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Basic Appraisal Procedures

Terms in this set (308)

True or False: There is one universal definition of market value used in real property appraisal.

"An assignment-specific assumption, as of the effective date, which, if found to be false, could alter the appraiser's opinions or conclusions" is the definition of

extraordinary assumption

"An interest or interests in real estate" is the definition of

True or False: An appraiser's client must always directly engage the appraiser.

True or False: HUD/FHA requires an appraiser to verify all comparable sales data used in an appraisal.

An appraisal report must contain sufficient information to allow ________ to understand the scope of work.

An appraiser must be prepared to demonstrate that the scope of work is sufficient to produce

credible assignments results

True or False: All three approaches to value must be used in every real property appraisal.

"The type and extent of research and analyses in an appraisal or appraisal review assignment" is the definition of

What is the last step in the valuation process?

Report the final opinion of value

According to USPAP, the credibility of assignment results is measured ______________.

within the context of intended use

A property's known zoning is Residential, but an appraiser values it on the basis of its zoning being Commercial. Proper disclosures are made in the report. The appraiser has used __________ in this appraisal.

A hypothetical condition

What is the first step in the valuation process?

Define the problem

The SCOPE OF WORK RULE says that "the appraiser must be prepared to demonstrate that the scope of work is sufficient to produce _________________"

credible assignments results

The valuation process is a systematic procedure employed to provide the answer to a(n) ________ question about the value of __________.

client's, real property

"Documentation necessary to support an appraiser's analyses, opinions, and conclusions" is the definition of

The effective date of value can be

a present, past, or future date

Scope of work applies to

Both appraisals and appraisal review assignments

The party or parties who engage, by employment or contract, an appraiser in a specific assignment is the

Valuation Process

a systematic set of procedures an appraiser follows to provide answers to a client's questions about real property value

Steps in the Valuation Process

1. Define the problem
2. Determine the Scope of Work
3. Gather, record, and verify the data
4. Determine the highest and best use
5. Estimate the land value
6. Estimate the value by each of the three approaches (if applicable)
7. Reconcile the estimated values into the final opinion of value
8. Report the final opinion of value

The party or parties who engage, by employment or contract, an appraiser in a specific assignment

Information on employment and unemployment trends in an area would be considered

Which influences typically exert the greatest pressure on property values?

local influences

When completing an appraisal assignment, comparable sales information that the appraiser gathers would be considered _________ data.

True or False: General data tends to influence all properties in an area equally.

Information on tax rates in an area would be considered

The largest source for demographic information is

U.S. Bureau of the Census

True or False: Government data sources for general data are found on a national level only.

Which zones are identified by FEMA as Special Flood Hazard Areas?

Which of these items would NOT be typically found in the deed for the subject property?

zoning classification

FEMA stands for

Federal Emergency Management Agency

You check the FEMA flood map, and the subject property is located in Zone C. Is this a Special Flood Hazard Area (SFHA)?

In residential mortgage lending appraisals, it is more common for lenders and AMCs to ask for _________ maps to be included in appraisal reports.

True or False: The usefulness of MLS information can be dramatically increased through verification with a selling or listing agent.

You can obtain topographic maps from

The largest repository of demographic information in the U.S. is the

Comparable sale and rental properties would be considered ________ data.

Which of these organizations is responsible for preparing flood maps for U.S. communities?

The external forces that exert the most pressure are generally at the __________level.

"Data that relates to the four forces that affect real property values—social, economic, governmental, and environmental forces. This type of data is usually not specific to any particular property but is applicable in many assignments of similar types of properties. Also known as macro-level data" is the definition of

Who is the primary intended user for MLS information?

agents and brokers

Bureau of Economic Analysis

Which of these organizations conducts extensive research on current construction trends?

Which appraisal term is defined as: "Details about the property being appraised, comparable sale and rental properties, and relevant local market characteristics"?

Which of the following pieces of information would MOST likely be found in the deed?

