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Terms in this set (182)
When analyzing a market for a high-value home, what is the MOST important consideration?
the number of residents in the local community
the number of potential buyers in the market place
the number of acceptable and qualified buyers in the market for this type of property
these are all equally important
the number of residents in the local community
the number of potential buyers in the market place
the number of acceptable and qualified buyers in the market for this type of property
these are all equally important
One of the problems in appraising high-value homes is:
The value of high-value homes will always be less than their cost.
Many of these homes are custom built for their current owners, and may not match the needs and desires of buyers.
There are very few sales of high-value homes in a market at any given time.
There is always a buyer's market for high-value homes
The value of high-value homes will always be less than their cost.
Many of these homes are custom built for their current owners, and may not match the needs and desires of buyers.
There are very few sales of high-value homes in a market at any given time.
There is always a buyer's market for high-value homes
There is a significant oversupply of high-value homes on the market in Community A, and demand for these homes has not increased. Which statement is FALSE?
The value of high-value homes will decline.
The value of all homes in the area will decline.
This will likely create a buyer's market for high-value homes.
None of the Above
The value of high-value homes will decline.
The value of all homes in the area will decline.
This will likely create a buyer's market for high-value homes.
None of the Above
Feasibility analysisAn investor wants to construct a four-unit apartment building. She engages an appraiser to analyze the market and tell her if the market "needs" such a building, and if the building will be worth what it costs to construct. What type of analysis is this?
fundamental analysis
feasibility analysis
scope of work analysis
credibility analysisIt is the sole responsibility of the appraiser.Which statement is TRUE regarding the scope of work decision in an appraisal assignment?
It is the sole responsibility of the appraiser.
It is the sole responsibility of the client.
It is a decision that is made jointly by the appraiser and the client.
It is the appraiser's decision; however the client can exercise veto power over itthe appraiserWho determines the appropriate level of analysis for appraisal assignment?
the client
the appraiser
the state appraisal board
the Appraisal Standards Boardmarket conditions adjustments may not be necessaryIf you are appraising in a stable market:
positive market conditions adjustments are necessary
negative market conditions adjustments are necessary
market conditions adjustments may not be necessary
the client will determine what type of market conditions adjustments to makean acceptable rate of returnWhat does a real estate investor expect in return for tying his or her money up in an investment property?
instant liquidity
to break even
an acceptable rate of return
unfavorable tax treatmentinferred analysisWhat type of analysis is developed by an appraiser using secondary data about current and past market trends?
paired sales analysis
fundamental analysis
inferred analysis
scope of work analysisFeasibility AnalysisWhat is the most common type of market study that appraisers are asked to complete?
feasibility analysis
inferred analysis
fundamental analysis
all of the aboveAn increase in the supply of housing is necessary.When analyzing a market, an appraiser notes that there is a projected increase in production by major employers, which will result in an increase in employment. Which of the following conclusions is MOST TRUE?
An increase in supply will likely precede an increase in demand.
The area is in the decline phase of the neighborhood life cycle.
The appraiser should make negative adjustments in the sales comparison approach for market conditions.
An increase in the supply of housing is necessary.29120/18200 = 1.6A community's total employment is 29,120. The number of total core industry employees is 18,200. What is the base core multiplier?
1.6
1.2
1.81
1.625An increase in demand will likely precede an increase in supply.An appraiser notes that there is a projected increase in production by major employers, which will result in a large increase in area employment. Which of the following conclusions is MOST TRUE?
An increase in demand will likely precede an increase in supply.
Lower and moderately-priced homes will increase in value; however high-value homes will not.
The appraiser should make negative adjustments in the sales comparison approach for market conditions (time).
