Basic Appraisal Procedures 30 Hours

A property sold for $74,000 and it was rented for $675 at the time of sale. What is the indicated GRM?

109.6

Here are three comparable sales. Sale 1 with a sale price of $127,000 and a monthly rent of $950. Sale 2 with a sale price of $132,000 and a monthly rent of $1025. Sale 3 with a sale price of $122,700 and a monthly rent of $1,000. What is the range of the GRMs? 17 14.4 9.4 11

11

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 square foot?

11.06

"The relationship between a single year's net operating income expectancy and the total property price or value" is the definition of a(an) ______________ rate. mortgage overall capitalization yield acceptable

Overall Capitalization

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

Specific

An expense ratio is the ratio of expenses to cost expenses to income rent to expenses expenses to utilities

expenses to income

The HUD label on a manufactured home is not found in today's new manufactured homes is optional and not important is a metal tag on the outside of the home is a sticker found inside the home

is a metal tag on the outside of the home

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? 96.3 99.9 95.6 there is no mode

no mode

Which can be affected by extremes at either end of the distribution? mean median mode maximum

mean

In the sales comparison method, quantitative adjustments are based on dollars, while qualitative adjustments are based on percentages. True False

False

True or False: A postal mailing address is equivalent to a legal description. True False

False

True or False: Effective age is the same as chronological age. True False

False

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

False

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

False

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

False

Note: One of the prime sources of specific data about a property is the deed. The deed will provide you with: The legal description of the property The owners of record Easements of record Deed restrictions Chain of title (when the property was purchased and from whom)

Note: One of the prime sources of specific data about a property is the deed. The deed will provide you with: The legal description of the property The owners of record Easements of record Deed restrictions Chain of title (when the property was purchased and from whom)

Note: Some common sources of specific data include: Deeds Location maps Tax maps Flood maps Assessor's records Title companies Zoning ordinances Multiple listing services

Note: Some common sources of specific data include: Deeds Location maps Tax maps Flood maps Assessor's records Title companies Zoning ordinances Multiple listing services

Of the three general types of depreciation, which type occurs off the site? curable short-lived physical external

Of the three general types of depreciation, which type occurs off the site? external

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

True

True or False: Condemnation appraisals often require an appraiser to develop a separate opinion of site value. True False

True

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

True

True or False: GRM analysis should not be used in areas with rent controls. True False

True

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

True

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

True

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

True

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

True

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

True or False: Balloon framing has replaced platform framing as a modern building technique. False Due to fire hazard and code compliance issues (not to mention the difficulty of getting good lumber 20 feet long), balloon framing is rarely used today. It has been replaced by platform framing.

True or False: External obsolescence can be shared between building and land. True False

True or False: External obsolescence can be shared between building and land. True

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

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

True or False: Qualitative analysis uses percentages adjustments, while quantitative analysis uses specific dollar adjustments. True False

True or False: Qualitative analysis uses percentages adjustments, while quantitative analysis uses specific dollar adjustments. False

"The total income attributable to real property at full occupancy before vacancy and operating expenses are deducted" is the definition of effective gross income net operating income potential gross income operating income

potential gross income

With yield capitalization, the overall value is estimated by adding together the _______________ and the _______________of the reversion of capital. future worth of the income, present worth future worth of the income, future worth present worth of the income, present worth present worth of the gross income, future worth

present worth of the income, present worth

"A loss in value from any cause" is the definition of what appraisal term? Decline Depreciation Decreasing returns Opportunity cost

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

"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 market data specialized data generalized data general data

"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 general data

"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 condominium joint tenancy easement partial interest

"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

"Documentation necessary to support an appraiser's analyses, opinions, and conclusions" is the appraiser's workfile scope of work assignment conditions extraordinary assumption

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

"Documentation necessary to support an appraiser's analyses, opinions, and conclusions" is the definition of workfile scope of work addenda valuation process

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

"The ability of a property or building to be useful and perform the function for which it was intended according to current market tastes and standards" is the definition of __________________. functional obsolescence functional utility functional inutility useful life

"The ability of a property or building to be useful and perform the function for which it was intended according to current market tastes and standards" is the definition of __________________. functional utility Functional Obsolescence. that correctly defines functional utility.