Current owner of record

Which of these is the best source for traffic count information?

Department of Transportation

It is common in appraisal reports to include a map that shows the location of the ____________.

subject property and comparable sales

A deed will typically provide information on all of the following EXCEPT

Which of the following would NOT be considered general data?

subject property tax assessment

Specific data would include:

True or False: The difference between land and site is that land is improved, while site is not.

A 1-acre vacant land parcel is worth $90,000 as a single family homesite, $45,000 per unit as a site for a duplex, or $2.50 per square foot as a site for an industrial building. What is the highest and best use of the property?

industrial building site

"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 of

A rectangular parcel of land has 114 feet of frontage and is 222 feet deep. It sold for $280,000. What did it sell for per front foot?

True or False: GPS systems can be used to locate vacant land parcels.

True or False: The extraction method of site valuation typically has good applicability in older urban areas.

Which method of site valuation is based on a typical ratio of land value to total property value?

An appraiser has valued a subject property at $320,000. The appraiser's research indicates that site values in the subject's area are typically 20% of property values. What is the indicated value of the subject's site by the allocation method?

Another name for the extraction method of site valuation is

The tax rate per thousand in a municipality is $12.80. If the property taxes are $1,984 for a particular property, what is the property's assessed value?

The ___________method has good application in valuing land in rural areas and in older, urban areas.

Developers usually value land on a basis of price per

A parcel is valued at $450,000 as a single entity. Zoning allows it to be subdivided into 8 lots and it is estimated that each lot could sell for $60,000. Site development costs (sewer, grading, road, etc.) would cost $50,000. What is the highest and best use?

Leave it as one parcel

Property that fronts on a lake is often valued using what unit of comparison?

Price per front foot

A property contains 2.1 acres and is worth: A. $115,000 as single home site B. $40,000 per unit as a site for a triplex and C. $60,000 per acre as a retail site. All uses are physically possible, economically feasible and legally permitted. Which is the highest and best use?

A commercial site currently rents for $4,000 per month. The applicable land capitalization rate is 6%. What is the value of the site by the ground rent capitalization method?

The most common source of brownfield contamination is

A site is currently rented for $600 per month and the ground rent capitalization rate is 7.5%. What is the indicated value of the site?

A property sold for $50,000. The reproduction cost of the building was $80,000 and it was 60% depreciated. By extraction, what is the value of the land?

Property in built-up urban residential areas is usually valued on the basis of price per

The summation approach is another name for the _________ approach.

Sidewalks, curbs, and landscaping are examples of

site improvements

What is the power of a government entity to take private property for the public good?

The ground rent capitalization method is most applicable when appraising which of the following __________.

land under a McDonalds restaurant where McDonalds owns the building

Which of these is NOT a technique used for site valuation?

Breakdown method

What is another name for the cost approach?

Summation approach

True or False: Modular homes have no permanently attached tags or labels that identify them as modular homes.

Which type of home is built to meet the HUD Code?

manufactured home

Which architect is known for one-story "prairie style" homes?

Frank Lloyd Wright

The HUD label on a manufactured home

is a metal tag on the outside of the home

The Manufactured Home Construction and Safety Standards is also known as the

Fannie Mae states that in calculating the gross living area (GLA) of a detached home, an appraiser must use __________ measurements.

Footings should be at least _____________ average frost penetration levels.

In framing, __________ are constructed above window and door openings.

Roof slope is expressed as ____________ over ___________.

True or False: Balloon framing has replaced platform framing as a modern building technique.

U-shaped traps are installed under every plumbing fixture in order to

prevent sewer gases from venting back into the house

Which of these is NOT a disadvantage of hot water heat?

it is inefficient and creates drafts and dust

True or false: Heat pumps are essentially reversible air conditioners.

True or False: HVAC is an acronym that stands for Heating, Ventilating, and Air Conditioning systems.