An increase in the supply of housing will occur before an increase in demand is noted.Platform FramingMost of the framing allowed by building codes is of the western framing technique. This type of framing is used to construct one story at a time and is commonly called __________ framingFunctional ObsolescenceIf the air conditioning had been installed as part of the original construction, there would be no functional obsolescence at the present time. The cost to install the air conditioning at the time of construction would have been $4,000. The cost to install the air conditioning now is $7,000. By subtracting the cost to install the air conditioning at the time of construction ($4,000) from the cost to install the air conditioning now and eliminate the functional obsolescence ($7,000), a dollar figure is derived for the functional obsolescence of $3,000.
$7,000 cost to install air conditioning now
-$4,000 less: cost to install at time of construction
$3,000 dollar amount of functional obsolescence
If the property's value will increase by more than the $7,000 because of the installation of the air conditioning, then the functional obsolescence is said to be curable.
If the property value would only increase $5,000 because of the installation of the air conditioning, then the functional obsolescence would be labeled as incurable. The owner may still want to install the air conditioning but the full cost of installation will not be returned in the form of increased value as determined by the market place.Effective AgeExample to Supporting Effective Age of the Subject property
Use several comparable sales from the same neighborhood. Assumptions are that all sales and the subject property have had similar upkeep, with no major upgrading, remodeling, rehabilitation, or additions.
Sale Price of the Comparable Sale: $100,000.
Less: Land Value: $ 20,000.
Present Value of the Improvements: $ 80,000.
Cost New of the Improvements: $130,000.
(No land value included here)
Less: Present Value of the Improvements: $80,000.
Total accrued Depreciation of Improvements: $50,000.
Total Depreciation of Improvements / Divided by Cost New of Improvements:
$50,000 / $130,000 = .3846
This is the total percentage of loss from cost new: .3846 or 38.5%
Assume that the comparable sale is 24 years old. That means it has depreciated 38.5% over 24 years - or an average of 1.6% per year (.385 / 24 = 0.016).
Let's further assume that two other comparable sales indicate average annual depreciation rates of 1.4% and 1.5%.
If we reconcile the three indications to be 1.5% depreciation a year; then we can use that to estimate the Effective Age of the subject property.
The subject property is 26 years old. 26 X 01.5 = .39 or 39% depreciated.
If the subject has a Total Economic Life of 70 years, then its Effective Age could be calculated as 70 X .39 = 27.3; rounded to 27 years.Total Economic LifeExample to Support Total Economic Life of the Subject Property
As with effective age, use several comparable sales from the same neighborhood.
Sale Price of the Comparable
Less: Land Value
Equals: Contributing Value of the Improvement
Gross Living Area of the Comparable is multiplied by the appropriate cost per square foot for the type of construction to obtain:
Replacement Cost New of the Improvement.
Replacement Cost New minus the Contributing Value of the Improvement
Equals: Total Accrued Depreciation from Cost New.
Total Accrued Depreciation divided by the Replacement Cost New equals:
Percent (%) of total Accrued Depreciation.
Percent of Total Accrued Depreciation (%) divided by the Chronological Age of the Comparable Sale equals:
Rate of Depreciation per year.
1.0 (this is 100 percent depreciation) divided by the Rate of Depreciation per year equals:
Total Economic Life70Generally, a heating system should be able to maintain an interior temperature of ______ degrees Fahrenheit.
55
98.6
90
70Effective AgeThe age of a structure based on the condition and utility of the structure in relation to the marketplace is its:
actual age
functional age
economic age
effective ageall of theseWhich of these would generally be considered examples of functional obsolescence?
four bedroom home with only one bathroom
older, outdated lighting and plumbing fixtures
walk-through (captive) bedrooms
all of theseincurableA property suffers from functional obsolescence because it has outdated single-pane windows. Installation of new multipane windows would cost $24,000 and would increase the value of the property by $20,000. This functional obsolescence is:
curable
incurable
it cannot be determined from the information
provided"p-traps"What is typically used to prevent back flow of sewer gasses into homes?
