Basic Appraisal Procedures, test review

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"The age of property that is based on the amount of observed deterioration and obsolescence it has sustained" is the definition of ____________ age.
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Terms in this set (127)
"The age of property that is based on the amount of observed deterioration and obsolescence it has sustained" is the definition of ____________ age.
effective
In what type of heating system would you find an expansion tank?
hot water
Which of the following would be general data?
mortgage rates, unemployment rates, property tax rates
A comparable new house just sold for $440,000. You estimate the value of the site at $90,000 and the cost of the site improvements at $15,000. It has 2,885 square feet of GLA. What is its unit cost?
$116.12
"A method of estimating land value in which the depreciated cost of the improvements on an improved property is calculated and deducted from the total sale price to arrive at an estimated sale price for the land" is the definition of the ___________ method of site valuation.
extraction
A factory-built house constructed in compliance with the HUD code is _________ home.
manufactured
Appraisal fees are examples of _______________ costs.
indirect
The most common unit of comparison for land in rural areas is price per _______.
acre
Which entity produces the most commonly-used land appraisal report form?
it is a generic form
Condemnation occurs when a municipality exercises
eminent domain
"A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis" is the definition ofhypothetical conditionUSPAP says a cost approach must be developed when it is necessary forcredible resultsConstruction materials and workers' wages are examples of __________costs.directYou examine a construction contract to build a 2,448 square foot house and the total cost is $197,450. What was the cost per square foot?$80.66Most residences today require a minimum of _____ amps.100Footings need to be _______________ below average frost penetration levels.at least 12 inchesIn the sales comparison approach, sales data on __________ sales should be collected.at least three"Real property for which the expansion, redevelopment, or reuse of the real estate may be complicated by the presence of environmental contamination that needs to be remediated to appropriate regulatory standards " is the definition ofbrownfieldWhat unit of measurement is typically used for single-family homes?gross living areaKeyways are employed in which type of foundation walls?poured concreteThe "summation approach" is another name for the _______________ approach.costIn most residential appraisals, the appraiser valuessiteA building was constructed in July 2000 for $654,200. The cost index at that time was 138.5. The current cost index is 221.8. What is the indicated reproduction cost of the building today?$1,046,720Separate site valuations would likely be required in which situations?cost approach, condemnation appraisals, highest and best use analysisA comparable sale of a new house just sold for $640,000. You estimate the value of the site at $120,000 and the cost of the site improvements at $18,000. It has 2,940 square feet of GLA. What is its unit cost?$170.75Two squares of 180-pound roof shingles would weigh _____ pounds.360The most common type of framing in residential construction today isplatform frameIn the sales comparison approach, we always adjust the _________; we never adjust the ____________.comparable sales, subject propertyFootings should be ________ as wide as the ____________.twice, foundation wallWhat is the most common type of framing currently being used in new homes?platform frameWhen describing roofing shingles, a "square" contains __________ square feet.100Examples of short-lived items:roof covering, water heater, carpetingWhen 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?96.3A building was constructed in July 2000 for $754,200. The cost index at that time was 133.6. The current cost index is 201.8. What is the indicated cost new of the building today?$1,138,842Architectural and engineering fees are examples of _____________ costs.indirectA _______________ home has a permanent steel chassis, wheels and axles.manufacturedFannie Mae requires a single-unit residential appraisal report to include photographs ofthe subject property and comparable sales40 of 60 - A deed could provide all of the following information about a property EXCEPTzoning (what a deed does provide: owner of record, easements, deed restrictions)Multiple listing services can be utilized for gathering _______________.both general and specific dataWhich type of depreciation occurs off the site?externalAn appraiser encounters an underground storage tank and there are no signs of leakage or failure. An appraisal could be performed under the presumption that the tank is not leaking and the property is not contaminated. This would be an example of a(n)extraordinary assumptionThe most common unit of comparison for land in urban areas is price per _______.square footAn 8-unit apartment building has 5 units rented at $850 per month and 3 units rented at $925 per month. What is its gross income?