Basic Appraisal Procedures Q&A 2023/2024

Basic Appraisal Procedures Q&A 2023/2024 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 - 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? - ANSWER $252,000 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? - ANSWER leave it as one parcel Price per room is a common unit of comparison when appraising - ANSWER 2-4 unit residential properties 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? - ANSWER 96.3 "The relationship or ratio between the sale price or value of a property and its gross annual rental income" is the definition of - ANSWER gross income multiplier Building permits and worker's compensation are examples of __________costs. - ANSWER direct A mortgage in which a party other than the borrower assumes payment in the event of