pressure reduction valves
reduction in the size of the water line
gas-fired burners
"p-traps"total economic lifeThe length of time a given structure will contribute value to the property is its:
actual life
total economic life
total physical life
effective agecomposite sidingDue to its durability, what type of siding is being used instead of vinyl siding on many new homes?
aluminum siding
wood lap siding
asbestos siding
composite sidingthey will have steeper roof pitchesAn appraiser moves his business from Arizona to Minnesota. What characteristic will she undoubtedly notice regarding the homes in Minnesota?
they will not have double-glazed windows
they will have steeper roof pitches
they will have thicker exterior walls
they will have thicker interior wallsHow many buyers can afford to purchase this property in this location?What would be an appraiser's concern in analyzing the market for a high-value residential property?
How far away am I going to have to go in order to find comparable sales?
How many buyers can afford to purchase this property in this location?
Why did the owner build a home of this type in this location?
How long is this analysis going to take?150-200If a home has central air conditioning, what would be the minimum electrical amperage an appraiser would expect to see in the home?
100
150-200
60
400A and V onlyWhat zones are designated as Special Flood Hazard Areas (SFHAs)?
A and B only
A and C only
A and V only
A, B, C, and V52220 / 37300 = 1.4
1.4 * 10 = 14
=4A community's total employment is 52,220. The number of total core industry employees is 37,300. For every 10 jobs added in the core industry, how many additional jobs will be generated in the community?
seven
two
four
threethe number of acceptable and qualified buyers in the market for this type of propertyWhen analyzing a market for a high-value home, what is the MOST important consideration?Even though it is the only home for sale, if it does not meet utility requirements of buyers, it has a lower value.A custom-built high-quality home is currently listed for sale, and is the only high-value home on the market in its area. The current owner/builder was a single man who disliked his family; consequently he built a one-bedroom home to discourage any of his grown children from moving back in with him. Which statement is true?How many buyers can afford to purchase this property in this location?What would be an appraiser's concern in analyzing the market for a high-value residential property?The market may be subdivided more than once in order to arrive at an appropriate segmentationWhich statement is TRUE regarding market identification?The value of all homes in the area will decline.There is a significant oversupply of high-value homes on the market in Community A, and demand for these homes has not increased. Which statement is FALSE?list-to-sale ratios
absorption rates
expiration ratiosIn analyzing the segmented market area, an appraiser might utilize:subdividing the larger market into a workable study areaMarket identification involves:defining the market segmentWhat is the first step in the market analysis process?the appraiser onlyWho is responsible for making an appropriate scope of work decision in an appraisal assignment?an acceptable rate of returnWhat does a real estate investor expect in return for tying his or her money up in an investment property?communiciation with the clientWhat helps an appraiser determine the appropriate level of analysis to employ in an appraisal assignment?feasibility analysisAn investor wants to construct a four-unit apartment building. She engages an appraiser to analyze the market and tell her if the market "needs" such a building, and if the building will be worth what it costs to construct. What type of analysis is this?inferred analysisWhat type of analysis is developed by an appraiser using secondary data about current and past market trends?market conditions adjustments may not be necessaryIf you are appraising in a stable market:fundamental analysisWhat type of analysis consists of primary economic research by an analyst?It is the sole responsibility of the appraiser.Which statement is TRUE regarding the scope of work decision in an appraisal assignment?visual inspection of the subject propertyIn most appraisal situations, what is the appraiser's best source for data about the subject property's physical characteristics?feasibility analysisWhat is the most common type of market study that appraisers are asked to complete?1.4A community's total employment is 52,220. The number of total core industry employees is 37,300. What is the base core multiplier?4
52220/57300 = 1.4
