appraisal
The transaction price of a comparable property is $200,000. The appraiser determines that the comparable is 5% more desirable because of special financing; the conditions of the sale affected the subject negatively by 8%; the location of the comparable is 15% better but it is physically 5% worse than the subject; and since the comparable sold, the market has improved by 20%. What is the indicated value of the subject (rounded)?
$187,000
If a property's net operating income is $32,000 and the estimated cap rate is 8%, what is the value of the property?
$400,000
Kelly would like to subdivide and sell off her 1-acre parcel that is 396 feet wide and fronts a street as separate lots. If she creates lots that are 66 feet wide and 110 feet deep and sells them for $75,000 apiece, how much money will she make?
$450,000
High __________ benefits a retail location and negatively affects a residential location.
traffic volume
While reconciling a final value conclusion, an appraiser should never do any of the following, except:
use averaging as a check and balance.
The reconciliation process:
uses factual data and statistics, but is ultimately not a mathematical process.
Operating expenses that vary based upon numerous criteria such as the level of occupancy, the income a property generates, and the amount of services provided by the owner to the tenants are called:
variable expenses.
An inquiry into the circumstances surrounding and affecting a sale is known as:
verification.
The type of measurement that is produced when you multiply the width, the length, and the depth (or height) is the:
volume.
A basement that is not completely underground with a door that connects the livable space as well as a door to the grade level outside is called a(n):
walkout.
The appraiser's __________ for a particular assignment consists of all the documentation necessary to support the analyses, opinions, and conclusions conveyed in the appraisal report.
workfile
Also known as discounted cash flow analysis, __________ is a method where the value of future benefits is discounted to a present value.
yield capitalization
Megan found three comps that recently sold. After applying a market derived cap rate, the market value for these comps is as follows: $574,511; $499,996; and $525,444. Rounded to the nearest thousand, the final comparable values are:
$500,000; $525,000; $575,000
Meredith found three comps that sold. After applying a market derived cap rate, the market value for these comps are as follows: $574,511; $499,996; and $525,444. What are the final comparable values (rounded to the nearest thousand)?
$500,000; $525,000; $575,000
Use the 3 bedroom/2 bath sample below to answer the following question. 8181 High St.$15,000122 Kenny St.$103,000211 Road Blvd.$99,900214 Burk Ln.$67,500706 Hazelnut Hwy.$95,000743 Eicher Way$95,0001031 N 26th Ave.$66,0002050 7th Ave.$33,0007107 Oceans Ave.$74,900 The median house price for the 3br/2ba sample is:
$74,900
If a property's net operating income is $88,000 and the estimated cap rate is 11%, what is the value of the property?
$800,000
Use the 3 bedroom/2 bath sample below to answer the following question. 8181 High St.$15,000122 Kenny St.$103,000211 Road Blvd.$99,900214 Burk Ln.$67,500706 Hazelnut Hwy.$95,000743 Eicher Way$95,0001031 N 26th Ave.$66,0002050 7th Ave.$33,0007107 Oceans Ave.$74,900 The mode for the 3br/2ba sample is:
$95,000
A starter home that Earl is appraising contains 978 square feet of above grade improvements and a garage that contains 168 square feet. Earl estimates the land value at $75,000 from recent comparables. If the cost estimating service Earl uses has a base cost of $81 per unit of above grade improvements and $23 per unit for unfinished improvements and a regional multiplier of 1.19, what is the reproduction estimate for the subject home?
$98,868
Which of the following equations illustrates how to calculate accrued depreciation using the economic age/life method?
(Effective age ÷ Economic life) × (Replacement or Reproduction cost) = Accrued Depreciation
Kelly has just completed her inspection of the subject property. Her measurements identified the total area at 1,524 square feet. The attic measured 298 square feet and the combined area of the 2 1/2 baths measured 132 square feet. The kitchen and dining area measured 102 square feet and the backyard measured 121 square feet. What is the gross living area for this property?