"The amount an entrepreneur expects to receive for his or her contribution to a project or risk..." is the definition of risk rate incentive entrepreneurial incentive entrepreneurial risk

"The amount an entrepreneur expects to receive for his or her contribution to a project or risk..." is the definition of entrepreneurial incentive

"The estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvements, using modern materials and current standards, design, and layout" is the definition of reproduction cost replacement cost depreciated cost replica cost

"The estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvements, using modern materials and current standards, design, and layout" is the definition of replacement cost

"The geographic region from which a majority of demand comes and in which the majority of competition is located" is the definition of neighborhood market area district municipality

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

"The order in which quantitative adjustments are applied to the sale prices of comparable properties" is the definition of reconciliation conditions of sale property rights conveyed sequence of adjustments

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

"The period of time over which a structure or a component of a property may reasonably be expected to perform the function for which it was designed" is the definition of __________ life. incurable physical useful actual

"The period of time over which a structure or a component of a property may reasonably be expected to perform the function for which it was designed" is the definition of __________ life. useful

"The period over which improvements to real estate contribute to real property value" is the definition of effective age economic life useful life physical life

"The period over which improvements to real estate contribute to real property value" is the definition of economic life

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

+5500

An inch of wood has an R factor of about __. 1 2 4 10

1

When describing roofing shingles, a "square" contains __________ square feet. 1 10 50 100

100

The Fannie Mae Single Family Comparable Rent Schedule is also known as Form 1004 1007 1020 1025

1007

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

11%

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

20500

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?

2456

Traditionally, appraisers have used a minimum of _____ comparable sales in the sales comparison approach. 2 3 5 6

3

A 32 unit apartment building has 12 units rented at $900 per month, 12 units rented at $1,100, and 8 units rented at $1,300 per month. What is its gross income?

412800

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? 95.6 96.3 99.9 94.3

95.6

A 10-year-old house will always have physical deterioration functional obsolescence external obsolescence all of these

A 10-year-old house will always have physical deterioration

A 12 year old roof with an expected life of 20 years would have experienced depreciation of $______ if the cost new of the roof is $8,000. $3,200 $4,200 $4,800 $6,000

A 12 year old roof with an expected life of 20 years would have experienced depreciation of $______ if the cost new of the roof is $8,000. $4,800

A 2,800 square foot new home recently sold for $660,000. The site value was $180,000. The subject home has 2,945 square feet. What was the indicated cost of the subject home? $504,861 $515,324 $523,887 $531,400

A 2,800 square foot new home recently sold for $660,000. The site value was $180,000. The subject home has 2,945 square feet. What was the indicated cost of the subject home? $504,861

A 6 year old water heater with an expected life of 15 years will have experienced depreciation of ____%. 20 25 30 40

A 6 year old water heater with an expected life of 15 years will have experienced depreciation of ____%. 40

A parcel of raw land has been improved so that it is ready to be used for a specific purpose. The land has now become an interim use a site land residual under-improved

A Site

A __________ home has a permanent steel chassis, wheels and axles. manufactured modular pre-cut panelized

A __________ home has a permanent steel chassis, wheels and axles. manufactured

12 of 12Gross living area should NOT include: A second floor laundry room A basement family room A first floor half-bath A foyer closet

A basement family room.

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? $79,200 $98,468 $114,665 $138,400

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? $138,400

A building was constructed in September 2008 for $872,500. The cost index at that time was 174.6. The current cost index is 222.9. What is the indicated cost new of the building today? (Round the index to 2 decimal places) $1,116,800 $1,198.253 $1,235,835 $1,345,742

A building was constructed in September 2008 for $872,500. The cost index at that time was 174.6. The current cost index is 222.9. What is the indicated cost new of the building today? (Round the index to 2 decimal places) $1,116,800 Round to 1.28

A built-in dishwasher and stove have replacement costs of $350 and $500, respectively. They are both 6 years old and have a remaining life of 9 years. What is the total of short-lived physical depreciation attributable to these appliances? $282 $340 $399 $406

A built-in dishwasher and stove have replacement costs of $350 and $500, respectively. They are both 6 years old and have a remaining life of 9 years. What is the total of short-lived physical depreciation attributable to these appliances? $340

A market area boundary might be indicated by a change in all of the following EXCEPT age of structures type of use; single family, commercial, etc. topography income levels