For every 10 new core employees hired, four additional jobs will be generated throughout the community as a spin-off from those core business or industry employees.A community's total employment is 52,220. The number of total core industry employees is 37,300. For every 10 jobs added in the core industry, how many additional jobs will be generated in the community?29,120 / 18,200 = 1.6. 450 x 0.6 = 270A community's total employment is 29,120. The number of total core industry employees is 18,200. If the core industry adds 450 more jobs, how many additional jobs will be generated in the community?whether a proposed project is feasible for the market place at this timeWhen a client asks for a feasibility analysis, what do they want to know?effective ageThe age of a structure based on the condition and utility of the structure in relation to the marketplace is itsexteriorThe ANSI standard for measuring residential square footage in homes is based on _________ measurements, for detached dwellings.150-200If a home has central air conditioning, what would be the minimum electrical amperage an appraiser would expect to see in the home?assume the home was inspected at the time it was builtWhat is an appraiser's responsibility in determining whether the home's footings are at least one foot below the frost line?CurableA property suffers from functional obsolescence because it has four bedrooms and only one bathroom. Installation of a second bathroom would cost $10,000 and would increase the value of the property by $12,000. This functional obsolescence is:1,220 square feet
This is a single story home, so there is no second floor from which we would subtract the 370 foot foyer. We would subtract the 8' x 10' storage inaccessible storage area, so 1,300 less 80 equals 1220 square feet.An appraiser's exterior measurement of a single story residential property indicates a GLA of 1,300 square feet. An interior inspection reveals an entry foyer of 370 square feet and an eight foot by ten foot unfinished storage area not accessible from the interior of the house. The GLA of the home is:A and V onlyWhat zones are designated as Special Flood Hazard Areas (SFHAs)?78Generally, an air conditioning system should be able to maintain an interior temperature of ______ degrees Fahrenheit.FEMAWhat entity produces flood hazard maps and assigns flood area designations?Composite sidingDue to its durability, what type of siding is being used instead of vinyl siding on many new homes?MHWhat type of new home is MOST likely to have a pier and beam foundation?they will have steeper roof pitchesAn appraiser moves his business from Arizona to Minnesota. What characteristic will she undoubtedly notice regarding the homes in Minnesota?70Generally, a heating system should be able to maintain an interior temperature of ______ degrees Fahrenheit.be subtracted from the square footage totalsWhen there is an open two-story foyer area, the ANSI standard for measuring residential square footage requires that this open second floor area:"p-traps"What is typically used to prevent back flow of sewer gasses into homestotal economic lifeThe length of time a given structure will contribute value to the property is its:270A community's total employment is 29,120. The number of total core industry employees is 18,200. If the core industry adds 450 more jobs, how many additional jobs will be generated in the community?western framingAnother term for platform framing is:No, but it still may be necessary for credible assignment resultsIs an opinion of highest and best use required in an appraisal that is NOT based on market value?
Yes, it is required in all appraisals
No, but it still may be necessary for credible assignment results
No, it is never required in non-market value appraisal assignmentsits highest and best useThe market value of the land is always determined based on:
its current use
its highest and best use
the sales comparison approach
a current datean opinionAn appraiser's highest and best use conclusion is always:
a fact
an opinion
an assumption
an educated guessthe property will be valued at its highest and best useAll appraisal assignments that require a market value opinion imply that:
the USPAP definitions of market value and highest and best use will be used
the appraiser has inspected the interior of the property improvements
the property will be valued at its highest and best use
there is only one definition of market valueIf the current improvements clearly do not represent the highest and best use of the site as an improved site, the appraiser should stop and not complete the appraisal report.All of these statements concerning Fannie Mae's position on highest and best use is true, except for
If the use of comparable sales demonstrates that the improvements are reasonably typical and compatible with market demand for the neighborhood, and the present improvements contribute to the value of the subject property so that its value is greater than the estimated vacant site value, the appraiser should consider the existing use as reasonable and report it as the highest and best use.
If the current improvements clearly do not represent the highest and best use of the site as an improved site, the appraiser should stop and not complete the appraisal report.
Fannie Mae will only purchase or securitize a mortgage that represents the highest and best use of the site as improved.
