General Report Writing and Case Studies
Studies have shown that we retain more of what we __________ than with any other method Read Hear Say See on Television
Say
Which of these words is misspelled? Medieval weird seperate parallel
seperate
What is the purpose of including a table of contents or index in an appraisal report? so the intended user can locate information within the appraisal report easily and quickly to comply with USPAP requirement because it demonstrates a knowledge of good narrative report writing because a table of contents is always necessary for intended users to understand the report
so the intended user can locate information within the appraisal report easily and quickly
When writing an immediate neighborhood or vicinity description what do you specifically want to summarize about the subjects access? How it can ben accessed on weekends and holidays specifically how the subject is connected to the road/highway network how pedestrians can access it via a concrete or brick pavers type sidewalk if there is a helicopter port on the roof of a nearby building
specifically how the subject is connected to the road/highway network
When writing the location and surroundings portion of the narrative appraisal report which of the following should the appraiser be sure to include? the market rent for the subject statistics that reflect decline the most recent sales data of the subject the current or estimated tax assessment for the subject
statistics that reflect decline
In a narrative appraisal report, what should the neighborhood/immediate vicinity description focus on? subjectively describing the subject property's immediate neighborhood the types of housing that exist in the subject propertys immediate neighborhood national trends that affect communities like the subjects the types of commercial buildings that exist in the subject propertys immediate neighborhood
subjectively describing the subject property's immediate neighborhood
How would you explain how the appraiser obtained a market derived cap rate? That the appraiser derived the cap rate from information obtained from recent appraisals of other properties in the marketplace that the appraiser derived the cap rate from opinions obtained from speaking with other appraisers and industry participants active in the current marketplace that the appraiser derived the cap rate from information obtained from recent sales in the market place that the appraiser derived the cap rate after speaking with local tax assessor and ascertaining what they are currently using in the market place
that the appraiser derived the cap rate from information obtained from recent sales in the market place
The fannie mae 1004 form (the URAR form) may be used to report an appraisal on all of these answers units in planned unit development co op units condominium units
units in planned unit development
Why should an appraiser be conscious of his or her audience when writing an appraisal report? Because not all of the readers of the appraisal report will be real estate experts because not all of the readers of the report will be college graduates because the appraiser never knows who might receive and read a copy of the appraisal report because appraisal reports should be written to an eight-grade reading level
Because not all of the readers of the appraisal report will be real estate experts
When writing a narrative appraisal report in what order does USPAP require that the material be presented? -USPAP has no such requirement -in four sections: information, property description, the approaches used, the remediation and final value -the same as detailed in the appraisal of real estate b the AI -in the order that the requirements appear in Standards Rule 2-2
-USPAP has no such requirement
Where are the appraisers general assumptions and limiting conditions usually included in an appraisal report? -Scattered throughout the body of the appraisal report -after the description of improvement and as part of the explanation of the appraisal process -in the addendum but referenced elsewhere in the report -these are not typically included in the report, they are retained in the appraisers workfile
-in the addendum but referenced elsewhere in the report
When we read we retain what percentage of the information we learned? 10 15 20 50
10
An appraiser is appraising a 3-unit residential property for a fannie mae lender. which form should he use to report the results of this appraisal? 1004 1073 1025 either 1004 or 1025
1025
a site is 314.5 feet by 472.8 feet. how many acres is this? 2.38 3.11 3.41 3.94
3.41
Use the __________ voice whenever possible Passive Possessive Active Interrogative
Active
Where can the appraisers certification be place in an appraisal report? Anywhere within the report only in the addendum only attached to the cover letter it does not need to be contained within the appraisal report
Anywhere within the report
why is it generally not important to discuss the public school system (unless it is something unique) in a location and surroundings section of a commercial appraisal report? Because every community has one because it does not affect the subject property's value because it would consume too much time to research it thoroughly because discussing the school system is considered a discriminatory practice
Because every community has one
Which of the following would you use to explain why you had to make adjustments to the comparable sales you used in the sales comparison approach? Because there are differences between the comparables used and the subject property you had to make adjustments to the data of the comparable sales in order to equate the data to the subject for meaningful comparison purposes because the data secured is not always fully reliable you had to make adjustments to the data of the comparable sales in order to equate the data to the subject for meaningful comparison purposes because the subject is older than all of the comparable typically used by appraisers in a sales comparison approach, appraisers always need make adjustments to the data of the comparable sales in order to equate the date to the subject for meaningful comparison purposes because no two properties are exactly alike you selected a comparable that was most like the subject that you had to make adjustments because its sale occurred many years ago
