Basic Appraisal Procedures Questions and Updated Answers 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 $252,000 - 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? leave it as one parcel - 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? 2-4 unit residential properties - Price per room is a common unit of comparison when appraising 96.3 - 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? gross income multiplier - "The relationship or ratio between the sale price or value of a property and its gross annual rental income" is the definition of direct - Building permits and worker's compensation are examples of __________costs. guaranteed - A mortgage in which a party other than the borrower assumes payment in the event of default is a(n) _____________ mortgage. conductors, insulators - Materials that transfer energy quickly are called __________ and those that transfer energy slowly are called __________. +$10,000 - In your sales grid, you made adjustments of +$5,000, +$3,500, -$2,500, + $8,000, and -$4,000. What is your net adjustment?