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

A method of valuing property by discounting the anticipated income stream at an appropriate rate, plus discounting the value of the reversion is gross rent multiplier direct capitalization yield capitalization the cost approach

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

A rectangular-shaped two-story home measures 28 feet by 40 feet. How many lineal feet are there in the foundation? 68 136 148 272

A rectangular-shaped two-story home measures 28 feet by 40 feet. How many lineal feet are there in the foundation? 136

A roof has a pitch of 4 to 12. For every three feet the roof goes sideways, it goes up ________. One foot Two feet Four feet 12 feet

A roof has a pitch of 4 to 12. For every three feet the roof goes sideways, it goes up ________. One foot

An appraisal of which of these types of properties would NOT be reported using the Fannie Mae URAR form? a unit in a shopping mall a unit in a planned unit development a one-unit property with an accessory unit a one-unit property

An appraisal of which of these types of properties would NOT be reported using the Fannie Mae URAR form? a unit in a shopping mall

Appraisal, accounting and legal fees are examples of ____________ costs. direct indirect entrepreneurial capital

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

According to Fannie Mae, all of the following are unacceptable appraisal practices EXCEPT -not supporting adjustments in the sales comparison approach -selection and use of inappropriate comparable sales -use of comparables that are over six months old -failure to make adjustments when they are clearly indicated

According to Fannie Mae, all of the following are unacceptable appraisal practices EXCEPT use of comparables that are over six months old

Adjustments should be made for __________ differences between the subject property and a comparable property. all at least three significant no more than three

Adjustments should be made for __________ differences between the subject property and a comparable property. significant

Adjustments should be made when there are ____________ differences between the subject property and a comparable sale. any at least 2 significant and measurable obvious

Adjustments should be made when there are ____________ differences between the subject property and a comparable sale. significant and measurable

An appraiser encounters a small crack in a foundation slab on a house he is appraising. He discloses the crack in the appraisal report and states that he is not a structural engineer and assumes the crack is not structural in nature and does not require a repair. This is an example of the use of a(n) ______________. Hypothetical condition Extraordinary assumption Unethical contingency Jurisdictional exception

An appraiser encounters a small crack in a foundation slab on a house he is appraising. He discloses the crack in the appraisal report and states that he is not a structural engineer and assumes the crack is not structural in nature and does not require a repair. This is an example of the use of a(n) ______________. Extraordinary assumption

An appraiser encounters an underground storage tank. If there is no evidence of any observable leaks, the appraiser could indicate a value opinion based on the ______________ that the tank is indeed not leaking. assumption hypothetical condition extraordinary assumption extraordinary condition

An appraiser encounters an underground storage tank. If there is no evidence of any observable leaks, the appraiser could indicate a value opinion based on the ______________ that the tank is indeed not leaking. extraordinary assumption

An appraiser must be prepared to demonstrate that the scope of work is sufficient to produce credible assignments results a value conclusion that is within 10% of the sale price the exact, true value of the subject property the same results every time

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

An appraiser must comply with the SCOPE OF WORK RULE when completing: a consulting assignment a BPO assignment an appraisal assignment all assignments, regardless of type

An appraiser must comply with the SCOPE OF WORK RULE when completing: an appraisal assignment

An appraiser observes that an underground tank is leaking. An appraisal could be done of the property in its "as is" contaminated condition or could be appraised under the _______________ that the property is free of contamination. assumption hypothetical condition extraordinary assumption extraordinary condition

An appraiser observes that an underground tank is leaking. An appraisal could be done of the property in its "as is" contaminated condition or could be appraised under the _______________ that the property is free of contamination. hypothetical condition

Another name for the extraction method of site valuation is ground rent capitalization abstraction absorption regression analysis

Another name for the extraction method of site valuation is abstraction

Appraisal regulatory agencies state that one of the problems with the allocation method is it is not a recognized method or technique appraisers often have no workfile support for the ratio they use clients do not understand the allocation method it is only applicable to the appraisal of income-producing properties

Appraisal regulatory agencies state that one of the problems with the allocation method is appraisers often have no workfile support for the ratio they use

Which of these is NOT a technique used for site valuation? Sales comparison Breakdown method Ground rent capitalization Extraction

Breakdown

Wood foundations are more common in areas of the U.S. with sandy soil Canada the southeastern U.S. the midwestern U.S.