The appraiser's highest and best use analysis of the subject property should consider the property as it is improved.financially feasible
"Financial Feasibility - as Vacant": Considerations to be made in "physically possible" would include the availability of public utilities to the site. Other considerations would include the soil type and bearing capacity, and whether the property is situated in a flood-prone area. When considering financial feasibility, the first analysis is the inferred analysis of the relationship between the supply and the demand for a site's particular highest and best use. Is there a need or demand for this use of the land? How many other similarly used land areas are there in the market area? Can the market support another land use of this type?Which highest and best use criterion would require an appraiser to consider the need for the land use, or how many similarly-used land areas are in the market area?
physically possible
legally permissible
financially feasible
maximally possibledemolition costIf the improvements have a negative value, an appraiser must consider __________ in the feasibility analysis.
published cost manuals
demolition cost
loss of income
reproduction costlegally permissibleWhich highest and best use criterion would require an appraiser to consider private deed restrictions?
physically possible
legally permissible
financially feasible
maximally productiveit is not financially feasibleAn appraiser is analyzing a parcel of vacant land, on a back road in a rural area. The owner tells the appraiser he plans to build a fast-food restaurant on the land. There is no zoning, and no other significant land use restrictions. The appraiser determines the highest and best use is NOT to build a fast food restaurant. What is the most likely reason for this conclusion?
it is not physically possible
it is not legally permissible
it is not financially feasible
none of the abovemaximally productiveWhen testing for highest and best use, which criterion (or test) is applied last?
physically possible
legally permissible
financially feasible
maximally productivephysically possibleWhich highest and best use criterion would require an appraiser to consider the availability of public utilities to a site?
physically possible
legally permissible
financially feasible
maximally productivephysically possibleWhich highest and best use criterion would require an appraiser to consider what improvements would fit on the site?
physically possible
legally permissible
financially feasible
maximally productivelegally permissible and physically possibleWhen testing for highest and best use, which two criteria (or tests) are applied first?
physically possible and financially feasible
legally permissible and physically possible
legally permissible and financially feasible
financially feasible and maximally productiveExcess Land__________ Land can be defined as:
-land area that is larger than what is typical for the market area;
-capable of a separate or alternative use;
-larger than what is required for the subject's highest and best use;
-accessible; and
-capable of being sold for a separate use.Surplus Land__________ Land is land that:
-may not be large enough to satisfy zoning requirements if viewed as a stand alone site;
-may not have adequate access;
-cannot be separated and used effectively;
-and is not capable of a separate use.excess landLand that is larger than typical for the area, larger than what is required for the subject's use, and is capable of being sold for a separate use is:
excess land
surplus land
non-conforming land
interim landan investorWho would be the most likely purchaser for a multi-use property?
a speculator who converts the property to a single use
a residential owner-occupant
an investor
any of theseconvert the residence into officesA duplex is located in a commercially-zoned area. Residential sale prices in the area range from $75-85 per square foot. The residence could be converted to professional offices at a cost of $15 per square foot. Office space in this area is selling at $110-120 per square foot. What is the highest and best use of this property?
raze the duplex and build a new office
continue use as a single-family home
convert the residence into offices
whatever the owner says it isSingle-family use is an interim use.A single-family home is situated on a commercially-zoned lot. It would not be financially feasible to convert the home to commercial use, because there is not enough demand for commercial properties at this time. However, demand is expected to increase as the community grows. Which statement is TRUE regarding this situation?
The home should be razed.
The highest and best use of the property is mixed residential and commercial use.
Single-family use is an interim use.
Commercial use is the highest and best use.under-improvementA residential dwelling which is a legal nonconforming use in a commercial area would be considered:
under-improvement
over-improvement
illegal use
mixed useLegally nonconforming use"A use that is lawfully established and maintained, but no longer conforms to the use regulations of the zone in which it is located" is the definition of what term?