The most common type of heat system in new construction today is

forced warm air

In electricity, voltage measures __________ , while amperage measures __________ .

pressure, volume

In a home's plumbing system, grey water comes from

sinks and laundry

What type of wiring is most commonly found in new residential construction?

plastic coated or Romex

"Total area of finished, above-grade residential space; calculated by measuring the outside perimeter of the structure and includes only finished, habitable, above-grade living space" is the definition of

gross living area

You are appraising a single-unit detached dwelling. How would you measure the gross living area?

Using exterior measurements

Slab-on-grade foundations are most popular in the ______________.

South and Southwest

The modern "central" heating system with one central furnace didn't appear until around ________.

Which of these is NOT a source of grey water in a house?

An expansion tank is part of which type of heating system?

The Natural Resources Conservation Service produces soil maps that are based on

When measuring a condominium unit, you should calculate _____ using ______measurements.

According to the EPA, ______________systems are the "most energy efficient, environmentally clean, and cost effective space conditioning systems available."

geothermal heat exchange systems

Which was NOT true of early pipeless furnaces?

When calculating the gross living area of a dwelling, you would NOT include:

Covered porches

Which of these is the most recent type of siding?

True or False: If the sales comparison approach cannot be developed because of a lack of sales data, the cost approach cannot be developed either.

After an appraiser estimates cost new, he/she subtracts ____________ then adds _______________ to arrive at an indicated value by cost approach.

depreciation, site value

True or False: The cost approach is most applicable in situations where the site value is not well-supported.

The cost approach would likely be MOST applicable in a situation where

the subject is a special purpose property

Which of these would be considered an indirect cost when constructing an office building?

lease-up costs to achieve occupancy

Financing costs and marketing costs necessary to achieve occupancy are examples of ____________ costs.

When a published cost manual is used, the result is ____________ cost.

Which would be an example of a direct cost when constructing a building?

building permit

Of the traditional methods of cost estimating, the least complicated and least accurate method is the _________ method.

comparative-unit

True or False: Most appraisers do not possess the level of expertise needed to apply the quantity survey method of cost estimating.

A rectangular-shaped two-story home measures 28 feet by 40 feet. How many lineal feet are there in the foundation?

Which of these is NOT one of the traditional cost estimating methods?

direct-indirect

Fannie Mae says the cost approach _______________.

A building was constructed in August 1999 for $2,340,000. The cost index at that time was 192.3. The current cost index is 302.1. What is the indicated cost new of the building today? (Round the index to 2 decimal places)

You are performing the cost approach on an old house. By engaging in painstaking research, you are able to estimate the cost to construct an exact duplicate of the house, using all the actual materials that were used in its construction. What type of cost have you estimated?

Reproduction cost

Appraisal, accounting and legal fees are examples of ____________ costs.

"A loss in value from any cause" is the definition of what appraisal term?

You read a construction contract for a new house and its cost is $675,330. It has 3,150 square feet. What is its construction cost per square foot?

"Expenditures for the labor and materials used in the construction of improvements" is the definition of

_______________ is defined as "a loss in property value from any cause."

Another name for soft costs is ________.

The most popular cost service among residential appraisers is

Marshall & Swift

The most comprehensive and accurate method of cost estimating is the ___________ method.

quantity survey

Most fire and casualty insurance is written to pay an amount equal to the _______________ cost of the structure.

Which type of depreciation is generally considered to be incurable?

external obsolescence

In most situations, which of these would be considered an example of a superadequacy?

Which of these is NOT a cause of functional obsolescence?

deferred maintenance

A 10-year-old house will always have

physical deterioration

Depreciation is defined as a loss in property value from

The difference between the cost of an improvement and its market value on the effective date of the appraisal is

True or False: A building may be obsolete and valueless even though it is still standing and is physically sound.

A building has an effective age of 25 and a total economic life of 80 years. What is its remaining economic life?

The number of years that have elapsed since a building was constructed is its

A building has an effective age of 18 and a total economic life of 60 years. It cost $520,000 new and its site value is $125,000. What is the indicated percentage of age-life depreciation?

