VALUATION AND MARKET ANALYSIS TEST
A vacant lot that measures 125 feet by 200 feet is listed at $325 per front foot. What is the listing price of the property? (Help: To solve this problem, multiply 125 feet by the cost per front foot, $325. 125 × $325 = ?)
$40,625
And completing the square footage of a single-family home, and appraiser measures the external dimensions of the gross living area, which include all of these, except
A patio
And completing the square footage of a single-family home, and appraiser measures the external dimensions of the living area, which includes all of these, except
A patio
An owner who is interested in selling his home is usually concerned about how much money he can get when it sells. A comparative market analysis may help the seller determine a realistic listing price. Which of these statements is true
A CMA contains a compilation facts about similar properties that have recently sold
A divorce attorney hires a broker to determine the value of the property the couple owns. The broker will most likely prepare a(n)
Broker's Price Opinion
The ability of a community to attract income and business is known as the communities
Economic base
Change, contribution, and substitution are some of the basic principles that affect what aspect of real estate
Value
All of these would require an appraisal, except
The seller carry loan
Defined as a loss in value from any cause, depreciation is generally divided into three categories. The loss of value due to the normal wear and tear on the property is called.
physical deterioration
The term depreciation refers to
loss of value due to any cause
From the reproduction or replacement cost of a building, the appraiser deducts depreciation, which represents
loss of value due to any reason
The principle of appraising, which states that the maximum value is achieved when the property is in harmony with its surroundings, is the principle of
conformity
A step used in the income approach to determine value is to
apply the capitalization rate.
Reconciliation is an appraisal term used to describe
the appraiser's analysis and comparison of the results of each appraisal approach.
An appraiser has been employed to estimate the market value of a parcel of vacant land. The resulting appraisal report would not include reference to.
the listed price of the parcel.
The physical characteristic of real estate, that means that every parcel of land is different is known as
uniqueness
A formal estimate of a property value market, based on establishment methods and using a licensed professional is performed by
A real estate appraiser
An appraiser conducting an appraisal on a single-family home discovers that the subject home has one more bedroom than any of the three comparable properties. The appraiser wants do use in the appraisal. To account for the extra bedroom, the appraiser will
Add the value of the bedroom to the sales price of each comparable
In the cost approach, and appraiser uses which of these
An estimate of the buildings replacement cost
Reconciliation is best described as
Analyzing the findings obtained from the three approaches to value
The term reconciliation refers to which of the following?
Analyzing the results obtained by the different approaches to value to form an opinion of value
Title XI of the financial instructions, reform, recovery, and enforcement act of 1989 regulates
Appraisers
The income approach as used by an appraiser makes use of which of these
Capitalization
A developer experience, success, and good profits in a recent real estate project. What principle of value indicates that her experience will attract others to engage in similar projects in the same area
Competition
All of these are steps in the appraisal process except
Considering the sellers estimate of the property value
In the income approach, all of these are considered when calculating net operating income, except
Debt services
Which of these is not considered by an appraiser using the income approach to value
Depreciation
A comparative market analysis, or a brokers price option would be acceptable for all of these, except
Determining conventional loan value
All of these factors would be important in comparing properties under the sales comparison approach to value except
Differences in original cost
To find the value of a property, if the net operating income and the capitalization rate are known, an appraiser using the income approach to value would
Divide the net operating income by the capitalization rate
Capitalization is a mathematical process by which annual net operating income is used to
Estimate present value
In the cost approach to value, the appraiser makes use of
Estimated replacement cost of the building
Raising mortgage rates are an example of
External obsolescence
A certified appraiser is required for which of these real estate transactions
Federally related financial transactions
A house with outmoded plumbing is suffering from
Functional obsolescence
The appraised value of a residence with four bedrooms, and one bathroom would probably be reduced because
Functional obsolescence
An appraisal asked to estimate the value of an existing strip shopping center would probably give the most weight do which approach to value
Income approach
An appraiser has been hired to value a commercial office building that is fully leased. What approach to appraisal will he use to determine his opinion of value?