1,105 sq. ft.
Which of the following is a larger measurement?
1/4 mile square
Ramon took out a one-year interest only loan of $10,000 at 9%. If his final monthly payment must include the last interest payment and the loan balance, how much will it be?
10075
A single-family home with a swimming pool that recently sold for $265,000 has monthly rental income of $2,500. What is the GRM?
106
240% expressed as a decimal is:
2.4
How is 240% expressed as a decimal?
2.4
5/2 expressed as a percentage is:
250%
A flower shop was purchased in the summer of 2004 for $500,000. It sold in the summer of 2006 for $450,000. Using the sale-resale analysis, determine the annual rate at which this market is decreasing.
5%
A barn was built 40 years ago; however, it has been abandoned and looks 20 years older than it actually is. What is its effective age?
60
Which of the following is an advantage of purchasing a financial calculator?
A financial calculator can compute the Six Functions of 1 Dollar tables.
All other things being equal, what is the best indicator of value for a three-bedroom single-family home?
A three-bedroom single-family home
Which of the following is not a market extraction technique for estimating depreciation?
Abstraction
__________ depreciation is depreciation that has already occurred.
Accrued
What is the last step in the cost approach process?
Add the land value estimate, the depreciated value of the improvements, the entrepreneurial incentive, and the value of the site improvements together to calculate the value estimate by the cost approach
Which statement is incorrect regarding the direction of the adjustments?
Adjustments are always made to the subject.
__________ are not technically considered part of the USPAP document.
Advisory Opinions
Which method of valuing land is based upon the principle of balance as well as on the concept of contributory value?
Allocation method
The appraiser should do which of the following when reconciling?
Analyze all relevant data to determine a final value based on the applicable appraisal approaches
What is the main principle behind the income approach?
Anticipation
In which situation can the sales comparison approach be used?
Any property where sufficient comparable data is available
The sales comparison approach can be used in which of the following situations?
Any property where sufficient comparable data is available
When is a workfile required?
Any time an appraisal is performed
The __________ Report is the most elaborate report and contains the most detailed information.
Appraisal
Regarding reconciliation, which of the following may be used as a check and balance and is an excellent way to analyze the figures used throughout the appraisal?
Averaging
Why should an appraiser round the final value estimate?
Because exact figures cease to be an estimate
Which of the following occurs when a lender asks an appraiser to inflate his or her estimate of value for a property to a certain degree, providing justification for a higher selling price?
Bogus sale
An appraiser analyzes each type of accrued depreciation separately, measures the amount of each, and totals the individual estimates to determine the total accrued depreciation in which of the following methods?
Breakdown method
USPAP contains several sections that can help avoid fraudulent situations. In particular, the __________ states that an appraiser should not perform an appraisal outside of his or her market or geographic area without taking the steps necessary to learn the important nuances of the different market.
COMPETENCY RULE
USPAP contains several sections to help avoid fraudulent situations. Which of the following states that an appraiser should not perform an appraisal outside of his or her market or geographic area without taking the steps necessary to learn the important nuances of the different market?
COMPETENCY RULE
Which of the following do appraisers not include in operating expenses since they are not reflective of annual expenses?
Capital improvements
Which of the steps of the appraisal process includes applying the relevant approach(es) (sales comparison approach, cost approach, income approach) to value?
Collect, verify, and analyze all relevant information
Which method of cost estimation is based upon costs of similar structures computed on a unit of measurement?
Comparative unit method
Which of the following sections in the ETHICS RULE states that appraisers must be impartial and unbiased and that they may not act as advocates?
Conduct
The ETHICS RULE is divided into which subsections?
Conduct, Management, and Confidentiality
Which of the following is NOT a key factor in determining the value of a site because it influences how the site may be used?
Cost
The __________ is the most basic and straightforward method to calculate accrued depreciation and its basic premise states that the cost required to replace an item is the amount lost due to accrued depreciation.