Because there are differences between the comparables used and the subject property you had to make adjustments to the data of the comparable sales in order to equate the data to the subject for meaningful comparison purposes
Why should you summarize the existence of on site amenities such as swimming pools and tennis courts? because the intended user would see them in the aerial photograph and wonder why you did not mention them Because they exist and enhance the overall quality of the site although they do not affect value, they are a source of liability and they mean higher insurance rates and other property expenses because you observed and photographed them during your physical inspections
Because they exist and enhance the overall quality of the site
What is the best way to write discuss and explain the four tests used to determine the highest and best use of a property? By separately explaining and expounding on each one by identifying them as legally permissible, financially feasible, socially acceptable, and maximally productive by tailoring the highest and best use analysis to meet the clients needs and expectations by providing a detailed highest and best use study in a restricted appraisal report
By separately explaining and expounding on each one
When writing the summary of the buildings and improvements in addition to summarizing the construction details what is the entire body of your summary also going to do for the intended user? Convey a sense of quality about the building and improvements explain the age and efficiency of the building and improvements demonstrate your level of knowledge about construction instill confidence that you adequately inspected and measured the buildings
Convey a sense of quality about the building and improvements
When the cost approach is necessary for credible appraisal assignment results what does USPAP require the appraiser to do? Develop an opinion of site value by an appropriate appraisal method or technique analyze such comparable sales data as are available to indicate a value conclusion use a hypothetical condition in developing on indication of value develop and estimate of building replacement cost by use of national cost service publication
Develop an opinion of site value by an appropriate appraisal method or technique
When an on site swimming pool, clubhouse and or tennis courts are featured at an apartment complex aside from providing a basic physical description what else should an appraiser be sure to also explain about each? IF the are free to tenants and their guests or if there are charges if they are available 365 days a year any repairs that have been made to the pool or tennis court within the prior five years if swimming and tennis lessons are available to residents
IF the are free to tenants and their guests or if there are charges
What are the four sections into which some appraisal organizations recommend separating a narrative appraisal report? Introduction, appraisal problem and scope of work, presentation of the data, and analysis and conclusion cover page, sales comparison section, cost approach, income approach USPAP requirements, location and surroundings, property description, addendum Location and surroundings, property description, explanation of the three approaches to value addendum
Introduction, appraisal problem and scope of work, presentation of the data, and analysis and conclusion
A productive way to start writing a narrative appraisal report is to include an appraisal summary or summary of salient facts. What should such a summary include? Many of the USPAP required items that can simply be stated the facts obtained from a rental market study the facts obtained for a sales market study an overall description of the appraisal process
Many of the USPAP required items that can simply be stated
When identifying a subject property in a photograph or on a map what is the color that should be used to outline or indicate the subject property? Orange Green Blue Red
Red
What is the purpose of including a table of contents or index in the appraisal report? So the intended user can locate information within the appraisal report easily and quickly to comply with USPAP requirement Because it demonstrates a knowledge of good narrative report writing because a table of contents is always necessary for intended users to understand the report
So the intended user can locate information within the appraisal report easily and quickly
What is the purpose of describing the appraisers scope of work within the appraisal report? TO provide an explanation to the client and any intended users about what the appraiser did to solve the appraisal problem to provide the opinion of value to the client to explain the characteristics of the property being appraised to provide information to support the appraisers signed certification
TO provide an explanation to the client and any intended users about what the appraiser did to solve the appraisal problem
Which of the following would you use to summarize that the loading docks of an industrial building were tailgate height? That they are approximately 4' above grade and basically align with the floor height of the average truck trailer that they were on grade but could accommodate tractor trailer floor height loading by using a tow motor to unload cargo that tractor trailer trucks were able to drive into the building to unload their tailgate height cargo that an on grade building can use a load leveler to effectively create loading that matched the height of the average truck trailer
That they are approximately 4' above grade and basically align with the floor height of the average truck trailer
Which of the following is USPAP requirement? The appraisal report must contain sufficient information to enable the intended users of the appraisal to understand the report properly The appraisal report must contain maps and photographs to enable the intended users to visualize the subject property the appraisal report must contain a copy of the appraisers current license the appraisal report must be free of grammatical and typographical errors
The appraisal report must contain sufficient information to enable the intended users of the appraisal to understand the report properly