Canada

"A ratio of one year's net operating income provided by an asset to the value of the asset" is the definition of _________ rate. discount direct capitalization none of the above

Capitalization

To appraise a non-complex 6-unit property for a federally-related transaction, you need to be a _______________ Licensed Residential Appraiser Licensed Residential Appraiser with at least two years' experience Certified Residential Appraiser Certified General Appraiser

Certified general

Converting an estimate of a single year's expected income into an indication of value is yield approach direct capitalization cost approach adjustment process

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

"The amount by which market rent exceeds contract rent at the time of the appraisal" is the definition of _____________ rent. excess deficit effective percentage

Deficit

Depreciation is a loss in value from Physical factors External market forces Neighborhood factors Any cause

Depreciation is a loss in value from Any cause

GRM assumes there is __________ relationship between rental income and value. no an inverse a direct linear an unlikely

Direct Linear

When calculating operating expenses, the management fee is usually based on a percentage of: Effective gross income Net operating income Pre-tax cash flow Taxable income

Effective Gross Income

_______________ 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 Net operating income Potential net income Operating income

Effective Gross Income

"The amount by which contract rent exceeds market rent at the time of the appraisal" is the definition of ________________ rent. excess deficit effective index

Excess

External obsolescence can be marketwide based on an outdated finish item the result of a layout deficiency the result of a construction defect

External obsolescence can be marketwide

FEMA stands for Federated Environmental Marshlands Association Federal Endangered species Monitoring Agency Forest, Elevated, or Mountainous Area Federal Emergency Management Agency

FEMA stands for Federal Emergency Management Agency

Which is NOT a method of ventilation? electric radiant roof vent cupola kitchen fan

Which is NOT a method of ventilation? electric radiant

Professional or trade associations offering general data include all of the following EXCEPT Federal National Mortgage Association National Association of Home Builders National Association of Realtors Appraisal Institute

Federal National Mortgage Association

Footings should be __________ as wide as the _______________. at least, sill plate twice, slab is deep twice, foundation wall three times, sill plate

Footings should be __________ as wide as the _______________. twice, foundation wall

For appraisals prepared using the UAD, quality of construction for the subject and comparables is rated using Great, Average, Fair, and Bad N, B, or A a scale from Q1 through Q6 whatever scale the client asks you to use

For appraisals prepared using the UAD, quality of construction for the subject and comparables is rated using a scale from Q1 through Q6

The Manufactured Home Construction and Safety Standards is also known as the BOCA Code HUD Code ANSI Standard ISO 9001 Code

HUD Code

Note: Paired data analysis is defined as "A quantitative technique used to identify and measure adjustments to the sale prices or rents of comparable properties; to apply this technique, sales or rental data on nearly identical properties are analyzed to isolate a single characteristic's effect on value or rent. Often referred to as paired sales analysis." The theory is good, but sometimes it can be hard to find adequate data, even in the residential market. The classic case is to find two properties identical in all aspects except, for example, a fireplace, and then attribute the difference in sales price to that feature. It is even more difficult to find very similar commercial or industrial properties to perform paired data analysis.

Here's an example of how paired data analysis works. Example 1, Fireplace adjustment: Sale 1 sells for $185,000 and has a fireplace. Sale 2 was built by the same builder, is right across the street, and is similar in all aspects except that it has no fireplace. It sells for $180,000. Tough one, huh? You can do that in your head. $185,000 - $180,000 = $5,000 It appears that the value of that fireplace in this neighborhood is $5,000. Then we take that $5,000 and use it to make an adjustment for fireplaces in the sales grid. If one of our Comparable sales sold for $182,000 and did not have a fireplace, it would be adjusted up by $5,000 for the lack of a fireplace - a +$5,000 adjustment. The adjusted value would then be $187,000. That is a very simplistic example, but illustrates the process. It doesn't mean that the value of a fireplace is always $5,000. A fireplace in a newer or older house may have a different contributory value. Or the value of a fireplace in a $400,000 house may be different. The value of a fireplace is different based on the neighborhood in which the house is found as well. Note that your adjustment does not need to be derived from the comp set you are using in your appraisal. It can (and probably should) be derived from other sales in the neighborhood then applied to the comps in your comp set based on how those comps compare to your subject property. Once you have found a good paired sales analysis, you can save it in your files and use it again and again in other appraisals so once found, the paired sales analysis can be a valuable tool used over and over again. But they would only be valid in the same neighborhood where they were derived.