Cost to cure method
Which of the following is the most basic and straightforward method to calculate accrued depreciation?
Cost to cure method
Which of the following is a measurement for volume?
Cubic foot
Which lots are found on dead-end streets?
Cul-de-sac lot
Which of the following is the first section of USPAP?
DEFINITIONS
__________ refers to items that are in need of repair due to lack of upkeep
Deferred maintenance
Regarding the basic steps of the appraisal process, which step includes identifying the client and other intended users, the intended use of the appraiser's opinions and conclusions, the type and definition of the value sought, and the effective date of the appraiser's opinions and conclusions
Define the problem
When using the cost approach on older buildings, what does the appraiser subtract from the cost estimated for the subject's improvements?
Depreciation
__________ obsolescence takes place when influences that are external to the property adversely affect that property.
External
Which type of depreciation is almost always incurable because it is physically impossible to cure or too expensive to be worth curing?
External obsolescence
Which of the following is also known as the abstraction method?
Extraction method
What is the most common type of home heating (and cooling) system?
Forced air system
Which type of heating system uses ductwork, blowers, and registers?
Forced air system
__________ are always composed of two numbers: one on top and one on bottom.
Fractions
__________ refers to deficiencies, superadequacies, or simply undesirable features found in a building.
Functional obsolescence
Which of the following benefits a retail location and negatively affects a residential location?
High traffic volume
More than anything else, which of the following determines the value of property?
Highest and best use
__________ costs include all other costs, such as building permit fees and interest on a construction loan.
Indirect
Which of the following is the decision to use replacement cost or reproduction cost usually related to?
Intended use of the appraisal
After careful analysis, Betty calculates the adjusted values for the three best comparable properties are $400,000, $420,000, and $425,000. What is the indicated value of the subject?
It depends on which property or properties Betty gives most weight in her analysis.
All of the following statements are correct regarding the cost approach, except:
It is based on the depreciated value of the site, plus the market value of the improvements.
Which of the following is an advantage of using the cost approach?
It is the best indicator of value when the building is specialized or there is a lack of comparable properties.
Which method of valuing land is based upon the premise that the income of a property is generated by both the land and the improvements and that there is a relationship between the income a property produces and the value of that property?
Land residual technique
Of the following statements regarding the cost approach to value, which is true?
Like the other two approaches to value, the cost approach to value is not applicable to every appraisal assignment.
Regarding the cost approach to value, which of the following statements is true?
Like the other two approaches to value, the cost approach to value is not applicable to every appraisal assignment.
__________ is caused by the physical location of the subject property and its proximity to a negative influence.
Locational obsolescence
__________ items are components of the improvement that are expected to last as long as the building itself.
Long-lived
The __________ section in the ETHICS RULE discusses the disclosure of certain fees and commissions, identifies prohibited compensation arrangements, and discusses certain prohibited advertising and solicitation issues.
Management
Which of the following sections in the ETHICS RULE discusses the disclosure of certain fees and commissions, identifies prohibited compensation arrangements, and discusses certain prohibited advertising and solicitation issues?
Management
Which of the following is a disadvantage of the sales comparison approach?
Not as useful with insufficient or inaccurate data
__________ are those expenses necessary to maintain the property and to help ensure the continued production of income.
Operating expenses
__________ are usually reserved for litigation purposes, but may be used at any time if requested by the client.
Oral reports
Which of the following is a market-derived ratio reflecting the relationship between the net operating income a property generates and its value?
Overall capitalization rate
Which of the following is a one-page mission statement that explains the goals of the USPAP document and describes its overall structure?
PREAMBLE
In which of the following situations do appraisers not apply the four tests of highest and best use?
Personal property
__________ of a building and its equipment includes physical wear and tear, disintegration, decay or rot, or physical damage of any kind caused by the elements.
Physical deterioration
Which of the following is one of the four tests of highest and best use?
Physically possible
What is the dollar amount of money borrowed?