Which of the following should the transmittal letter include? The appraisers opinion of value the appraisers fee for the assignment a detailed description of what the appraisal report contained the time period that it took the appraiser to complete the assignment
The appraisers opinion of value
Which of the following should the transmittal letter include? The appraisers opinion of value the appraisers fee for the assignment a detailed description of what the appraisal report contained the time period that it took the appraiser to complete the assignment
The appraisers opinion of value
Today, onsite parking is critical to most properties. when summarizing a sites parking what should an appraiser always include? The number of spaces that appropriate ratio per unit per room of per sf of building area and compliance with the zoning code the width of the handicap designated spaces that the parking is paved and striped if the metered cost of any on street parking or the daily cost of nearby garage parking
The number of spaces that appropriate ratio per unit per room of per sf of building area and compliance with the zoning code
When you have finished writing an appraisal report what benefit is there in waiting a day and re-reading the appraisal report before formally finalizing it? To ensure it has a logical flow and that all concepts are easy to understand by people who are not real estate experts to make sure you include a glossary of terms to be certain you did not include any cliches to double check that you signed and dated the certification page
To ensure it has a logical flow and that all concepts are easy to understand by people who are not real estate experts
Which of the following items would typically only be applicable when summarizing a mobile home park? Type of concrete home pads pool and club house tennis courts central laundry
Type of concrete home pads
Which of these methods of communication did not first occur in the 1800s? Telephone telegraph pony express US mail
US mail
When writing a narrative appraisal report in what order does USPAP require that the material be presented? USPAP has no such requirement in four sections: information, property description, the approaches used, the remediation and final value the same as detailed in the appraisal of real estate by the AI in the order that the requirements appear in STandards rule 2-2
USPAP has no such requirement
Which of the following is the definition of a hypothetical condition? An assumption directly related to an assignment which, if found to be false, could alter the appraisers opinions and conclusions a condition that is contrary to what is know to exist on the effective date but is supposed for the purposed of the analysis an assumed condition that is not contrary to what exists but is supposed to not exist for the purpose of the analysis an assumption directly related to an assignment which, if found to be invalid, could alter the appraisers opinions and conclusions
a condition that is contrary to what is know to exist on the effective date but is supposed for the purposed of the analysis
Which of the following is the definition of a hypothetical condition? an assumption directly related to an assignment which, if found to be false could alter the appraisers opinions and conclusions a condition that is contrary to what is known to exist on the effective date but is supposed for the purpose of the analysis an assumed condition that is not contrary to what exists but is supposed to not exist for the purpose of the analysis an assumption directly related to an assignment which, if found to be invalid could alter the appraisers opinions and conclusions
a condition that is contrary to what is known to exist on the effective date but is supposed for the purpose of the analysis
When a commercial lease required the tenant to pay and perform and pay for all of the property's real estate taxes and operating expenses which of the following terms would you use to denote such a lease a gross lease a gross plus lease a net, net, net or a fully net lease a landlords lease
a net, net, net or a fully net lease
Which of the following is the most thorough definition of a narrative appraisal report the act of orally communicating the opinion of value to the client a written document that identifies all of the information in the appraisers workfile a written document that is solely for the use of the intender user and explains how the appraisal report was developed and prepared a written document that identifies and supports how the appraiser developed the opinion of value
a written document that identifies and supports how the appraiser developed the opinion of value
In which section of a narrative appraisal report do appraisers usually guide general assumptions and limiting conditions? addendum scope of work cover page letter of transmittal
addendum
Words that end in -ive or -ice are most likely possessive pronouns prepositions interrogative pronouns adjectives
adjectives
Words used to describe an occurrence, a place, a thing or a person are called adjectives adverbs descriptive pronouns verbs
adjectives
Which of the following appraisal reporting options is typically the most detailed? A restricted appraisal report a summarized appraisal report an appraisal report a complete appraisal report
an appraisal report
Where can the appraisers certification be places in an appraisal report? anywhere within the report only in the addendum only attached to the cover letter it does not need to be contained within the appraisal report
anywhere within the report
Some leases contain clauses that are potentially harmful to a property's income such as an early termination option. If such clauses do exist in an apartment lease, which of the following would you use to explain that they are usually not very significant? because apartment leases are typically written for one year terms with no formal renewal options so such lease will end in a year or less effectively removing the potential harm because apartment owners can often raise their rents more than once a year because apartment owners take security deposits they can retain the security deposit to off set the harm of any such clause Because an apartment owner that would agree to a harmful clause usually negotiates some type of off set in the lease to counter act the harm caused
