Appraisal Mid-Term
You and your buyer client are looking over a sales comparison grid in a URAR. How would you explain to your client how the appraiser calculated the adjusted sale price of the comparables?
"Adjustments for differences in the adjustment column give the appraiser a range of values to use for the net adjustment. The appraiser adds or subtract to the sales price of the comparable to get the adjusted sale price."
A strip mall valued at $850,000 has a $67,500 annual net operating income. What is the capitalization rate for the strip mall?
7.9%
What is a section?
A one-square-mile square formed in the use of the rectangular government survey system
What is a bound?
A physical feature that defines the boundaries of the land
Which of the following is a true statement about how adjustments are made in the sales comparison approach?
Appraisers adjust upward when a comparable is missing a feature found in the subject property.
Ralph wants to be an appraiser. In order to comply with AIR, he must have all of the following qualifications except for which?
Be knowledgeable about the homes for sale in the entire state.
Why would a buyer want to know if any easements or encroachments exist on a property?
Both easements and encroachments affect the property's lot size, enjoyment, and use, which can affect a property's value.
Edgar is an appraiser who is currently reviewing the contents of the garage of a home that has been put on the market. Which of the following will he mark as a fixture in his report?
Built-in workbench
In the Site section of the Uniform Residential Appraisal Report, how is property of less than one acre noted?
By the amount of square feet
Which professional performs appraisals?
Certified appraiser
Property with ownership by more than one person is known as ______.
Co-ownership
In the sales comparison approach, which of these are selected and evaluated both quantitatively and qualitatively against the subject property?
Comparables
To make valid computations of adjustments for the market comparison approach to value, elements of comparison must be applied in a specific order. Which of these elements has the highest priority?
Condition of sale
With the cost approach to value, what is the reproduction cost?
Cost to build an exact replica of the subject, with the same materials and deficiencies
What must an appraiser provide about the data for each comparable sale so the information can be verified?
Data source
Because of the topography of Elsie's and Lawrence's respective yards, Elsie had to install her fence at the top of a hill, which is actually two feet over Lawrence's property line. What word or phrase best describes Elsie's fence?
Encroachment
When property values remain at the same level and are at their highest monetary value, the neighborhood is in what stage of the neighborhood life cycle?
Equilibrium
The state's claim to property when a property owner dies, leaving no will, heirs or creditors, is the power of ______.
Escheat
A loss in value caused by an undesirable or hazardous influence offsite is which type of depreciation?
External depreciation
If you purchase a home and have all the rights of ownership, including the right to sell and to convey the property to heirs at your death, what type of estate is this?
Fee simple
An appraiser considers several factors when selecting comparable properties as part of the sales comparison approach, including whether they are similar in location, size, and features to the subject property. Which of these factors will also be a consideration?
Financing terms
How many categories or levels are there in the appraisal track from appraisal trainee to certified property general appraiser?
Four
What types of data are always needed to complete an appraisal?
General data on the geographic and economic features and specific data on the subject site
An earthquake causes the hillside overlooking several homes to collapse. This is an example of what influencer of property values?
Geographic
Which seller motivation factor would impact pricing strategy when performing a comparative market analysis?
How soon the seller needs to sell
Carol is performing a market analysis, and is working with three comparable properties to her subject property. How does she account for differences between the subject property and comparables?
If the subject property has a valuable feature lacking in the comparable property, she adds this value to the comparable property's sales price.
Which of the following is a true statement?
If using sales older than one year, the appraiser should explain why the comparable is used.
What does the I in the acronym MARIA stand for, when determining whether an item is a fixture?
Intention in placing item on land
Which of the following is a limitation of using the sales comparison approach to valuation?
It's sometimes difficult to know if a transaction was really arm's length.
Which form of real property ownership (for owners other than married couples) means there's equal ownership shares with undivided possession rights?
Joint tenancy
A life estate can best be described as ______.
Ownership, possession, and control for someone's lifetime
Ken, Dale, and James are brothers who own more than 100 acres as tenants in common. The relationship between Ken and James disintegrated, and so James initiated a lawsuit. The end result is that the court gave each brother a designated set of acres to own. What was granted by the court?
Partition
To make valid computations of adjustments for the sales comparison approach to value, elements of comparison must be applied in a specific order. Which one of these elements listed is applied last?
Physical characteristics
For which of the following categories of adjustment are you most likely to see a dollar adjustment instead of a percentage adjustment?
Physical features
What does the lot and block system use to develop a property's legal description?
Plat reference
Which of the following is a piece of specific data an appraiser may gather?
Property lot size
Which term means "for another's life"?
Pur autre vie
The sales comparison grid on the URAR lists features that affect the market value of properties. Which of the following features is included there to describe the subject property.
Room count
Which of the approaches to value used by appraisers is most like that used by licensees when helping clients determine an appropriate list price?
Sales comparison
When recording neighborhood growth in the Neighborhood section on the Uniform Residential Appraisal Report, an appraiser will select what status if a neighborhood is fully developed?
Stable
When performing a market analysis, to what are all adjustments made?
The sales price of the comparable properties
What is the purpose behind Appraiser Independence Requirements?
To protect appraisers' ability to assess an accurate value for a property by avoiding outside pressure or influence
Darren set up a land trust so that his children could benefit from his real estate investments after he dies. He asked his financial advisor Tom to manage the trust. Darren is the ______.
Trustor
There are a lot more sellers than buyers in the current market. How will this demand influence value?
Value will be pushed downward.
What two types of data does an appraiser gather?
general and specific
Condominiums involve what type of ownership?
real property