$84,300A mortgage in which a party other than the borrower assumes payment in the event of default is a(n) _____________ mortgage.guaranteed"The type of data and the extent of research and analyses" is the definition ofscope of workEach written appraisal report must contain the dateof the report and the effective date of the appraisal"The total period a building lasts or is expected to last..." is the definition of _________ life.physicalWhich of the following would NOT be a common adjustment when appraising land?qualityWhich of the following WOULD be a common adjustment when appraising land?size, shape, topographyThe ground rent capitalization method should only be used when appraising a property that isincome-producing or suitable for income productionWhen measuring a condominium you should calculate ____ using _______ measurements.GLA, interiorMarket condition adjustments should always be calculated from the time of the ________ to the ___________.contract, effective date of the appraisalA property has a cost new of $350,000. It has an effective age of 20 years and a total expected economic life of 65 years. There are curable items totaling $45,000. If they are cured, it will reduce the effective age to 15 years. What is the value of the improvements on a modified age-life basis, before including the site value?$234,545"An element of comparison in the sales comparison approach; comparable properties can be adjusted for differences in the motivations of either the buyer or a seller in a transaction" is the definition ofconditions of saleThe identification of relevant characteristics is a judgment made bythe appraiserA house is rented for $1,050 per month, but lacks air conditioning. Comparable houses with air conditioning, rent for $1,100 per month. The appropriate gross rent multiplier is 75. By the capitalized value method, how much is the depreciation attributable to the lack of air conditioning?$3,750Which was the earliest form of electrical wiring?knob and tubeIf an appraiser uses a cost manual to estimate cost new for a property, the result isreplacement costSegregated cost method is another name for the _________ method.unit-in-placeThe most complex method of site valuation is the _______________ method.subdivision developmentThe _______________ method has good application in valuing land in rural areas and in older, urban areas.extractionSoil maps produced by the Natural Resources Conservation Service are based onaerial mapsThe results of a _________ test will determine if there is suitable drainage and the size of the drain field that will be required for a septic system.percolitionWhen the property being appraised is a one-family property that will be used as an investment property, Fannie Mae requires that the appraiser must prepare a ______________.form 1004 and form 1007If a cost manual is used, the result is _____________ cost.replacementA short-lived item is a building component with an ___________ life that is shorter than the ___________ life of the entire structure.expected remaining economic, remaining economicAn old gas station on a good corner location in a desirable older neighborhood recently sold for $375,000. The reproduction cost of the improvements today would be $350,000 and the total depreciation is estimated to be 75%. What is the land value?$287,500"The relationship or ratio between the sale price or value of a property and its periodic gross rental income" is the definition ofgross rent multiplierWhen estimating the amount of adjustments for differences among properties, the most important principle is the principle of _______________.contributionFannie Mae says the cost approach ____________________.is optional"The actual rental income specified in a lease" is the definition of ___________ rent.contractA house has a total cost new of $212,340. It is 12 years old and has an estimated remaining economic life of 38 years. The cost to cure deferred maintenance items is $670. Short lived items Cost is $20,000 and depreciation has been identified totaling $4,850 for short-lived items. What is the amount of long-lived depreciation attributable to the building?$46,000A cement mixture that is applied to the exterior of a foundation wall is calledpargingAn example of a special purpose property would be a(n)school buildingAll of the following could be sources of general data EXCEPTzoning ordinancesAll of the following could be sources of general datautility companies, school districts, departments of transportationThe most common heating systems in residential construction today areforced warm airIn the age-life method of estimating depreciation, the ___________ age is divided by the ____________ life.effective age, total economic lifeEIFS is also known assynthetic stuccoPrice per room is a common unit of comparison when appraising2-4 unit residential propertiesThe SCOPE OF WORK RULE says that in each real property appraisal assignment, the appraiser must _______ the problem to be solved, and determine and perform the scope of work necessary to develop ________ assignment results.identify, credibleThe ________ approach is particularly applicable in the appraisal of special purpose properties.costThe most commonly used approach for valuing sites is the ____________ approach.sales comparison approachWhich type of valuation analysis would typically NOT include a separate site valuation?gross rent multiplierA partial estate could be created by the existence of all the following EXCEPTcondominiumThe cost estimating method most commonly used by residential appraisers is the ____________ method.comparative-unitFunctional obsolescence could be caused by all of the following EXCEPTdeferred maintenance"Data that relates to the four forces that affect real property values—social, economic, governmental, and environmental forces" is the definition ofgeneral dataWhich of the stages in the life cycle of a market area does not always occur?revitalizationAn appraisal with an effective date at some point in the future is called a(n) ___________ appraisal.prospective"The amount by which contract rent exceeds market rent at the time of the appraisal...." is the definition of __________ rent.excess"The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease" is the definition of _______________.leasehold interestIt is common in appraisal reports to include a map that shows the location of the _______________.subject properties and comparable salesWhat type of framing became popular in the 1800s with the advent of the steam-powered sawmill?balloon frameFill, grading and permits are examples of improvements that create asiteDevelopers often value land on a basis of price perbuildable unitAn expansion tank is part of a ___________ heating system.hot waterProperty that fronts on a lake is usually valued on a basis of price perfront footIn a market value appraisal, every comparable sale should have been sold in an _______________ transaction, with no undue _______________.arms-length, duressThe cost approach formula states that ______________, minus depreciation, _______________, equals property value.cost new, plus site valueA property sold for $200,000. There was a $20,000 down payment and the rest was in the form of a 30-year mortgage at 6% interest. The seller paid 3 points at the closing. How much was that?$5,400A management fee usually is based on a percentage of the _________ income.grossAn appraiser must not allow the intended use of an assignment or a client's objectives to cause the assignment results to be __________.biasedRanking analysis is a form of __________ analysis.qualitativeThe valuation process is a systematic procedure employed to provide the answer to a(n) _______ question about the value of _________.client's, real propertyWhen appraising a duplex, an appraiser should use __________ area.gross building"A method used to convert future benefits into present value by discounting each future benefit at an appropriate yield rate or by developing an overall rate that explicitly reflects the investment's income pattern, value change and yield rate" is the definition ofyield capitalizationThe most common brownfield contaminant ispetroleumAn estimate of remaining economic life is required byVA (Veterans Association)GLA includes _______________ but not _______________.garagesWhat is another name for "indirect costs"?soft costsFlood maps are prepared byFEMAWhich site valuation methods should only be utilized when the subject property is income-producing by nature?land residual and ground rent capitalizationIn a federally related transaction, a licensed residential appraiser is permitted to appraise non-complex 1-4 unit residential properties with a transaction value of less than ________ and complex 1-4 unit residential properties with a transaction value less than _________.$1,000,000; $250,000What are the three general types of depreciation?physical, functional, external"The estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvements, using modern materials and current standards, design, and layout" is the definition of__________ cost.replacementWhich cost estimating method is the most detailed and time-consuming to develop?quantity survey"Improved land or a lot in a finished state so that it is ready to be used for a specific purpose" is the definition ofsiteExamples of sources of general data:utility companies, school districts, departments of transportationAnother name for girder isbeamA dwelling has a reproduction cost of $625,000. It is 10 years old and has an effective age of 12. Its remaining economic life is estimated to be 48 years. What is the depreciated value of the improvements by the age-life method, before including the site value?12/(12+48) = 0.2; $625,000 x 0.2 = 125,000. $625,000 - 125,000 = >>$500,000.Drilled wells need to use __________ until the drilling enters ___________.casing, bedrock"An amount paid for the use of land, improvements or a capital good" is the definition ofrentWhich would NOT be a sub-step in defining the problem?highest and best use analysisA 5 year old water heater with an expected life of 12 years and a replacement cost of $825 will have experienced depreciation of $__________.$344.03"The estimated cost to construct, at current prices as of the effective appraisal date, an exact duplicate or replica of the building being appraised, using the same materials..." is the definition of _______________ cost.reproductionBuilding permits and worker's compensation are examples of __________costs.direct