because apartment leases are typically written for one year terms with no formal renewal options so such lease will end in a year or less effectively removing the potential harm
When appraising an industrial building why is important to summarize the ceiling height under beam? because it affects how high an occupants product can be stacked and therefore it also affects rent and leasing because the building plans may not clearly show the various heights under beam because it can benefit the appraisers ability to forecast the market rent because the appraiser is legally required to measure and report the ceiling height to within 1 inch
because it affects how high an occupants product can be stacked and therefore it also affects rent and leasing
Why is it good to summarize any improvements made in the last three years and their costs when summarizing an existing building? To show that you were serious about including a lot of information in your appraisal report because it conveys both a sense of the current condition of the building and the level of care and maintenance by the owner because the appraiser can use those credits to estimate future improvement costs because the appraiser can use that knowledge to make a recommendation about the buildings management
because it conveys both a sense of the current condition of the building and the level of care and maintenance by the owner
Why is a thorough, meaningful, well written description of a subject propertys location in an appraisal report so important? it adds significant length to the appraisal report because location can have the single greatest effect on value it instills confidence in the intended user about the appraisers professionalism because location is the only factor that matters in valuation
because location can have the single greatest effect on value
Why can it be meaningful to obtain and include a list of the community's largest employers in an appraisal report? because USPAP specifically requires a list of the top 5 employers in the region be included in any written report because the names and types of companies and industries create an impression about employment stability and desirability because the intended user may want to copy the appraisal report and send it to these entities because the intended user may already know of their potential existence and your inclusion will confirm that information
because the names and types of companies and industries create an impression about employment stability and desirability
When writing a county summary why can it be meaningful to identify and include the county seat? Because that is usually where the county government is seated and conducts its business to explain to the intended user what county seat is in case he/she does not know to show that you understand what a county seat is because they are a significant if not major focus of business and commerce within a county
because they are a significant if not major focus of business and commerce within a county
When the lease of a retail tenant contains a co-tenancy and or non-compete clause in its lease why is it important to explain and summarize the existence of such a clause? Because the appraiser is expected to develop an opinion of legality and enforceability of the lease documents because they can potentially have negative impact on a property's future income and value because the client may not have informed you the such clauses existed because they will lead to the tenants filing a bankruptcy
because they can potentially have negative impact on a property's future income and value
Why is it important to write about and explain trends in the appraisal report? because trends affect the thinking and prognosis about the current and long term value of the subject property because the appraisal is a guarantee of value for 120 days into the future because analysis of past events is a guarantee of what will happen in the future trends are not important; the client only wants to know what is currently in existence
because trends affect the thinking and prognosis about the current and long term value of the subject property
Why should you describe the existence of any casinos or proposed casinos and or casino reports or convention centers? Because the number of casinos and convention centers in the country continues to grow because where they exist they often contribute taxes to the local economy because they can be used to rejuvenate a blighted area because while they can be considered as a recreational facility they are usually also major sources of employment
because while they can be considered as a recreational facility they are usually also major sources of employment
In an appraisal report on an improved property what two things do you explain that the highest and best use is applied to? The height and use of the building both the land as though vacant and to the property as if improved demolition justification and replacement or reproduction cost financial feasibility and comparison of comparable
both the land as though vacant and to the property as if improved
When a site has frontage on more than one street how should the appraiser summarize that? With an aerial photo showing both frontage areas, with the subject parcel highlighted in yellow by identifying which is primary and which is secondary frontage by summarizing which the zoning classification treats as the front, side, and back for front, side and back yard building distance purposes by summarizing which provides the best ingress and egress
by identifying which is primary and which is secondary frontage
If you are explaining that parking income is included as additional income what else is it prudent for an appraiser to investigate and discuss, in addition to stating the income from parking? establish its durability by reviewing the past 10 years history verified by tax returns conduct a survey of what other developments or nearby public parking garages charge for parking and discuss if the subjects charges are above below or in line with the competition ascertain if the spaces are leased daily, monthly, semi-annually or annually and if the leases are guaranteed ascertain the number of spaces and the current and historic applicable vacancy factor