If a cost manual is used the result is _____________ cost. replacement reproduction insurable either insurable or reproduction

If a cost manual is used the result is _____________ cost. replacement

If we subtract vacancy and collection loss from potential gross income, we get' effective gross income total operating expenses net operating income pre-tax cash flow

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

If you are appraising a multi-unit property, where at least one unit is rented, the property rights appraised consist of a _______________. leased fee estate leasehold estate divided estate condominium interest

If you are appraising a multi-unit property, where at least one unit is rented, the property rights appraised consist of a _______________. leased fee estate

In a UAD-compliant appraisal report, how would the date October 30, 2018 be formatted? 30-OCT-2018 30/10/18 10/30/2018 10-30-18

In a UAD-compliant appraisal report, how would the date October 30, 2018 be formatted? 10/30/2018

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: Physical depreciation Functional obsolescence External obsolescence Curable physical deterioration

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

In a home's plumbing system, grey water comes from the home's main water supply lines sinks and laundry commodes plumbing leaks inside the walls

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

In applying comparative analysis, an appraiser may employ -qualitative techniques only -quantitative techniques only -quantitative or qualitative techniques, either separately or in combination -quantitative or qualitative techniques separately, but not together

In applying comparative analysis, an appraiser may employ quantitative or qualitative techniques, either separately or in combination Comparative analysis may employ quantitative or qualitative techniques, either separately or in combination.

In most situations, which of these would be considered an example of a superadequacy? gold-plated faucets R-90 insulation in walls and ceilings foundation walls that are 4 feet thick all of these

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

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

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

In the URAR, concerning verification, you are asked to provide the ____________ and the __________. data source, verification source verification source, date of data data source, date of data verification source, email address of source

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

In the sales comparison approach, we adjust the subject the comparable either the subject property or the comparable, depending on the appraiser's discretion comparable listings but not comparable sales

In the sales comparison approach, we adjust the comparable

All of the following are variable expenses, EXCEPT for payroll insurance utilities management

Insurance

It is common in appraisal reports to include a map that shows the location of the ____________. subject property only subject property and support facilities subject property and comparable sales subject property and large employers

It is common in appraisal reports to include a map that shows the location of the ____________. subject property and comparable sales

MLS systems store and maintain their data primarily for the use of: Appraisers Real estate agents and brokers Government agencies The public

MLS systems store and maintain their data primarily for the use of: Real estate agents and brokers

Materials that transfer heat and energy more quickly are called organic materials insulators conductors transferors

Materials that transfer heat and energy more quickly are called conductors

An appraiser has analyzed a set of 12 GRMs extracted from the market. In this set, the number 98 appears three times, and no other number appears more than once. The number 98 is therefore the _______ of this data set. mean median mode range

Mode

Most residential new construction today employs _____________ shingles. slate fiberglass wood metal

Most residential new construction today employs _____________ shingles. fiberglass

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"? Capital Effective gross income Net income Net operating income

Net Operating Income

Of the traditional methods of cost estimating, the least complicated and least accurate method is the _________ method. comparative-unit quantity survey unit-in-place

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

"The periodic expenditures necessary to maintain the real estate and continue production of the effective gross income, assuming prudent and competent management" is the definition of _______________ expenses. fixed variable net operating operating

Operating

Price per square foot of gross living area is a common unit of comparison when appraising offices 2-4 unit properties vacant land one-unit residences

Price per square foot of gross living area is a common one-unit residences

The _______ area of the site is used for family activities and is often found in the _______ yard. public, rear private, front public, neighboring private, rear

Private, Rear

Property in built-up urban residential areas is usually valued on the basis of price per square foot acre front foot lot

Property in built-up urban residential areas is usually valued on the basis of price per square foot Price per Square Foot. Price per square foot comes into play when we are appraising small lots; such as in urban built-up neighborhoods.

