Basic Appraisal Procedures, test review

Basic Appraisal Procedures, test review "The age of property that is based on the amount of observed deterioration and obsolescence it has sustained" is the definition of ____________ age. - ANS effective In what type of heating system would you find an expansion tank? - ANS hot water Which of the following would be general data? - ANS mortgage rates, unemployment rates, property tax rates A comparable new house just sold for $440,000. You estimate the value of the site at $90,000 and the cost of the site improvements at $15,000. It has 2,885 square feet of GLA. What is its unit cost? - ANS $116.12 "A method of estimating land value in which the depreciated cost of the improvements on an improved property is calculated and deducted from the total sale price to arrive at an estimated sale price for the land" is the definition of the ___________ method of site valuation. - ANS extraction A factory-built house constructed in compliance with the HUD code is _________ home. - ANS manufactured Appraisal fees are examples of _______________ costs. - ANS indirect The most common unit of comparison for land in rural areas is price per _______. - ANS acre Which entity produces the most commonly-used land appraisal report form? - ANS it is a generic form Condemnation occurs when a municipality exercises - ANS eminent domain "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 - ANS hypothetical condition USPAP says a cost approach must be developed when it is necessary for - ANS credible results Construction materials and workers' wages are examples of __________costs. - ANS direct You examine a construction contract to build a 2,448 square foot house and the total cost is $197,450. What was the cost per square foot? - ANS $80.66 Most residences today require a minimum of _____ amps. - ANS 100 Footings need to be _______________ below average frost penetration levels. - ANS at least 12 inches In the sales comparison approach, sales data on __________ sales should be collected. - ANS at least three "Real property for which 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 - ANS brownfield What unit of measurement is typically used for single-family homes? - ANS gross living area Keyways are employed in which type of foundation walls? - ANS poured concrete The "summation approach" is another name for the _______________ approach. - ANS cost In most residential appraisals, the appraiser values - ANS site A building was constructed in July 2000 for $654,200. The cost index at that time was 138.5. The current cost index is 221.8. What is the indicated reproduction cost of the building today? - ANS $1,046,720 Separate site valuations would likely be required in which situations? - ANS cost approach, condemnation appraisals, highest and best use analysis A comparable sale of a new house just sold for $640,000. You estimate the value of the site at $120,000 and the cost of the site improvements at $18,000. It has 2,940 square feet of GLA. What is its unit cost? - ANS $170.75 Two squares of 180-pound roof shingles would weigh _____ pounds. - ANS 360 The most common type of framing in residential construction today is - ANS platform frame In the sales comparison approach, we always adjust the _________; we never adjust the ____________. - ANS comparable sales, subject property Footings should be ________ as wide as the ____________. - ANS twice, foundation wall What is the most common type of framing currently being used in new homes? - ANS platform frame When describing roofing shingles, a "square" contains __________ square feet. - ANS 100 Examples of short-lived items: - ANS roof covering, water heater, carpeting 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? - ANS 96.3 A building was constructed in July 2000 for $754,200. The cost index at that time was 133.6. The current cost index is 201.8. What is the indicated cost new of the building today? - ANS $1,138,842 Architectural and engineering fees are examples of _____________ costs. - ANS indirect A _______________ home has a permanent steel chassis, wheels and axles. - ANS manufactured Fannie Mae requires a single-unit residential appraisal report to include photographs of - ANS the subject property and comparable sales 40 of 60 - A deed could provide all of the following information about a property EXCEPT - ANS zoning (what a deed does provide: owner of record, easements, deed restrictions) Multiple listing services can be utilized for gathering _______________. - ANS both general and specific data Which type of depreciation occurs off the site? - ANS external An appraiser encounters an underground storage tank and there are no signs of leakage or failure. An appraisal could be performed under the presumption that the tank is not leaking and the property is not contaminated. This would be an example of a(n) - ANS extraordinary assumption The most common unit of comparison for land in urban areas is price per _______. - ANS square foot An 8-unit apartment building has 5 units rented at $850 per month and 3 units rented at $925 per month. What is its gross income? - ANS $84,300 A mortgage in which a party other