Highest and best use
Interim use
Illegal use
Legally nonconforming useCommercial useA single-family home is situated on a commercially-zoned lot. It would not be financially feasible to convert the home to commercial use, because there is not enough demand for commercial properties at this time. Demand for industrial property is very strong; however, a zoning change is unlikely. Demand for commercial properties is expected to increase as the community grows. What is the ultimate highest and best use for this property?
Industrial use
Commercial use
Recreational use
Not enough information has been providedsurplus landLand that is larger than typical for the area, but cannot be separated and used effectively and is not capable of a separate use, is:
excess land
surplus land
non-conforming land
interim landIf the current improvements clearly do not represent the highest and best use of the site as an improved site, the appraiser should stop and not complete the appraisal report.All of these statements concerning Fannie Mae's position on highest and best use is true, except for
Fannie Mae will only purchase or securitize a mortgage that represents the highest and best use of the site as improved.
If the current improvements clearly do not represent the highest and best use of the site as an improved site, the appraiser should stop and not complete the appraisal report.
The appraiser's highest and best use analysis of the subject property should consider the property as it is improved.
If the use of comparable sales demonstrates that the improvements are reasonably typical and compatible with market demand for the neighborhood, and the present improvements contribute to the value of the subject property so that its value is greater than the estimated vacant site value, the appraiser should consider the existing use as reasonable and report it as the highest and best use.single-family homesiteA vacant site is zoned for use as a single-family homesite, and it is unlikely to be changed. As a single-family homesite, the site is worth $75,000. As a commercial site, it would be worth $150,000. What is the highest and best use of this property?
commercial use
single-family homesite
neither of theseHow are existing improvements valued in a market value appraisal assignment?based on their contributory value to the landThe market value of the land is always determined based on:its highest and best useIs an opinion of highest and best use required in an appraisal that is NOT based on market value?No, but it still may be necessary for credible assignment resultsWhat is the reasonably probable and legal use of a property that is physically possible, appropriately supported, financially feasible, and results in the highest value?highest and best useIt is a requirement to develop an opinion of the highest and best use of a property:in market value appraisal assignmentsAll appraisal assignments that require a market value opinion imply that:the property will be valued at its highest and best useThe two types of highest and best use analysis are:as vacant and as improvedIt is a requirement to develop an opinion of the highest and best use of a property:in market value appraisal assignmentsThe use that produces the optimum value for the property is its:highest and best useAn appraiser's highest and best use conclusion is always:an opinionA vacant site is zoned for use as a single-family homesite, and it is unlikely to be changed. As a single-family homesite, the site is worth $75,000. As a commercial site, it would be worth $150,000. What is the highest and best use of this property?single-family homesiteWhich highest and best use criterion would require an appraiser to consider private deed restrictions?legally permissibleAn appraiser is analyzing a parcel of vacant land, on a back road in a rural area. The owner tells the appraiser he plans to build a fast-food restaurant on the land. There is no zoning, and no other significant land use restrictions. The appraiser determines the highest and best use is NOT to build a fast food restaurant. What is the most likely reason for this conclusion?it is not financially feasibleWhich highest and best use criterion would require an appraiser to consider the availability of public utilities to a site?physically possibleOnly those uses which produce a positive return are considered ____financially feasibleIf the improvements have a negative value, an appraiser must consider __________ in the feasibility analysis.demolition costWhen testing for highest and best use, which criterion (or test) is applied last?maximally productiveWhich highest and best use criterion would require an appraiser to consider minimum lot sizes and height restrictions imposed by a local municipality?legally permissibleWhich highest and best use criterion would require an appraiser to consider the need for the land use, or how many similarly-used land areas are in the market area?financially feasibleWhich highest and best use criterion would require an appraiser to consider the shape of the site?physically possibleWhich highest and best use criterion would require an appraiser to consider excavation or filling that may be required in order for a site to accommodate an improvement?physically possibleWhen testing for highest and