Ranking analysis is a ___________ method for estimating site value. quantitative qualitative income-based non-recognized

Ranking analysis is a ___________ method for estimating site value. qualitative

Roof slope is expressed as ____________ over ___________. feet, inches rise, run area, weight size, strength

Rise,run

Segregated cost method is another name for the _______________ method. square foot quantity survey index unit-in-place

Segregated cost method is another name for the _______________ method. unit-in-place

Specific data is usually gathered from an online source, such as the U.S. Census Burea different for each appraisal assignment not as important as general data the same for all appraisals performed in the same market area

Specific data is different for each appraisal assignment

Specific data would include: Property tax rate Education levels Employment rates Lot size

Specific data would include: Lot size

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

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

The Fannie Mae URAR form is designed to report an appraisal of a manufactured home a one-unit property with accessory unit a condominium unit a unit in a cooperative project

The Fannie Mae URAR form is designed to report an appraisal of a one-unit property with accessory unit

The ___________method has good application in valuing land in rural areas and in older, urban areas. extraction subdivision development land residual ground rent capitalization

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

The basic principle underlying the cost approach is the principle of ___________. anticipation contribution substitution externalities

The basic principle underlying the cost approach is the principle of ___________. substitution

The cost approach has good applicability when the improvements we are appraising are _________________. old old, but remodeled new or relatively new historic

The cost approach has good applicability when the improvements we are appraising are _________________. new or relatively new

The cost to produce "an exact duplicate or replica of the building being appraised" is called _____________ cost. reproduction replacement reproducible insurable

The cost to produce "an exact duplicate or replica of the building being appraised" is called _____________ cost. reproduction

The external forces that exert the most pressure are generally at the __________level. neighborhood state national international

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

The formula for applying the income capitalization approach is value = rate / income value = income / rate value = income + rate value = rate - income + expenses

The formula for applying the income capitalization approach is value = income / rate

The ground rent capitalization method is most applicable when appraising a _______ interest. leased fee leasehold fee simple land residual

The ground rent capitalization method is most applicable when appraising a _______ interest. leased fee Ground Rent Capitalization Method. It can only be used when appraising a leased fee interest.

The ground rent capitalization method is most applicable when appraising which of the following __________. vacant land subdivision land a residential building land under a McDonalds restaurant where McDonalds owns the building

The ground rent capitalization method is most applicable when appraising which of the following __________. land under a McDonalds restaurant where McDonalds owns the building

The intended user of an appraisal is the ________ and any other user, as identified by _________. lender, name client, name lender, name or type client, name or type

The intended user of an appraisal is the ________ and any other user, as identified by _________. client, name or type

The most common roofing material currently used in new construction in the U.S. is wood shake or shingle clay tile composition roll roofing fiberglass composition shingles

The most common roofing material currently used in new construction in the U.S. is fiberglass composition shingles

The most common source of brownfield contamination is sulphur cyanide lead petroleum

The most common source of brownfield contamination is petroleum

The number of years that have elapsed since a building was constructed is its effective age actual age remaining economic life economic age

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

The objective for an assignment is its highest and best use purpose lending potential hypothetical condition

The objective for an assignment is its purpose

The primary difference between GRM and GIM is that -GRM uses monthly rent, while GIM uses annual income -GRM is used on larger properties, while GIM is used on smaller properties -GRM uses gross income, while GIM uses net income -GRM is used for mortgage appraisals, while GIM is exclusively used for other intended uses

The primary difference between GRM and GIM is that GRM uses monthly rent, while GIM uses annual income

The principle of _________________ is used when determining how much to adjust for differences between various components of a property. change contribution anticipation increasing and decreasing returns

The principle of _________________ is used when determining how much to adjust for differences between various components of a property. contribution

The replacement cost new of the improvements is $295,500, the land value is $75,000 and the effective age is 17 years. The total economic life is estimated to be 60 years. The subject has deferred maintenance items that total $5,500. After these repairs, the effective age will be reduced to 15 years. What is the value of the property using a modified age-life method? $120,000 $260,000 $292,500 $319,500

The replacement cost new of the improvements is $295,500, the land value is $75,000 and the effective age is 17 years. The total economic life is estimated to be 60 years. The subject has deferred maintenance items that total $5,500. After these repairs, the effective age will be reduced to 15 years. What is the value of the property using a modified age-life method? $292,500

The subdivision development method of land valuation is a variation of the sales comparison method discounted cash flow analysis allocation residual

The subdivision development method of land valuation is a variation of discounted cash flow analysis

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?