than the borrower assumes payment in the event of default is a(n) _____________ mortgage. - ANS guaranteed "The type of data and the extent of research and analyses" is the definition of - ANS scope of work Each written appraisal report must contain the date - ANS of the report and the effective date of the appraisal "The total period a building lasts or is expected to last..." is the definition of _________ life. - ANS physical Which of the following would NOT be a common adjustment when appraising land? - ANS quality Which of the following WOULD be a common adjustment when appraising land? - ANS size, shape, topography The ground rent capitalization method should only be used when appraising a property that is - ANS income-producing or suitable for income production When measuring a condominium you should calculate ____ using _______ measurements. - ANS GLA, interior Market condition adjustments should always be calculated from the time of the ________ to the ___________. - ANS contract, effective date of the appraisal A property has a cost new of $350,000. It has an effective age of 20 years and a total expected economic life of 65 years. There are curable items totaling $45,000. If they are cured, it will reduce the effective age to 15 years. What is the value of the improvements on a modified age-life basis, before including the site value? - ANS $234,545 "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 - ANS conditions of sale The identification of relevant characteristics is a judgment made by - ANS the appraiser A house is rented for $1,050 per month, but lacks air conditioning. Comparable houses with air conditioning, rent for $1,100 per month. The appropriate gross rent multiplier is 75. By the capitalized value method, how much is the depreciation attributable to the lack of air conditioning? - ANS $3,750 Which was the earliest form of electrical wiring? - ANS knob and tube If an appraiser uses a cost manual to estimate cost new for a property, the result is - ANS replacement cost Segregated cost method is another name for the _________ method. - ANS unit-in-place The most complex method of site valuation is the _______________ method. - ANS subdivision development The _______________ method has good application in valuing land in rural areas and in older, urban areas. - ANS extraction Soil maps produced by the Natural Resources Conservation Service are based on - ANS aerial maps 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. - ANS percolition When the property being appraised is a one-family property that will be used as an investment property, Fannie Mae requires that the appraiser must prepare a ______________. - ANS form 1004 and form 1007 If a cost manual is used, the result is _____________ cost. - ANS replacement A short-lived item is a building component with an ___________ life that is shorter than the ___________ life of the entire structure. - ANS expected remaining economic, remaining economic An old gas station on a good corner location in a desirable older neighborhood recently sold for $375,000. The reproduction cost of the improvements today would be $350,000 and the total depreciation is estimated to be 75%. What is the land value? - ANS $287,500 "The relationship or ratio between the sale price or value of a property and its periodic gross rental income" is the definition of - ANS gross rent multiplier When estimating the amount of adjustments for differences among properties, the most important principle is the principle of _______________. - ANS contribution Fannie Mae says the cost approach ____________________. - ANS is optional "The actual rental income specified in a lease" is the definition of ___________ rent. - ANS contract A house has a total cost new of $212,340. It is 12 years old and has an estimated remaining economic life of 38 years. The cost to cure deferred maintenance items is $670. Short lived items Cost is $20,000 and depreciation has been identified totaling $4,850 for short-lived items. What is the amount of long-lived depreciation attributable to the building? - ANS $46,000 A cement mixture that is applied to the exterior of a foundation wall is called - ANS parging An example of a special purpose property would be a(n) - ANS school building All of the following could be sources of general data EXCEPT - ANS zoning ordinances All of the following could be sources of general data - ANS utility companies, school districts, departments of transportation The most common heating systems in residential construction today are - ANS forced warm air In the age-life method of estimating depreciation, the ___________ age is divided by the ____________ life. - ANS effective age, total economic life EIFS is also known as - ANS synthetic stucco Price per room is a common unit of comparison when appraising - ANS 2-4 unit residential properties 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. - ANS identify, credible The ________ approach is particularly applicable in the appraisal of special purpose properties. - ANS cost The most commonly used approach for valuing sites is the ____________ approach. - ANS sales comparison approach Which type