A property is found to suffer $20,000 in external obsolescence because of its proximity to an industrial plant. The subject's land represents 20% of its value. What is the dollar amount of external obsolescence attributable to the building improvements?

True or False: Physical deterioration can be divided into three categories: deferred maintenance; short-lived components; and long-lived components.

A building has a cost new of $400,000. Deferred maintenance items have been identified at a cost of $9,000. Short-lived depreciation has been identified at $15,000; these short-lived items have a total cost of $45,000. The building has an effective age of 20 years and a total economic life of 50 years. What is the amount of depreciation attributable to the long-lived items?

A hot water furnace in a building costs $22,000 to replace. It has an expected life of 30 years, and it is 24 years old. How much shortlived depreciation is attributable to this item?

The subject is a 25 year old building that would cost $180,000 to build new today. It is in good condition and you estimate the effective age to be 20 years. Your estimate of total economic life is 60 years, based on your knowledge of similar properties. What is its present, depreciated value?

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?

Assume a house would rent for $1,000 per month in a normal neighborhood. In this neighborhood, which is near a busy interstate highway, it can only rent for $950 per month. The appropriate GRM is 135. How much external obsolescence is caused by the highway?

In a high-quality residential property, an unattractive kitchen that does not have enough cabinet space to meet market tastes and demands will likely result in:

Functional obsolescence

A 6 year old water heater with an expected life of 15 years will have experienced depreciation of ____%.

Which of these factors is most likely to cause external obsolescence to a residential property?

A gas station/convenience store located across the street

Which would NOT be a deferred maintenance item?

older roof showing some wear

Which is NOT an example of a long-lived item?

What type of depreciation would be caused by an old industrial facility located adjacent to a newer house?

External obsolescence

External obsolescence can be

When determining how much to adjust for a two-car garage in the sales comparison approach, which valuation principle is of primary importance?

The subject property has 1,200 square feet of GLA, and a comparable sale has 1,400 square feet. What type of adjustment are you likely to make in the sales comparison approach for GLA?

a downward adjustment to the comparable

An appraiser uses five comparable sales, and gets a differing indication of value from each one. What step of the sales comparison process involves considering these indications and arriving at an indication of value for the subject?

reconcile the value indications

Traditionally, appraisers have used a minimum of _____ comparable sales in the sales comparison approach.

"The geographic region from which a majority of demand comes and in which the majority of competition is located" is the definition of

True or False: A market area could encompass an entire state, or several states.

Relative comparison analysis is __________ technique.

What type of analysis is used for elements that cannot be given a numerical value?

True or False: Qualitative analysis is used for elements that cannot be given a numerical value.

Comp A has three bedrooms and sold for $118,000. Comp B has four bedrooms and sold for $125,000. What is the indicated adjustment for a fourth bedroom, using these two paired sales?

Which of these is NOT another name for the sales comparison approach?

sales capitalization approach

In the URAR, concerning verification, you are asked to provide the ____________ and the __________.

data source, verification source

The first step in the sales comparison approach is

research the market

Paired data analysis is an example of _______________ analysis.

The last step in the sales comparison approach is

reconcile the value indicators

Which of the following would NOT be considered a source of specific data?

U.S. Census Bureau

"A neighborhood characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural" is the definition of ____________.

"A numerical (dollar or percentage) adjustment to the indicated value of a comparable property to account for the effect of a difference between two properties on value" is the definition of _______________ adjustment.

The primary principle upon which the cost and sales comparison approaches are based is the principle of ________________.

The only limitation of the sales comparison approach is that _____________.

you need a sufficient number of reliable sales

A market area boundary might be indicated by a change in all of the following EXCEPT

Price per square foot of net leasable area is a common unit of comparison when appraising

"The order in which quantitative adjustments are applied to the sale prices of comparable properties" is the definition of

sequence of adjustments

Susan owns a home on leased land. Which term best describes her ownership interest in the property?

