BASIC APPRAISAL PROCEDURES MCKISSOCK
TEST BANK 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
◉ Separate Site Valuations. Answer: Cost approach
Assessments and taxation
Condemnation appraisals
Certain income capitalization methods
Highest and best use analysis
◉ Cost Approach (summation approach). Answer: Site Value +
Depreciation
◉ Depreciation. Answer: Cost New
◉ SALES COMPARISON. Answer: Comparison with recent sales--
Most Commonly Used--Most Accurate--Must have adequate market
data--adjustments to the comparable sales may be made either on a
quantitative or qualitative basis--Quantitative adjustments are usually
made on a percentage or dollar basis.
,◉ EXTRACTION. Answer: Subtracts estimated improvement value to
arrive at land value
◉ ALLOCATION. Answer: Uses land-to-value ratios based on
improved sale comparables
◉ SUBDIVISION DEVELOPMENT. Answer: Subtracts estimated
development costs from discounted sale proceeds
◉ LAND RESIDUAL. Answer: Divides up and capitalizes the income
between land and improvements
◉ GROUND RENT CAPITALIZATION. Answer: Capitalizes income
from leased land
◉ PAIED DATA ANALYSIS. Answer:
◉ Quantitative adjustments. Answer: usually made on a percentage or
dollar basis
Percentage Adjustments and Market Conditions
◉ Units of Comparison. Answer: Price per square foot
Price per acre
Price per front foot
, Price per lot
Price per buildable unit
Price per animal unit
◉ Price Per Square Foot (Suburban/Urban). Answer: Sales Price/Total
SF= $/1SF
◉ Price Per Acre (Rural Ares/Large Lots). Answer: Sales Price/Total
Acres= $/Acre
◉ Price per Front Foot (Waterfront/Commercial Roadway). Answer:
Sales Price/ FF= $ FF
◉ Mass appraisals. Answer: 1. The application of computer technology
and statistical techniques to the solution of appraisal problems; used in
assessment administration to derive value indications in the cost and
sales comparison approaches and to perform other functions, e.g.,
assessment ratio analysis.
2. A system of appraising property, usually only certain types of real
property, that incorporates statistical analyses such as multiple
regression analysis and adaptive estimation procedure to assist the
appraiser in estimating value. (IAAO)
◉ Extraction Method (Abstraction Method)
Rural Areas--Large Lots-Less Sales
TEST BANK 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
◉ Separate Site Valuations. Answer: Cost approach
Assessments and taxation
Condemnation appraisals
Certain income capitalization methods
Highest and best use analysis
◉ Cost Approach (summation approach). Answer: Site Value +
Depreciation
◉ Depreciation. Answer: Cost New
◉ SALES COMPARISON. Answer: Comparison with recent sales--
Most Commonly Used--Most Accurate--Must have adequate market
data--adjustments to the comparable sales may be made either on a
quantitative or qualitative basis--Quantitative adjustments are usually
made on a percentage or dollar basis.
,◉ EXTRACTION. Answer: Subtracts estimated improvement value to
arrive at land value
◉ ALLOCATION. Answer: Uses land-to-value ratios based on
improved sale comparables
◉ SUBDIVISION DEVELOPMENT. Answer: Subtracts estimated
development costs from discounted sale proceeds
◉ LAND RESIDUAL. Answer: Divides up and capitalizes the income
between land and improvements
◉ GROUND RENT CAPITALIZATION. Answer: Capitalizes income
from leased land
◉ PAIED DATA ANALYSIS. Answer:
◉ Quantitative adjustments. Answer: usually made on a percentage or
dollar basis
Percentage Adjustments and Market Conditions
◉ Units of Comparison. Answer: Price per square foot
Price per acre
Price per front foot
, Price per lot
Price per buildable unit
Price per animal unit
◉ Price Per Square Foot (Suburban/Urban). Answer: Sales Price/Total
SF= $/1SF
◉ Price Per Acre (Rural Ares/Large Lots). Answer: Sales Price/Total
Acres= $/Acre
◉ Price per Front Foot (Waterfront/Commercial Roadway). Answer:
Sales Price/ FF= $ FF
◉ Mass appraisals. Answer: 1. The application of computer technology
and statistical techniques to the solution of appraisal problems; used in
assessment administration to derive value indications in the cost and
sales comparison approaches and to perform other functions, e.g.,
assessment ratio analysis.
2. A system of appraising property, usually only certain types of real
property, that incorporates statistical analyses such as multiple
regression analysis and adaptive estimation procedure to assist the
appraiser in estimating value. (IAAO)
◉ Extraction Method (Abstraction Method)
Rural Areas--Large Lots-Less Sales
