TEXAS SAE: REAL ESTATE APPRAISAL EXAM WITH COMPLETE SOLUTIONS

TEXAS SAE: REAL ESTATE APPRAISAL EXAM WITH COMPLETE SOLUTIONS Which two terms are synonymous and are defined as the amount of rent typical for properties that are comparable to the subject property? Economic rent, market rent Which of the following properties would you expect to appraise highest? Q1, C1 There are many advantages to holding property within a trust. One of the most important advantages is that some trusts ______. Avoid probate Ken, Barbie, and Skipper owned a property as a joint tenancy. When Skipper moved out of state, she sold her interest to Midge. Two years later, Ken died. How is the interest in the property divided? Barbie owns two-thirds, and Midge owns one-third. Why would an appraiser use gross income multiplier, direct capitalization, or yield capitalization—rather than gross rent multiplier—to determine the value of an income property? The property has income from other sources in addition to rent. A young professional couple from out of state have been referred to you. The couple knows nothing about the area and would like some demographic information before they buy a home in the area. Basically, they’d like a breakdown by age of the population. Which of the following would be the best tool to present this information? Pie chart Which of the following statements about a property owner placing a restriction on a deed is true? The owner may place a time limit on the restriction. A restriction may run with the land forever (appearing on all future deeds), or it may have a time limit. What’s another name for the building plan? Blueprint When a large tract of land is purchased and prepared for development, and then split into parcels, the value of each lot as a residential building site must be determined. The method used to value each individual parcel is known as the ______ method. Subdivision development What are improvements with regard to property? Artificial attachments to land that include items such as fencing, buildings, and walkways You are viewing a home with a buyer client. When you open one of the bedroom closets, you find a piece of paper with some information stuck to the inside of the door. What have you most likely discovered? The home is a manufactured home and this is the data plate. What type of window design is similar to window blinds? Jalousie Sally is looking at average home prices in her area over the last 10 years. The graph of the data makes it especially easy to see the changes over time. What type of graph is most likely being used to present this data Line graph When following the Uniform Standards of Professional Appraisal Practice process for real estate appraisal, an appraiser will _________ after determining the subject property’s highest and best use. Estimate value of the land Which of these situations requires the services of a state-licensed or state-certified appraiser? A lender needs an appraisal for a federally related transaction. How is the adjusted sales price calculated for a comparable property using the sales comparison approach? By adding or subtracting the sum of the adjustments made on a comparable property When using the sales comparison approach, appraisers add or subtract the net adjustment (the sum of adjustments for a property) from the sale price of a comparable to get an adjusted sale price. The fewer properties on the market, the greater the scarcity. What's the effect on prices? Prices are pushed upward. Maxwell is a tenant. His lease has a fixed rent in which the landlord pays all taxes, insurance, and maintenance expenses. What type of lease does he have? Gross In a gross lease, the tenant pays a fixed rent, and the landowner pays taxes, insurance, and maintenance expenses for the property. Which types of REITs don’t buy properties but instead invest in real estate debt? Mortgage REITs Which land valuation method uses the amount of ground rent the land will generate, and then capitalizes that income into a value for the land using a capitalization rate? Ground rent capitalization method The ground rent capitalization method can be used to estimate land value when a ground lease exists or when the land is vacant. When do clients typically opt for the Exterior‐Only Inspection Residential Appraisal Report (Form 2055)? When there’s a very low loan-to-value ratio This report is often called a “drive by,” because the scope of work the client requires includes fewer steps than other types of reports. Which of these should tenants keep in mind regarding trade fixtures? Installation and removal should not cause damage to the property. Philip owns land in a state where growing marijuana is illegal. He wants to set up a small marijuana growing operation and export to states where marijuana has been legalized. He asks his attorney about the possibility. “No,” his attorney explains. “It’s not possible. Although you own the property outright, the right of ______ only allows you to manage the property in ways that are legal in this jurisdiction Control Lenders can submit electronic appraisal reports, such as the Uniform Residential Appraisal Report through what tool on the Fannie Mae website? Uniform Collateral Data Por