraisal completed for the purpose of market value. definition, authority A ___________ home has a permanent steel chassis, wheels and axles. manufactured The most common type of framing in residential construction today is platform frame A cement mixture that is applied to the exterior of a foundation wall is called parging USPAP says a cost approach must be developed when it is necessary for credible results Developers often value land on a basis of price per buildable unit Ranking analysis is a form of __________ analysis. qualitative "A condition of real estate that may occur when the expansion, redevelopment, or reuse of the real estate may be complicated by the presence of environmental contamination that needs to be remediated to appropriate regulatory standards" is the definition of brownfield A mortgage in which a party other than the borrower assumes payment in the event of default is a(n) _____________ mortgage. guaranteed What unit of measurement is typically used for single-family homes? gross living area Fill, grading and permits are examples of improvements that create a Site The cost approach formula states that reproduction or replacement cost new _______________, _______________ equals property value. minus depreciation, plus site value Which of the stages in the life cycle of a market area does not always occur? revitalization Keyways are employed in which type of foundation walls? poured concrete The intended user of an appraisal is the __________ and any other user, as identified by _________. Client, name or type A _______________ home is built in accordance with the HUD Code. manufactured "Land that is improved so that it is ready to be used for a specific purpose" is the definition of Site "The tenant's possessory interest created by a lease" is the definition of _______________. leasehold interest The URAR sales comparison grid requires you to enter in the _________ age of the subject property and comparables. actual If an appraiser uses a cost manual to estimate cost new for a property, the result is replacement cost The results of a _________ test will determine if there is suitable drainage and the size of the drain field that will be required for a septic system. percolation If a comparable property sells with atypical financing, we may have to make an adjustment for ___________. cash equivalency Today the _______________ technique of site valuation is used primarily in highest and best use analysis. land residual Parging is used on which kind of foundation wall? concrete block In the age-life method of estimating depreciation, the ___________ age is divided by the ____________ life. effective age, total economic life Property that fronts on a lake is usually valued on a basis of price per front foot Materials that transfer energy quickly are called _______________. conductors the "summation approach" is another name for the _______________ approach. cost The method that estimates land value based on a percentage of the total property value is the _______________ method. allocation It is common in appraisal reports to include a map that shows the location of the _______________. subject property and comparable sales __________ occurs within a property; while _________occurs off the site. Physical deterioration and functional obsolescence, external obsolescence A one-and-a-half-story house is commonly known as a cape cod What are the three general types of depreciation? physical, functional, and external Most residences today require a minimum of _____ amps. 100 In the sales comparison approach, we always adjust the _________; we never adjust the ____________. comparable sales, subject property "The total period a building lasts or is expected to last" is the definition of _________ life. physical When appraising a duplex, an appraiser should use __________ area. gross building The most common unit of comparison for land in rural areas is price per _______. acre "Expenditures or allowances for items other than labor and materials that are necessary for construction, but are not typically part of the construction contract" is the definition of indirect costs A management fee usually is based on a percentage of the _________ income. gross "Details about the property being appraised, comparable sale and rental properties, and relevant local market characteristics" is the definition of specific data "The actual or anticipated net income that remains after all operating expenses are deducted from effective gross income but before mortgage debt service and book depreciation are deducted" is the definition of net operating income The cost approach formula states that ______________, minus depreciation, _______________, equals property value. cost new, plus site value The credibility of assignment results is always measured in the context of the _______________. intended use "The actual rental income specified in a lease" is the definition of ___________ rent. contract Two squares of 180-pound roof shingles would weigh _____ pounds. 360