Texas SAE Real Estate Appraisal Exam Review Questions and Answers

Transferability Which value-influencing DUST factor addresses the ease with which the property can be conveyed to another? Present index ÷ Index at time of construction x Original cost = Present cost To arrive at the present cost, the appraiser applies a factor that represents the costs of construction over time up to the appraisal date (present index ÷ index at time of construction) multiplied by the subject building's original cost. Which of the following formulas is used with the index method to find the reproduction cost? The same neighborhood When possible, comparable sales from ______ should be used. A parcel of land, the structures on it, and shared common areas Ownership in a planned unit development consists of ______. Unpaid taxes become a lien against the property. In what way is taxation an inherent burden on private landownership? Deductible on her personal income tax returns As the resident in a cooperative, her share of mortgage interest and real estate taxes is deductible on personal income tax returns. Bianca wants to buy a cooperative, but she's unsure that she can afford it. With a cooperative, her share of mortgage interest and real estate taxes will be ______. The appraiser, the lender, and the consumer The Appraiser Independence Requirements protect which party or parties? 10X (100,000/10,000) Using the gross income multiplier (GIM) valuation method, a property's sales price is divided by its gross income. If a property has a sales price of $100,000 and gross income of $10,000, what is its GIM? Appraiser Which professional is hired by the buyer and lender to give an opinion of value of the property? The appraiser selects the adjusted sales price of the property most like the subject to use as the indicated value. Which of the following best describes how an appraiser reconciles the adjusted sales prices of the comparable properties to indicate the value of the subject property?