Tenancy in severalty means the property is owned by

In a UAD-compliant appraisal report, how would the date October 30, 2018 be formatted?

A VA mortgage is an example of

a guaranteed mortgage

True or False: Adjustments for market conditions are always negative.

Market conditions adjustments are referred to by some appraisers as _________ adjustments.

True or False: An appraiser can adjust a comparable sale to account for differences in the motivation of the buyer or seller in the transaction.

A buyer purchases a home, knowing that it needs a new roof. The buyer offers $104,000 and anticipates the cost of the roof to be $4,000. The roof actually ends up costing $8,000 because of unforeseen circumstances. How much should this sale be adjusted for expenditures made immediately after purchase?

An appraiser uses a comparable sale that sold as a result of the owner's bankruptcy, and the appraiser adjusts the sale because it is not an arms-length transaction. This is an example of ___________ adjustment.

a conditions of sale

Gross building area (GBA) is used as a unit of measurement for

2-4 unit properties

True or False: In a residential appraisal, the comparable sales must always be located in the same market area as the subject.

Adjustments for physical characteristics could include all of the following items EXCEPT

When calculating room and bathroom count in a residential property, how is a "three-quarter bath" typically counted?

Fannie Mae's guideline for net adjustments is _____% of the sale price of the comparable.

There is no set amount

Which of these items is NOT required by Fannie Mae to be included as an exhibit in an appraisal report?

a copy of the deed or legal description

The Fannie Mae URAR form is designed to report an appraisal of

a one-unit property with accessory unit

True or False: Adjustments in the sales comparison approach for economic characteristics are typically only made for commercial or income-producing properties.

A comparable sale required the following adjustments: +8,000, -4,500, +5,000, -2,000, -1,000. What is the net adjustment?

"The ability of a property or building to be useful and to perform the function for which it is intended according to current market tastes and standards" is the definition of

functional utility

Assume that a house needed a new roof and siding. A buyer has a contractor's estimate of $10,000 to install the roof and siding. An offer of $110,000 for the property was accepted. The work was done immediately after the closing and it wound up costing $12,500. How much should you adjust the sale if you use it as a comparable?

In your sales grid, you made adjustments of +$4,000, +$3,500, - $1,500, + $7,000, and - $2,000. How much is your net adjustment?

Condos in your city sold for a median price of $195,320 twelve months ago and the median price of condos for the current month is $219,540. What is the percentage of change in market conditions?

With real property, the value of the whole __________ the sum of the separate estates or parts.

may be equal to, more than, or less than

Which of these ownership types is NOT a form of concurrent ownership?

Tenancy in severalty

"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 of

conditions of sale

USPAP requires a prior sales history of _______ year(s) for the __________.

three, subject property

"Divided or undivided rights in real estate that represent less than the whole, i.e., a fractional interest such as a tenancy in common, easement, or life interest" is the definition of

partial interest

Market condition adjustments to comparable sales should always be calculated from the time of the _________ to the ____________.

contract, effective date of the appraisal

According to Fannie Mae, all of these are unacceptable appraisal practices EXCEPT

use of comparables that are over six months old

A property is currently rented for $1,200 per month, however market rent is only $1,000. The $200 difference between the contract rent and the market rent is

True or False: If a property is rented, its market rent is always the same as its contract rent.

"A ratio of one year's net operating income provided by an asset to the value of the asset" is the definition of

capitalization rate

Converting an estimate of a single year's expected income into an indication of value is

direct capitalization

The primary difference between direct capitalization and yield capitalization is

direct capitalization uses one year's income; yield capitalization uses several years income

If we subtract vacancy and collection loss from potential gross income, we get

effective gross income

A method of valuing property by discounting the anticipated income stream at an appropriate rate, plus discounting the value of the reversion is

yield capitalization

If an apartment building is operating at only 50% occupancy, this should mean that __________ expenses would be lower.