best use, which two criteria (or tests) are applied first?legally permissible and physically possibleWhich highest and best use criterion would require an appraiser to consider what improvements would fit on the site?physically possibleA single-family homesite is worth $40,000. The owner plans to build a 4,000 square foot home on it, at a cost of $600,000. When it is completed, the property will be worth $620,000. Which statement is TRUE regarding the proposed 4,000 square foot home?not financially feasableLand that is larger than typical for the area, larger than what is required for the subject's use, and is capable of being sold for a separate use is:Excess landWhat often happens when a special purpose property, like a school, is abandoned?it will be put to an alternative useA single-family residence is located in a commercially-zoned area. Residential sale prices in the area range from $80-90 per square foot. The residence could be converted to offices at a cost of $25 per square foot. Office space in this area is selling at $90-100 per square foot. What is the highest and best use of this property?continue use as a single-family homeA property is currently zoned for agricultural use, but its highest and best use is expected to change to commercial use within the next 3-5 years. The subject property's current use is considered:interim useA single-family home is situated on a commercially-zoned lot. It would not be financially feasible to convert the home to commercial use, because there is not enough demand for commercial properties at this time. Demand for industrial property is very strong; however, a zoning change is unlikely. Demand for commercial properties is expected to increase as the community grows. What is the ultimate highest and best use for this propertyCommercial useA single-family home is situated on a commercially-zoned lot. It would not be financially feasible to convert the home to commercial use, because there is not enough demand for commercial properties at this time. However, demand is expected to increase as the community grows. Which statement is TRUE regarding this situation?Single-family use is an interim use.A property has two acres, in an area where one-acre lots are common. There is a home built on the property at one corner. The property is situated in such a way that one acre could be sold off and developed without affecting the existing homesite. This would be considered ___________ situation.an excess landA home is situated on a two-acre site, in an area where one-acre sites are common. The home is directly in the center of the property, and it is not possible to subdivide off and develop a one-acre site from the subject site. This situation is best described as _______ situationa surplus landA single-family residence is located in a commercially-zoned area. Residential sale prices in the area range from $100-110 per square foot. The residence could be converted to offices at a cost of $20 per square foot. Office space in this area is selling at $135-150 per square foot. What is the highest and best use of this property?convert the residence into officesA commercial use was established in 1975. The local municipality rezoned the property in 1990 to permit only residential uses. The commercial use is permitted to continue its operations. What is this?Legally nonconforming useA use that is lawfully established and maintained, but no longer conforms to the use regulations of the zone in which it is located" is the definition of what term?Legally nonconforming useA sports arena with restaurants and retail shops on the lower level would best be described as what type of property?multiple use propertyA residential dwelling which is a legal nonconforming use in a commercial area would be considered:under-improvementA property has one acre, in an area where half-acre lots are common. There is a single-family home located at one end of the property, and is situated in such a way that a half-acre site could be sold off and developed without affecting the existing homesite. Which statement best describes this situation?This is an excess land situation.the number of acceptable and qualified buyers in the market for this type of propertyWhen analyzing a market for a high-value home, what is the MOST important consideration?Even though it is the only home for sale, if it does not meet utility requirements of buyers, it has a lower value.A custom-built high-quality home is currently listed for sale, and is the only high-value home on the market in its area. The current owner/builder was a single man who disliked his family; consequently he built a one-bedroom home to discourage any of his grown children from moving back in with him. Which statement is true?How many buyers can afford to purchase this property in this location?What would be an appraiser's concern in analyzing the market for a high-value residential property?The market may be subdivided more than once in order to arrive at an appropriate segmentationWhich statement is TRUE regarding market identification?The value of all homes in the area will decline.There is a significant oversupply of high-value homes on the market in Community A, and demand for these homes has not increased. Which statement is FALSE?list-to-sale ratios
absorption rates