Income approach
In the valuation of a large apartment complex, the most weight would be given to which approach to value
Income approach
Which appraisal method uses a rate of investment return in estimating a property's value
Income approach
A Small home, surrounded by larger, more expensive homes. The value of the smaller will most likely,
Increase because of the larger, more expensive properties
All of these terms are associated with the economic characteristics of real estate, except
License
When estimating the value of property using the cost approach, all of these are considered by an appraiser, except
Loss of value due to uncollected delinquent rent
An appraiser is assigned to appraise a house in an area with very few sales over the past year. What is the comparable properties she chooses is a Home similar to the subject property. The house recently sold as a foreclosure property. When writing . our appraisal report, what actual does appraiser take as a result of the foreclosed sale.
Make a positive adjustment to the sales price of the foreclosed home
The listing or asking price of a property in the market place is it's
Market value
Which of these would be classified as external depreciation?
Poorly maintained properties in the neighborhood
When the supply decreases, while demand rises the same time
Price tends to rise
The owners of the smaller model of homes in the neighborhood may find that the values of their homes are affected by what principle
Progression
An appraiser using the gross rent multiplier, would consider which of the following
Rental income and market price
An appraiser determines that the cost approach is the most reliable approach in determining the value of an older government building. And estimating the value, the appraiser will most likely start by determining.
Replacement cost
A state certified appraiser is conducting an appraisal of a library building, surrounded by several acres of land belonging to the property. In determining the value of the land itself, the appraiser will most likely use.
Sales comparison approach
An appraiser conducting an appraisal of a single-family residence, notes that the subject home does not have an attached garage. Three of the comparables, the appraiser chooses include attached, finished garage is. Two account for the garage that is present in each comparable, but not the subject property, the appraiser will.
Subtract the value of an attached garage from the sales price for each comparable
Rent have gone up in the area. The principal that best describes this increase is.
Supply and demand
An appraisal differs from a comparative market analysis conducted by a broker in that an appraisal is based on an analysis of properties
That have actually sold
It is necessary to calculate a dollar value for depreciation when using which of these
The cost approach to value
The market price of a parcel of real estate is
The price it sells for
An example of functional obsolescence is
a five-bedroom home with one bathroom.
The market value of a parcel of real estate is
an estimate of the most probable price it should bring
The sales comparison approach to value is most important when estimating the value of
an existing residence
A homeowner constructs, a five bedroom brick house with tennis court, and a pool in a neighborhood of modest two bedroom, and three bedroom frame houses on narrow lots. The value of the five bedroom house is most likely to be affected by the principle of.
conformity
The value of a swimming pool or other property amenities is determined by the principle of
contribution
Which approach to value would require the value of the land be calculated separately from the value of the improvements
cost approach
The purpose of an appraisal is to
estimate the value of a property
An appraiser is responsible for
estimating value
Economic, environmental, and external obsolescence refer to
factors outside of the property lines that affect the property's value.
A home with its kitchen next to the master bedroom would be considered
functionally obsolete
When appraising a commercial property, the appraiser is most concerned with
income generated by the property.
The unfinished area of a single-family home is that area
not suitable for year-round use
All of these are characteristics of value, except
obsolescence
In general, when the supply of a certain commodity increases
prices tend to drop
A homeowner constructs an eight-bedroom brick house with a tennis court, a greenhouse, and an indoor pool in a neighborhood of modest two-bedroom and three-bedroom frame houses on narrow lots. The value of this house is MOST likely to be affected by what principle?
regression
The characteristics of value include which of these
scarcity
The prices of homes currently on the market included in a comparative market analysis (CMA) assist a seller's agent in
setting a listing price with the seller in competition with similar properties currently on the market.
The income approach to value would be most important in the appraisal of
shopping center.
In MOST market areas, rents are determined by
supply and demand factors