Which term is defined as: "The actual or anticipated net income that remains after all operating expenses are deducted from effective gross income but before mortgage debt service and book depreciation are deducted"?

Net operating income

A comparable sale sold for $940,000. It had a verified NOI of $122,500. The capitalization rate (Ro) from the comparable sale is calculated as:

The basic formula for income capitalization states that value equals _______________ divided by a __________.

Which method converts a single year's net operating income into an indication of property value?

Direct capitalization

_____________ income is "the 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 income."

Effective gross income

____________ expenses are "operating expenses that generally do not vary with occupancy."

"The income due under existing leases" is the definition of _______________ rent.

A comparable sale sold for $5,495,000. It had an NOI of $605,500. What is the indicated capitalization rate from that sale?

In order for an appraiser to appraise a 5-unit property for a federally related transaction, he/she must be a

certified general appraiser only

True or False: An appraiser would typically not value a 50-unit apartment complex with a gross rent multiplier (GRM).

GRM assumes there is __________ relationship between rental income and value.

a direct linear

Properties with more than _____ living units are considered to be non-residential properties.

certified general appraiser only

True or False: New single-unit homes are frequently purchased as rental investment properties.

True or False: Expense ratio information is easier to obtain on single-unit residential properties than commercial properties.

The primary difference between GRM and GIM is that

GRM uses monthly rent, while GIM uses annual income

True or False: Contract rent and market rent are two different concepts.

When developing an appraisal, you calculate the following GRMs from comparable properties: 94.3, 90.1, 95.6, 109.2, 84.5, 100.7, 99.9. What is the median of the GRMs?

When developing an appraisal, you calculate the following GRMs from comparable properties: 94.3, 90.1, 95.6, 109.2, 84.5, 100.7, 99.9. What is the mode of the GRMs?

there is no mode

A single-family residential property sells for $142,000. At the time of sale it is rented for $1,200. What is the GRM?

"A measure of central tendency identified as the middle value in an ordered array of numerical values ..." is the definition of

Which is a positional average that is not affected by the size of extreme values?

Which can be affected by extremes at either end of the distribution?

An appraiser extracts a set of market rental amounts for houses like the subject. They are $850, $875, $775, $950, $925, and $900. What is the mean of the market rents?

"A measure of central tendency consisting of the numerical value or categorical characteristic that occurs most frequently in a sample or population" is the definition of

_______________ appraisers can appraise a 15 unit residential property without regard to value or complexity.

only Certified General

Which statement is generally true in a market with rent control?

Sale prices are subject to more rapid fluctuations than rent.

A set of numbers that has two modes is referred to as a:

bi-modal distribution

GRMs are derived by dividing the _______________ by the _______________ at the time of sale.

sale price, gross monthly unfurnished market rent

True or False: Good appraisal practice dictates brief boilerplate statements in the reconciliation section of an appraisal report.

An appraiser has developed three approaches to value in an appraisal assignment, and is now trying to determine what the final value opinion will be. Which step in the appraisal process is being undertaken here?

The process of reconciliation

occurs in several places throughout the appraisal process

An appraiser discovers that the indicated values of her comparable sales, after adjustment, have a range of over 20%. What should the appraiser do?

leave the indications as they are and explain it

A well-written reconciliation statement in an appraisal report is like an attorney's

summation to the jury

When reconciling the sales comparison approach, an appraiser should pay closer attention to

adjustments made in the upper part of the grid

Which of the stages in the life cycle of a market area does not always occur?

You calculate the following gross rent multipliers for comparable properties: 121.2, 105.3, 111.2, 150.1, 108.3, 105.3, 109.8, 108.8. What is the mode of the GRMs?

Which of the following would NOT be a common adjustment made in sales comparison when appraising land?

A deed could provide all of the following information about a property EXCEPT

"The relationship or ratio between the sale price or value of a property and its periodic gross rental income" is the definition of

gross rent multiplier

A mortgage in which a party other than the borrower assures payment in the event of default is a(n) _____________ mortgage.