expiration ratiosIn analyzing the segmented market area, an appraiser might utilize:subdividing the larger market into a workable study areaMarket identification involves:defining the market segmentWhat is the first step in the market analysis process?the appraiser onlyWho is responsible for making an appropriate scope of work decision in an appraisal assignment?an acceptable rate of returnWhat does a real estate investor expect in return for tying his or her money up in an investment property?communiciation with the clientWhat helps an appraiser determine the appropriate level of analysis to employ in an appraisal assignment?feasibility analysisAn investor wants to construct a four-unit apartment building. She engages an appraiser to analyze the market and tell her if the market "needs" such a building, and if the building will be worth what it costs to construct. What type of analysis is this?inferred analysisWhat type of analysis is developed by an appraiser using secondary data about current and past market trends?market conditions adjustments may not be necessaryIf you are appraising in a stable market:fundamental analysisWhat type of analysis consists of primary economic research by an analyst?It is the sole responsibility of the appraiser.Which statement is TRUE regarding the scope of work decision in an appraisal assignment?visual inspection of the subject propertyIn most appraisal situations, what is the appraiser's best source for data about the subject property's physical characteristics?feasibility analysisWhat is the most common type of market study that appraisers are asked to complete?1.4A community's total employment is 52,220. The number of total core industry employees is 37,300. What is the base core multiplier?4
52220/57300 = 1.4
For every 10 new core employees hired, four additional jobs will be generated throughout the community as a spin-off from those core business or industry employees.A community's total employment is 52,220. The number of total core industry employees is 37,300. For every 10 jobs added in the core industry, how many additional jobs will be generated in the community?29,120 / 18,200 = 1.6. 450 x 0.6 = 270A community's total employment is 29,120. The number of total core industry employees is 18,200. If the core industry adds 450 more jobs, how many additional jobs will be generated in the community?whether a proposed project is feasible for the market place at this timeWhen a client asks for a feasibility analysis, what do they want to know?effective ageThe age of a structure based on the condition and utility of the structure in relation to the marketplace is itsexteriorThe ANSI standard for measuring residential square footage in homes is based on _________ measurements, for detached dwellings.150-200If a home has central air conditioning, what would be the minimum electrical amperage an appraiser would expect to see in the home?assume the home was inspected at the time it was builtWhat is an appraiser's responsibility in determining whether the home's footings are at least one foot below the frost line?CurableA property suffers from functional obsolescence because it has four bedrooms and only one bathroom. Installation of a second bathroom would cost $10,000 and would increase the value of the property by $12,000. This functional obsolescence is:1,220 square feet
This is a single story home, so there is no second floor from which we would subtract the 370 foot foyer. We would subtract the 8' x 10' storage inaccessible storage area, so 1,300 less 80 equals 1220 square feet.An appraiser's exterior measurement of a single story residential property indicates a GLA of 1,300 square feet. An interior inspection reveals an entry foyer of 370 square feet and an eight foot by ten foot unfinished storage area not accessible from the interior of the house. The GLA of the home is:A and V onlyWhat zones are designated as Special Flood Hazard Areas (SFHAs)?78Generally, an air conditioning system should be able to maintain an interior temperature of ______ degrees Fahrenheit.FEMAWhat entity produces flood hazard maps and assigns flood area designations?Composite sidingDue to its durability, what type of siding is being used instead of vinyl siding on many new homes?MHWhat type of new home is MOST likely to have a pier and beam foundation?they will have steeper roof pitchesAn appraiser moves his business from Arizona to Minnesota. What characteristic will she undoubtedly notice regarding the homes in Minnesota?70Generally, a heating system should be able to maintain an interior temperature of ______ degrees Fahrenheit.be subtracted from the square footage totalsWhen there is an open two-story foyer area, the ANSI standard for measuring residential square footage requires that this open second floor area:"p-traps"What is typically used to prevent back flow of sewer gasses into homestotal economic lifeThe length of time a given structure will contribute value to the property is its:270A community's total employment is 29,120. The number of total core industry employees is 18,200. If the core industry adds 450 more jobs, how many additional jobs will be generated in the community?western framingAnother term for platform framing is:
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