of valuation analysis would typically NOT include a separate site valuation? - ANS gross rent multiplier A partial estate could be created by the existence of all the following EXCEPT - ANS condominium The cost estimating method most commonly used by residential appraisers is the ____________ method. - ANS comparative-unit Functional obsolescence could be caused by all of the following EXCEPT - ANS deferred maintenance "Data that relates to the four forces that affect real property values—social, economic, governmental, and environmental forces" is the definition of - ANS general data Which of the stages in the life cycle of a market area does not always occur? - ANS revitalization An appraisal with an effective date at some point in the future is called a(n) ___________ appraisal. - ANS prospective "The amount by which contract rent exceeds market rent at the time of the appraisal...." is the definition of __________ rent. - ANS excess "The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease" is the definition of _______________. - ANS leasehold interest It is common in appraisal reports to include a map that shows the location of the _______________. - ANS subject properties and comparable sales What type of framing became popular in the 1800s with the advent of the steam-powered sawmill? - ANS balloon frame Fill, grading and permits are examples of improvements that create a - ANS site Developers often value land on a basis of price per - ANS buildable unit An expansion tank is part of a ___________ heating system. - ANS hot water Property that fronts on a lake is usually valued on a basis of price per - ANS front foot In a market value appraisal, every comparable sale should have been sold in an _______________ transaction, with no undue _______________. - ANS arms-length, duress The cost approach formula states that ______________, minus depreciation, _______________, equals property value. - ANS cost new, plus site value A property sold for $200,000. There was a $20,000 down payment and the rest was in the form of a 30-year mortgage at 6% interest. The seller paid 3 points at the closing. How much was that? - ANS $5,400 A management fee usually is based on a percentage of the _________ income. - ANS gross An appraiser must not allow the intended use of an assignment or a client's objectives to cause the assignment results to be __________. - ANS biased Ranking analysis is a form of __________ analysis. - ANS qualitative The valuation process is a systematic procedure employed to provide the answer to a(n) _______ question about the value of _________. - ANS client's, real property When appraising a duplex, an appraiser should use __________ area. - ANS gross building "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 - ANS yield capitalization The most common brownfield contaminant is - ANS petroleum An estimate of remaining economic life is required by - ANS VA (Veterans Association) GLA includes _______________ but not _______________. - ANS garages What is another name for "indirect costs"? - ANS soft costs Flood maps are prepared by - ANS FEMA Which site valuation methods should only be utilized when the subject property is income-producing by nature? - ANS land residual and ground rent capitalization In a federally related transaction, a licensed residential appraiser is permitted to appraise non-complex 1-4 unit residential properties with a transaction value of less than ________ and complex 1-4 unit residential properties with a transaction value less than _________. - ANS $1,000,000; $250,000 What are the three general types of depreciation? - ANS physical, functional, external "The estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvements, using modern materials and current standards, design, and layout" is the definition of__________ cost. - ANS replacement Which cost estimating method is the most detailed and time-consuming to develop? - ANS quantity survey "Improved land or a lot in a finished state so that it is ready to be used for a specific purpose" is the definition of - ANS site Examples of sources of general data: - ANS utility companies, school districts, departments of transportation Another name for girder is - ANS beam A dwelling has a reproduction cost of $625,000. It is 10 years old and has an effective age of 12. Its remaining economic life is estimated to be 48 years. What is the depreciated value of the improvements by the age-life method, before including the site value? - ANS 12/(12+48) = 0.2; $625,000 x 0.2 = 125,000. $625,000 - 125,000 = $500,000. Drilled wells need to use __________ until the drilling enters ___________. - ANS casing, bedrock "An amount paid for the use of land, improvements or a capital good" is the definition of - ANS rent Which would NOT be a sub-step in defining the problem? - ANS highest and best use analysis A 5 year old water heater with an expected life of 12 years and a replacement cost of $825 will have experienced depreciation of $__________. - ANS $344.03 "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. - ANS reproduction Building permits and worker's compensation are examples of __________costs. - ANS direct