conduct a survey of what other developments or nearby public parking garages charge for parking and discuss if the subjects charges are above below or in line with the competition
What type of fire departments are usually found in a township? a trainee fire department one with a paid full time police department where the officers also serve as the fire department either a volunteer or a paid full time department one with four engines and a hook and a ladder
either a volunteer or a paid full time department
According to USPAP an appraisal report can be delivered orally written either orally or written
either orally or written
Which of the following are important to every community and should be discussed in a location and surroundings section> employment stability and job growth the nearest national park or other tourist attraction the number of commercial properties in the community the number of retail facilities in the community
employment stability and job growth
Which of the following may be the best opportunity for clear communication because of a combination of data interchange> email face to face written telephone
face to face
Which of the following may be the best opportunity for clear communication because of a combination of data interchange? email telephone written face to face
face to face
Occasionally a lessor will write a lease starting that any rent will not begin until a month or more after occupancy. Such clause is usually given as an inducement to lease. This effectively reduces the actual average annual rent of the lease. Which of the following terms would you use to denote such inducement? a lessees benefit e lessors incentive free rent
free rent
If applicable why should a scope of work description also explain items that an appraiser did not investigate? Because most appraisal report forms require this information frequently an intended user will have some appraisal knowledge and indicating that was not investigated or performed will answer a question that may be in the intended users mind to show that the appraiser did more work than appeared in the appraisal report to explain why the appraiser chose the report option that he/she used
frequently an intended user will have some appraisal knowledge and indicating that was not investigated or performed will answer a question that may be in the intended users mind
What is the source of functional obsolescence? Functional obsolescence comes from increased vacancy due to the functions of some of the tenants being terminated Functional obsolescence come from some of the buildings equipment (HVAC, elevators, etc) not functioning property and needing repairs functional obsolescence comes from a physical wearing away of the building and improvements functional obsolescence comes from a flaw in the property such as a design, materials, other thing that adversely affects the utility
functional obsolescence comes from a flaw in the property such as a design, materials, other thing that adversely affects the utility
if public water and sewer is not currently available to on site what should an appraiser investigate and (if appropriate) summarize? if public water and sewer will ever be available in the near future if the community has municipal utilities authority or similar agency the cost of such public water and sewer the quality of the drinking water that is supplied by the local water company
if public water and sewer will ever be available in the near future
In an appraisal report, generally, where should you include maps, photographs, graphs, and similar exhibits? within the body only within the addendum only in the body, in the addendum, or in both places in a separate report sent at a later date
in the body, in the addendum, or in both places
The comment to Standard 2 of USPAP says "the form, format, and style of a report are functions of the needs of __________ Government agencies who use appraisals clients only borrowers intended users and appraisers
intended users and appraisers
Who, which, and what are examples of adverbs interrogative pronouns possessive pronouns adjectives
interrogative pronouns
Which is not true of the coastal barrier resource system (CBRS) it applies to certain ocean front areas it applies to fresh water areas it applies to the great lakes it applies to all 50 states
it applies to all 50 states
When explaining and summarizing the steps appraisers take to develop a sales comparison approach, which is the first step you would explain that they do? Verify the information select a unit of comparison research the market for comparable sales, listings etc write a draft narration of the sales comparison approach
research the market for comparable sales, listings etc
When discussing when one or more of the three traditional approaches to value is inapplicable what might you say to explain when the cost approach becomes unreliable? It becomes unreliable and often is not used when appraising an income producing property that has aged or was constructed with somewhat unique physical characteristics that make it difficult to estimate its income and expenses it becomes unreliable and often is not used when appraising a proposed property or a property that is being constructed with somewhat unique physical characteristics that make it difficult to estimate its income it becomes unreliable and often is not used when a property has aged or was constructed with somewhat unique physical characteristics that make it difficult to estimate its cost new or estimate its depreciation accurately it becomes unreliable and often is not used when a property is brand new and was constructed with somewhat unique physical characteristics that make it easy to estimate its cost new
it becomes unreliable and often is not used when a property has aged or was constructed with somewhat unique physical characteristics that make it difficult to estimate its cost new or estimate its depreciation accurately
Why should you consider the age of a community's population when writing a location and surroundings section and analyzing trends? age does not really need to be considered it can be interpreted for purposes of estimating a populations formal education level it can be appropriate when a community has an atypical level of an age group as it can atypically impact certain business and real estate uses such as retail and or medical facilities it can be helpful when forecasting residential real estate values
