Basic Appraisal Procedures

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building permits and worker's compensation are examples of
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Terms in this set (76)
the relationship or ratio between the sale price or value of a property and its gross annual rental incomegross income multipliera 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?500,000 - 12 + 48 = 60 years, 12/60 = .2 625,000*.2 = 125,000 depreciation 625,000-125,0000 = 500,000today the _______ technique of site valuation is used primarily in highest and best use analysisland residualif a comparable property sells with atypical financing, we may have to make an adjustment forfinancing termsdepreciation is defined as "a loss in property value from ....any causewhich would NOT be a form of concurrent ownership?tenancy in severaltythe anticipated income from all operations of the real estate after an allowance is made for vacancy and collection losses and an addition is made for any other incomeeffective gross incomethe most commonly used method for valuing sites is thesales comparison methodGLA includes _______________ but not _______________.above grade finished area, garagesDrilled wells need to use __________ until the drilling enters ___________.casing, bedrockthe most common type of framing in residential construction today isplatform framethe most complex method of site valuation is thesubdivision development methodwhich site valuation methods should only be utilized when the subject property is income-producing by nature?land residual and ground rent capitalizationwhich was the earliest form of electrical wiring?knob and tubeearly ductless heating systems were calledgravity systemsmost residences today require an electrical service that is a minimum of100 ampswhich would NOT be a sub-step in defining the problem?highest and best use analysisall of the following could be sources of general data exceptzoning ordinancesfannie mae says the appraiser must base his analysis and any adjustments to comparable sales onmarket dataEIFS is also known assynthetic stuccowhen appraising a 2-4 unit residential property, an appraiser would measure and usegross building areaa cement mixture that is applied to the exterior of a foundation wall is calledpargingan old gas station on a good corner location in a desirable older neighborhood recently sold for $375,000, reproduction cost of the improvements today would be $350,000, and the total depreciation is estimated to be 75%, what is the land value?350,000 X .25 = 87,500 375,000-87500 = 287,500an appraisal with an effective date at some point in the future is called anprospective appraisalmodular homes are constructed to meetstate and local code requirementsthe first step in the valuation process isdefine the problemfannie mae says the cost approach isoptionalparging is used on which kind of foundation wall?concrete blockthe Fannie Mae single family comparable rent schedule is designated asFORM 1007when 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 1007in 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 ____$1M, $250,000footings need to beat least 12 inches below average frost penetration levelsthe URAR from can be used to report the appraisal of which of the following properties?all of the abovefunctional obsolescence could be caused by all of the following except:deferred maintenancea house cost $395,000 to build new, 5 years old and has sustained a total of 10% depreciation, sits on a lot worth $65,000, what is its indicated value by the cost approach?395,000-39,500(10%) + 65,000 = 420,500market condition adjustments should always be calculated from the time of the ____ to the _____contract, effective date of the appraisalin the age-life method of estimating deprecation, the ______ age is divided by the ______ lifeeffective age, total economic lifethe cost estimating method most commonly used by residential appraisers is thecomparative-unit methoda 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?350,000 - 45,0000 = 305,000, 15/65 = 23.1%, 305,000*.231 = 70,455, 305,000 - 70,455 = 234,545the URAR sales comparison grid requires you to enter in the ______ age of the subject property and comparablesactuala _______ home is built in accordance with the HUD codemanufacturedthe most common heating system in residential construction today areforced warm aira 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 if $20,000 and depreciation on the short lived items has been identified totaling $4850. what is the amount of long-lived depreciation attributable to the building?12+38 = 50 years total economic life. determine cost of long-lived items by subtracting deferred maintenance and short lived items cost from total replacement cost: 212,340 - 670 - 20000 = 191670. determine depreciation percentage by dividing effective life by total economic life: 12/(12+38 = 50) = 24%. multiply the cost of the long-lived items by the depreciation percentage: 191760*24% = 46,000which entity produces the most commonly-used land appraisal report form?it is a generic formthe 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:replacement costKeyways are employed in which type of foundation walls?poured concretea ______ home has a permanent steel chassis, wheels and axlesmanufacuturedthe cost approach formula states that _______ minus depreciation ______ equals property valuecost new, plus site valuethe 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 systemspercolationa short-lived item is a building component with an ____ life that is shorter than the _____ life of the entire structureexpected remaining economic, remaining economica partial estate could be crated by the existence of all the following exceptcondominiumthe method that treats the land value as a percentage of the total value is theallocation methodit is common in appraisal reports to include a map that shows the location of thesubject property and comparable salesfannie mae requires a single-unit residential appraiser report to include photographs ofthe subject property and the comparable salesmultiple listing services can be utilized for gathering ....both general and specific dataseparate site valuations would likely be required in which of the following situations?any of the above - cost approach, condemnation appraisals, highest and best use analysiswhen describing roofing shingles, a "square" contains _____ square feet100the total period a building lasts or is expected to lastphysical lifeimproved land or a lot in a finished state so that it is ready to be used for a specific purposesiteGRMs are derived by dividing the __________ by the property's ___________ at the time of price, gross monthly unfurnished market rentthe first step in the valuation process isdefine the problemthe 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 materialsreproduction costsegregated cost method is another name for theunit-in-place methodall of the following would be considered short-lived items exceptfoundationthe 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 materialsreproductionprice per room is a common unit of comparison when appraising2-4 unit residential properties