Basic Appraisal Procedures Exam Solution Manual Already Passed
Replacement cost - Answers If an appraiser uses a cost manual to estimate cost new for a property, the
result is
Qualitative analysis - Answers Ranking analysis is a form of
Soft costs - Answers Another name for indirect costs
Direct costs - Answers Building permits and workers compensation are examples of
Relevant characteristics - Answers A judgement made by the appraiser
Manufactured home - Answers A home that has a permanent steel chassis, wheels and axles
General data - Answers Mortgage rates, unemployment rates, property tax rates
Land adjustments - Answers Size shape topography
Comparable sales - Answers In the sales comparison approach we always adjust the
Scope of work - Answers The amount and type of information researched and the analysis applied in an
assignment
Cost per square foot - Answers Divide sale price by square foot size
Conditions of sale - Answers In the sales comp approach, comparable properties can be adjusted for
differences in motivations of either the buyer or a seller in a transaction
Report the final opinion of value - Answers The last step in the valuation process
At least 12" - Answers Footings need to be below average frost penetration levels
Manufactured home - Answers A factory house built in accordance with the HUD code
Conductors - Answers Materials that transfer energy quickly
Licensed residential appraiser - Answers Non complex 1-4 unit residential properties less than $1 million
and complex 1-4 unit residential properties less than $250,000
Short lived depreciation - Answers Years old (age) divided by life expectancy equals depreciation.
Replacement cost new times depreciation rate equals dollar amount of depreciation
Extraction method of site valuation - Answers A method of estimating land value in which the
depreciated cost of the improvements on the improved property is calculated and deducted from the
total sale price to arrive at an estimated sale price for the land
Credible results - Answers USPAP says a cost approach must be developed when it is necessary for
, Property tax assessment - Answers Assessed price (134 (thousands)) times (x) rate per thousand ($9.55)
equals (=) total property taxes ($1,279.70)
School building - Answers An example of special purpose property
FEMA - Answers prepares flood maps
Sales comparison approach - Answers The most commonly used approach for valuing sites
GRMs - Answers Derived by dividing sale price by the property's gross monthly unfurnished market rent
Parging - Answers A cement mixture that is applied to the exterior of a concrete block foundation wall
Extraction method to Find land value - Answers Sale price-reproduction cost=difference reproduction
cost x depreciation + or - difference (when reproduction cost is less than sale price add difference when
reproduction cost is more than sale price subtract difference
Cost approach to property value - Answers Reproduction or replacement cost new minus depreciation,
plus site value equals
Replacement cost - Answers If a cost manual is used the result is
actual age - Answers The URAR sales comparison grid requires you to enter for subject property and
comparables
Dept of Transportation - Answers Obtain traffic counts from
Determine highest and best use - Answers Physically possible, economically feasible, and legally
permitted
Front foot - Answers Waterfront property is usually valued on a basis of price per
Substitution - Answers The basic principle underlying the cost approach is the principle of
Prospective appraisal - Answers An appraisal with an effective date at some point in the future is called
Specific data sources - Answers Tax maps, deeds, assessor's records
Cash equivalency - Answers A comparable property sells with atypical financing adjustments need to be
made for
Unit cost - Answers Sale price-site value-site improvements / GLA
Principle of contribution - Answers The most important principle when estimating the amount of
adjustments for differences among properties
Reproduction cost by cost index - Answers Cost index at time of sale divided by current cost index. 100-
difference= percent increase. Percent increase x sale date price. Price + increase $ amount =
Replacement cost - Answers If an appraiser uses a cost manual to estimate cost new for a property, the
result is
Qualitative analysis - Answers Ranking analysis is a form of
Soft costs - Answers Another name for indirect costs
Direct costs - Answers Building permits and workers compensation are examples of
Relevant characteristics - Answers A judgement made by the appraiser
Manufactured home - Answers A home that has a permanent steel chassis, wheels and axles
General data - Answers Mortgage rates, unemployment rates, property tax rates
Land adjustments - Answers Size shape topography
Comparable sales - Answers In the sales comparison approach we always adjust the
Scope of work - Answers The amount and type of information researched and the analysis applied in an
assignment
Cost per square foot - Answers Divide sale price by square foot size
Conditions of sale - Answers In the sales comp approach, comparable properties can be adjusted for
differences in motivations of either the buyer or a seller in a transaction
Report the final opinion of value - Answers The last step in the valuation process
At least 12" - Answers Footings need to be below average frost penetration levels
Manufactured home - Answers A factory house built in accordance with the HUD code
Conductors - Answers Materials that transfer energy quickly
Licensed residential appraiser - Answers Non complex 1-4 unit residential properties less than $1 million
and complex 1-4 unit residential properties less than $250,000
Short lived depreciation - Answers Years old (age) divided by life expectancy equals depreciation.
Replacement cost new times depreciation rate equals dollar amount of depreciation
Extraction method of site valuation - Answers A method of estimating land value in which the
depreciated cost of the improvements on the improved property is calculated and deducted from the
total sale price to arrive at an estimated sale price for the land
Credible results - Answers USPAP says a cost approach must be developed when it is necessary for
, Property tax assessment - Answers Assessed price (134 (thousands)) times (x) rate per thousand ($9.55)
equals (=) total property taxes ($1,279.70)
School building - Answers An example of special purpose property
FEMA - Answers prepares flood maps
Sales comparison approach - Answers The most commonly used approach for valuing sites
GRMs - Answers Derived by dividing sale price by the property's gross monthly unfurnished market rent
Parging - Answers A cement mixture that is applied to the exterior of a concrete block foundation wall
Extraction method to Find land value - Answers Sale price-reproduction cost=difference reproduction
cost x depreciation + or - difference (when reproduction cost is less than sale price add difference when
reproduction cost is more than sale price subtract difference
Cost approach to property value - Answers Reproduction or replacement cost new minus depreciation,
plus site value equals
Replacement cost - Answers If a cost manual is used the result is
actual age - Answers The URAR sales comparison grid requires you to enter for subject property and
comparables
Dept of Transportation - Answers Obtain traffic counts from
Determine highest and best use - Answers Physically possible, economically feasible, and legally
permitted
Front foot - Answers Waterfront property is usually valued on a basis of price per
Substitution - Answers The basic principle underlying the cost approach is the principle of
Prospective appraisal - Answers An appraisal with an effective date at some point in the future is called
Specific data sources - Answers Tax maps, deeds, assessor's records
Cash equivalency - Answers A comparable property sells with atypical financing adjustments need to be
made for
Unit cost - Answers Sale price-site value-site improvements / GLA
Principle of contribution - Answers The most important principle when estimating the amount of
adjustments for differences among properties
Reproduction cost by cost index - Answers Cost index at time of sale divided by current cost index. 100-
difference= percent increase. Percent increase x sale date price. Price + increase $ amount =