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? $252,000

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? $100,000 $120,000 $126,667 $140,000

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? $120,000

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 upward adjustment to the comparable a downward adjustment to the subject an upward adjustment to the subject

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

The summation approach is another name for the _________ approach. cost market income capitalization None of the above

The summation approach is another name for the _________ approach. cost Cost Approach. The cost approach is also known as the summation approach - because the two components of site and improvements are calculated separately and then added together.

The third step in the life cycle of a market area is revitalization growth decline gentrification

The third step in the life cycle of a market area is decline

The three general types of depreciation are: Physical, short-lived, and long-lived Curable, incurable and breakdown Physical, functional, and external Functional, curable, and incurable

The three general types of depreciation are: Physical, functional, and external

Which of the following is a technique for site valuation? Subdivision development Sales comparison Allocation All of the above

Which of the following is a technique for site valuation? All of the above

U-shaped, water-filled pipes that keep sewer gases from venting back into the house are called: Traps J-bolts Baffles Riser pipes

U-shaped, water-filled pipes that keep sewer gases from venting back into the house are called: Traps

Which of the following would NOT be considered a source of specific data? U.S. Census Bureau personal inspection deed tax bill

Which of the following would NOT be considered a source of specific data? U.S. Census Bureau

Which of the following would be considered a source of comparable sale data? MLS appraiser's own files the internet all of the above

Which of the following would be considered a source of comparable sale data? all of the above

We never adjust the _______________. comparable sales sale prices subject property

We never adjust the _______________. subject property

What appraisal term is defined as "The type of data and the extent of research and analyses"? assumption hypothetical condition scope of work workfile

What appraisal term is defined as "The type of data and the extent of research and analyses"? scope of work

What term is defined as "Items of wear and tear on a property that should be fixed now to protect the value or income- producing ability of the property"? functional obsolescence short-lived depreciation long-lived depreciation deferred maintenance

What term is defined as "Items of wear and tear on a property that should be fixed now to protect the value or income- producing ability of the property"? deferred maintenance Deferred maintenance is defined as "needed repairs or replacement of items that should have taken place during the course of normal maintenance."

What type of comparison provides the BEST evidence for a market conditions adjustment? sale and re-sale cost-benefit analysis group comparison extraction

What type of comparison provides the BEST evidence for a market conditions adjustment? sale and re-sale

What type of depreciation would be caused by an old industrial facility located adjacent to a newer house? Physical deterioration Functional obsolescence External obsolescence Short-lived depreciation

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

What type of wiring is most commonly found in new residential construction? knob and tube plastic coated or Romex armored cable or BX insulated aluminum wiring

What type of wiring is most commonly found in new residential construction? plastic coated or Romex

Which of these elements in the adjustment process does NOT apply primarily to commercial or income producing properties? economic characteristics physical characteristics legal characteristics non-realty components of value

Which of these elements in the adjustment process does NOT apply primarily to commercial or income producing properties? physical characteristics

When calculating room and bathroom count in a residential property, how is a "three-quarter bath" typically counted? as a full bath as a half bath as no bath as part of the below-grade finished area

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

When completing an appraisal using the Uniform Appraisal Dataset, in the "Age" section of the sales comparison grid, the appraiser is required to enter effective age only actual age only neither actual and effective ages either actual or effective age, at the appraiser's discretion

When completing an appraisal using the Uniform Appraisal Dataset, in the "Age" section of the sales comparison grid, the appraiser is required to enter actual age only The Uniform Appraisal Dataset (UAD) requires that only the chronological age of the subject and comparables be entered into the "Age" field on the sales comparison grid.

When describing rates, what does the little "o" indicate in Ro? operating overhead optimum overall

When describing rates, what does the little "o" indicate in Ro? overall

When measuring a condominium unit, you should calculate _____ using ______measurements. GLA, exterior GBA, interior GLA, interior GBA, exterior

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

When using Marshall & Swift, adjustments need to be made for construction costs in various locations of the country. This is accomplished through use of quantity surveys local multipliers subjective guessing entrepreneurial factors

When using Marshall & Swift, adjustments need to be made for construction costs in various locations of the country. This is accomplished through use of local multipliers

Which of these is NOT a cause of functional obsolescence? superadequacies wear and tear layout problems outmoded items