it can be appropriate when a community has an atypical level of an age group as it can atypically impact certain business and real estate uses such as retail and or medical facilities
Which statement is true regarding the 1004 MC addendum form? It is still required by Fannie Mae but not Freddie Mac it is no longer required by Fannie Mae or Freddie MAc it is an outdated form and should never be used the department of veterans affairs still requires its use in 2-4 family appraisal reports
it is no longer required by Fannie Mae or Freddie MAc
In a perfect environment what should a well written narrative appraisal report do? It should convince a lender client to provide financing it should convince a potential purchaser to acquire the property it should tell the intended user where the property is located it should tell a story about the property and be designed to lead intended users to draw the same conclusion stated by the appraiser
it should tell a story about the property and be designed to lead intended users to draw the same conclusion stated by the appraiser
The location and surroundings section of a narrative appraisal can be an assemblage of what three portions? Property history, population data, neighborhood description description of the subject site, its neighborhood and the county in which it is located macro are description, micro area description, and a neighborhood vicinity description macro are description, property description, and neighborhood analysis
macro are description, micro area description, and a neighborhood vicinity description
How long should a transmittal letter typically be? one paragraph one to two pages three to four pages five to ten pages
one to two pages
The scope of work rule applies to ___________ assignments? all only appraisal only appraisal review only appraisal and appraisal review
only appraisal and appraisal review
Connecting words that show the relationships of a noun or a pronoun to some other word in a sentence are called adjectives adverbs propositions prepositions
prepositions
What can being highly visible from a highway do for a property? convince prospective tenants that it is a good building to occupy show from a ride by that there is more than adequate parking available at the property provide a natural, no cost advantage afford great views to tenants
provide a natural, no cost advantage
Which of the following statements is FALSE about USPAP requirements and appraisal reports> USPAP establishes min content requirements for both types of real property appraisal reports USPAP does not set forth a specific way to address the items it requires to be included in an appraisal report the USPAP required items do not need to be addressed in a specific location or section of an appraisal report the USPAP required items must be addressed in the order they appear in Standard 2
the USPAP required items must be addressed in the order they appear in Standard 2
Which of the following would you use to explain the best way for an appraiser to obtain the current equity dividend rate applicable to properties like the subject? The best way is by speaking with local tax assessors to see what they are using the best way is by speaking with area real estate brokers and property managers the best way is to base it on the current asking prices of similar properties currently listed for sale in the market place the best way is to obtain it from recent sales in the market place
the best way is to obtain it from recent sales in the market place
Which of the following describes or explains what is meant by the effective date of value of an appraisal? the date the appraisal was completed the date the report was signed by the appraiser the date that the opinion of value applies to the date the appraisal was tendered to the client
the date that the opinion of value applies to
The definitions used by accountants and appraisers are different so which of the following would you use to summarize the depreciation as employed by appraisers? The annual percentage decline in the cost new that was expended to create the building the difference between the contributory value of an improvement and its cost at the time of the appraisal the amount of decline that can be applied to the book cost of a property for income tax purposes the annual percentage of a buildings original cost by dividing the original cost by its estimated life (in years) and taking that amount as a tax deduction
the difference between the contributory value of an improvement and its cost at the time of the appraisal
Which of the following items would only be applicable when summarizing an office building? the floor ration efficiency factor the type of HVAC the interior wall finishes the type of roof and roof structure
the floor ration efficiency factor
The growth patterns and development concentrations of virtually every county in America can be tied to the initial and current transportation arteries that serve them beginning with lakes, rivers, and streams, then cart paths, local roads and railroad lines their proximity to national parks and resorts the availability of government grants their proximity to the state capital
the initial and current transportation arteries that serve them beginning with lakes, rivers, and streams, then cart paths, local roads and railroad lines
When summarizing how an appraiser can develop an overall cap rate which of the following terms would apply to the technique employed? the breakdown method the mortgage equity or band of investment technique the quantity survey method equity capitalization
the mortgage equity or band of investment technique
The appraisers signed certification that is included in a real property appraisal report must comply with which of the following? The requirements of the Appraisal Institute the requirements of the american society of appraisers the requirements of USPAP standards rule 2-3 The requirement of the 13th edition of the "the appraisal of real estate"
the requirements of USPAP standards rule 2-3