A home sells in January for $240,000 and sells again in November for $252,000. When the home resold it had not been improved at all. What is the indicated adjustment for change in market conditions, per month?

Ranking analysis is a form of __________ analysis.

In what type of heating system would you find an expansion tank?

Extensive research on current construction trends and figures is conducted by

A property sold for $2,350,000. The net operating income was verified as $294,640. The capitalization rate indicated by sale is ____%.

In a market value appraisal, every comparable sale should have been sold in an _______________ transaction, with no undue _______________.

arm's length, duress

Early ductless heating systems were called

gravity systems

The 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.

A short-lived item is a building component with an ___________ life that is shorter than the ___________ life of the entire structure.

expected remaining economic, remaining economic

Curbs, gutters and grading are examples of

site improvements

Footings should be ________ as wide as the ____________.

twice, foundation wall

If an appraiser uses a cost manual to estimate cost new for a property, the result is

replacement cost

"The relationship or ratio between the sale price or value of a property and its gross annual rental income" is the definition of

gross income multiplier

Which site valuation methods should only be utilized when the subject property is income-producing by nature?

land residual and ground rent capitalization

The most commonly used method for valuing sites is the ____________ method.

sales comparison

The basic principle underlying the cost approach is the principle of ____________.

A 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?

The intended user of an appraisal is the __________ and any other user, as identified by _________.

client, name or type

A house cost $395,000 to build new. It is 5 years old and has sustained a total of 10% depreciation. It sits on a lot worth $65,000. What is its indicated value by the cost approach?

The most common brownfield contaminant is

Architectural and engineering fees are examples of _____________ costs.

"The age of property that is based on the amount of observed deterioration and obsolescence it has sustained" is the definition of ____________ age.

__________ occurs within a property; while _________occurs off the site.

Physical deterioration and functional obsolescence, external obsolescence

What is the most common type of framing currently being used in new homes?

Which would NOT be a form of concurrent ownership?

tenancy in severalty

You calculate the following gross rent multipliers for comparable properties: 121.2, 105.3, 111.2, 150.1, 108.3, 105.3, 109.8, 108.8. What is the range of the GRMs?

An 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 80%. What is the land value?

A 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 85. By the capitalized value method, how much is the depreciation attributable to the lack of air conditioning?

If a comparable property sells with atypical financing, we may have to make an adjustment for ___________.

financing terms

The identification of relevant characteristics is a judgment made by

"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 interest

USPAP says a cost approach must be developed when it is necessary for

credible results

What type of framing became popular in the 1800s with the advent of the steam-powered sawmill?

Price per room is a common unit of comparison when appraising

2-4 unit residential properties

"An amount paid for the use of land, improvements or a capital good" is the definition of

GRMs are derived by dividing the __________ by the property's ___________ at the time of sale.

sale price, gross monthly unfurnished market rent

Functional obsolescence could be caused by all of the following EXCEPT

deferred maintenance

Two squares of 180-pound roof shingles would weigh _____ pounds.

You 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?

Fannie Mae requires a single-unit residential appraisal report to include photographs of

the subject property and the comparable sales

Appraisal fees are examples of _______________ costs.

An expansion tank is part of a ___________ heating system.

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 mode of the GRMs?

There is no mode

Property that fronts on a lake is usually valued on a basis of price per

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?

Each written appraisal report must contain the date

of the report and the effective date of the appraisal

A 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?

The most common type of framing in residential construction today is

The valuation process is a systematic procedure employed to provide the answer to a(n) _______ question about the value of _________.

client's, real property

The cost approach formula states that ______________, minus depreciation, _______________, equals property value.

cost new, plus site value

"A method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, either by dividing the net income estimate by an appropriate capitalization rate or by multiplying the income estimate by an appropriate factor " is the definition of

direct capitalization

The cost estimating method most commonly used by residential appraisers is the ____________ method.

comparative-unit

A 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?

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