Which of these is NOT a cause of functional obsolescence? wear and tear

Which of these is NOT a disadvantage of hot water heat? water in the pipes is susceptible to air blockage baseboard heat units restrict furniture placement it is inefficient and creates drafts and dust pipes can freeze and burst if the power goes off

Which of these is NOT a disadvantage of hot water heat? it is inefficient and creates drafts and dust

Which of these is an example of deferred maintenance? A hallway that is too narrow Outdated kitchen cabinets A bathroom with a tub but no shower A broken window

Which of these is an example of deferred maintenance? A broken window

Which of these is the best source for traffic count information? Chamber of Commerce Department of Energy Department of Environmental Conservation Department of Transportation

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

Which of these would be a fixed expense? maintenance management fee property taxes utilities

Which of these would be a fixed expense? property taxes

Which type of depreciation is generally considered to be incurable? physical deterioration functional obsolescence external obsolescence all of these

Which type of depreciation is generally considered to be incurable? external obsolescence

Which type of expenses do not vary with the occupancy of the property? variable expenses reserves for replacement fixed expenses

Which type of expenses do not vary with the occupancy of the property? fixed expenses

Which type of foundation wall would use a keyway in its construction? stone brick concrete block poured concrete

Which type of foundation wall would use a keyway in its construction? poured concrete

Which type of physical deterioration is considered to be curable? deferred maintenance only long-lived components only short-lived components only no physical deterioration is curable

Which type of physical deterioration is considered to be curable? deferred maintenance only

Which was NOT true of early pipeless furnaces? They had fans They employed ceiling grates They worked by gravity They were not very efficient

Which was NOT true of early pipeless furnaces? They had fans

Which would NOT be considered a source for specific data? title companies flood maps U.S. Census Bureau tax maps

Which would NOT be considered a source for specific data? U.S. Census Bureau

Which zones are identified by FEMA as Special Flood Hazard Areas? zones A and D zones A and V zones Z and W zones A, B, and C

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

With real property, the value of the whole __________ the sum of the separate estates or parts. is always equal to is always less than may be equal to, or less than may be equal to, more than, or less than

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

With regard to electricity, amperage is equal to: pressure volume the speed of light number of circuits

With regard to electricity, amperage is equal to: volume

You are conversing with an appraiser who has been in the profession for 40 years, and he mentions the term "market approach". What approach to value is he probably referring to? income capitalization sales comparison cost discounted cash flow analysis (DCF)

You are conversing with an appraiser who has been in the profession for 40 years, and he mentions the term "market approach". What approach to value is he probably referring to? sales comparison

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? Replacement cost Book cost Reproduction cost Depreciated cost

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

You are performing the cost approach on an old house. You use a cost manual to estimate the current cost of constructing a similar structure, using modern materials. Which type of cost have you estimated? Replacement cost Reproduction cost Depreciated cost Cost to cure

You are performing the cost approach on an old house. You use a cost manual to estimate the current cost of constructing a similar structure, using modern materials. Which type of cost have you estimated? Replacement cost

You can obtain topographic maps from Topozone state Department of Transportation FEMA HUD

You can obtain topographic maps from Topozone

__________ will lose value over time just because of age. Land Buildings Both land and buildings Land, buildings, and chattel items

__________ will lose value over time just because of age. Buildings

How might an appraiser obtain expense ratio information for income properties? reviewing the appraiser's files reading published studies interviewing market participants all of these

all of these

_______________ appraisers can appraise a 15 unit residential property without regard to value or complexity. only Certified General Licensed Residential only Certified Residential both Certified Residential and Certified General

certified general

The valuation process is a systematic procedure employed to provide the answer to a(n) ________ question about the value of __________. appraiser's, real property client's, real property appraiser's, real estate intended user's, an appraisal

client's, real property

Fannie Mae states that in calculating the gross living area (GLA) of a detached home, an appraiser must use __________ measurements. interior exterior exact, to 1/10 of an inch estimated

exterior

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

false

Which influences typically exert the greatest pressure on property values? local influences national influences international influences all influences are equal

local influences

A gross income multiplier is most likely to be used for _______ property units. only one one or two two to three more than four

more than four

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

true

True or False: General data includes items of information on value influences that originate outside the property being appraised. True False

true