What appraisal term is defined as the process of deriving a value indication for the subject property by comparing similar properties that have recently sold with the property being appraised, identifying appropriate units of comparison and making adjustments to the sale prices (or unit prices as appropriate) of the comparable properties based on relevant market derived elements of comparison? the sales comparison approach the cost approach the income approach the investors approach
the sales comparison approach
Which of the following USPAP requirements must be summarized in an appraisal report? The type of appraisal report the property rights appraised the scope of work the use of the real estate as of the effective date of the appraisal report
the scope of work
Which of these sentence uses a wrong word? The shutters are stationary the weather is seasonal today the garage is empty the home was unique
the weather is seasonal today
What is a good way to show and explain the various terms of the commercial leases of a building you are appraising to the intended user? To photograph the front page of each lease and include it in the report so the intended user will know what you read them by including a rent roll by including exact copies of each lease in the reports addendum to create and include lease summaries that detail the important terms of each lease
to create and include lease summaries that detail the important terms of each lease
Which of the following would you use to explain the way of creating tenant improvement reserve estimates in the direct capitalization method? to estimate reserves in Direct Cap the appraiser uses the per square foot replacement or reproduction cost obtained from a national building cost manual and divides that by 10 (assumes a 10 straight line approach) to estimate reserves in Direct Cap the appraiser relies upon the depreciated book cost of the building and improvements and divides that by 10 ( assumes a 10 year straight line approach) to estimate reserves in Direct Capitalization a simple dollar per square foot allowance is applied to the entire leasable area of the building as appropriate with exceptions for formally rated tenants with lease terms of 10 years or more to estimate reserves in direct capitalization an appraiser contacts mortgage lenders and other appraisers to see what they are using
to estimate reserves in Direct Capitalization a simple dollar per square foot allowance is applied to the entire leasable area of the building as appropriate with exceptions for formally rated tenants with lease terms of 10 years or more
Which of the following would you use to explain the way of creating tenant improvement reserve estimates in the yield capitalization method? to estimate reserves in the yield capitalization or DCF method, year by year TI cost estimates need to be made and used based on estimated lease roll over and tenant renewal or replacement to estimate reserves in Yield cap or DCF method an appraiser estimates the effective age of the improvements and divides that by the total economic life to arrive at a percentage of income that is attributable to reserves to estimate reserves in the yield cap or dcf method the appraiser relies upon the depreciated book cost of the building and improvements and divides that by 10 assumes a 10 year straight line approach) to estimate reserves in the yield cap or dcf method the appraise uses the per sf replacement or reproduction cost obtained from a national cost manual and divides that by 10(assumes a 10 year straight line approach)
to estimate reserves in the yield capitalization or DCF method, year by year TI cost estimates need to be made and used based on estimated lease roll over and tenant renewal or replacement
Why is it meaningful to show a county's population for more than just eh current time period? To show that you have researched the countys or states database for population statistic's to provide an accurate estimate of the potential future population 10 years from now so that the client can see population trends dating back at least 100 years to form opinions about county population growth and trends
to form opinions about county population growth and trends
What does best practice suggest an appraiser should do concernng summarizing a property's compliance with the ADA? Ingore the ADA requirements stating within the general assumptios and limiting condtions that the appraiser is not qualified to address them to investigate the property for compliance and where appropriate explain and discuss it in the appraisal report discuss the potential for grandfathering that can eliminate any concern about making future improvements to bring the property into compliance check to see if the lavatories halls elevators and parking comply with the ada guidlines and if so declare the building in compliance and of no concern
to investigate the property for compliance and where appropriate explain and discuss it in the appraisal report
As the appraiser is usually not present when the appraisal is delivered to the intended users, why should it be well written? to allow intended readers to feel they go their moneys worth to reflect well upon the appraiser and his or her competency as well as the instill confidence in the intended users about the appraisers skills, professionalism, opinions, and conclusions to assure that the appraiser and report are afforded the respect they deserve to demonstrate that it was proofread and corrections made it before it was delivered
to reflect well upon the appraiser and his or her competency as well as the instill confidence in the intended users about the appraisers skills, professionalism, opinions, and conclusions
When describing a townships largest employers which of the following should not be overlooked? tourism and agriculture the ages of the various employment companies the size of the various employers buildings the top 100 employing companies, listed by size
tourism and agriculture
Ultimately what question must the reported conclusion of highest and best use answer? How much would the most probably buyer of the subject property pay for it one year from now? how much did the improvements cost when they were new several years ago? what would the most probably buyer of the subject property do the finance acquisition? what would the most probable buyer of the subject property do with the property to maximize its value?
what would the most probable buyer of the subject property do with the property to maximize its value?