Principal
Regarding the six functions of one dollar, which of the following is not one of the three ways to look at money?
Projecting the holding period of the investment
Which of the following is not a variable expense?
Property tax
Ben is hired by a lender to appraise Sarah's gas station because Sarah is using the gas station as collateral for taking out a loan to purchase a retail store. What is this an example of?
Real property appraisal
Fannie Mae and Freddie Mac require which of the following estimates in appraisals for loans they purchase?
Reproduction cost
The _______ Report option may be used when the intended user of the report is only the client.
Restricted-Use
Which of the following appraisal report options is the briefest presentation of an appraisal and contains the least detail?
Restricted-use
__________ is the lump sum amount the investor expects to receive upon sale of a property at some future point in time (return of investment).
Reversion
Which of the following is not one of the three sections of the ETHICS RULE?
Review
Adjustments to the comparables must be made in a specific sequence if the adjustments are entirely percentage adjustments. Which adjustment should be made first?
Rights conveyed
Which of the following STANDARDS covers the requirements for reporting a real estate appraisal and provides three reporting options?
STANDARD 2
__________ establishes requirements for the development and communication of an appraisal review.
STANDARD 3
Which of the following STANDARDS involves mass appraisal, which is appraising more than one property using standard computerized techniques?
STANDARD 6
Which of the following approaches to value involves the process of developing an opinion of value by using sales of similar properties to estimate the value of the subject property?
Sales comparison approach
Regarding STANDARD 2, which appraisal report option contains the most detailed information?
Self-Contained Appraisal Report
__________ items are expected to be replaced or repaired on a consistent basis throughout the life of the structure.
Short-lived
Which of the following statements regarding the Standards is true?
Some standards deal with aspects of appraisal that are not real estate related.
The purpose of the __________ is to clarify, interpret, explain, or elaborate on a Rule or Standard.
Statements on Appraisal Standards
The purpose of which of the following is to clarify, interpret, explain, or elaborate on a Rule or Standard?
Statements on Appraisal Standards
Which of the following items would not be considered a site improvement?
Street lights
Which method of valuing land may be used to value land when subdivision and development of the subject site represents the highest and best use of the property?
Subdivision development analysis
The __________ appraisal report option is the most commonly used report option.
Summary
Which of the following appraisal report options is the most commonly used report option?
Summary
Regarding STANDARD 2, the __________ is the most common as it fulfills the minimum requirements for lenders to process their loans.
Summary Appraisal Report
Regarding STANDARD 2, which appraisal report option is the most common as it fulfills the minimum requirements for lenders to process their loans?
Summary Appraisal Report
Which of the following types of lots is one that is fronted head-on by a street?
T-intersection lot
Which statement regarding gross income multipliers is incorrect?
The EGIM is commonly used when valuing 1-4 unit residential properties.
Which statement regarding gross rent multipliers is incorrect?
The GRM is the least commonly used income approach method when valuing 1-4 unit residential properties.
Regarding the cost approach, which statement is not true?
The cost approach is very precise for old buildings.
Which of the following statements regarding the income approach is not true?
The income approach to value is solely independent of a property's income, real or potential.
Suppose that the lender has asked the appraiser to use Form 2055 for a certain appraisal. What does this typically indicate?
The lender would like the appraiser to use only the sales comparison approach for that appraisal.
What is the commonality of landscaping, sprinkler systems, driveways, brickwork, and fences?
They are considered on-site improvements
What is the first test for highest and best use?
To verify if the use is physically possible
Which method of cost estimation breaks down the cost of a building into the cost of its component parts?
Unit-in-place method
Which method of cost estimation would use the following list? Foundation $30 per linear foot, Floor Construction $3.60 per sq. ft., Framing $4.50 per sq. ft. of support area, Roof Construction $3.70 per square, Exterior Walls $10.20 per sq. ft., Windows $14.20 per sq. ft.
Unit-in-place method
__________ is the portion of the site that is suitable for building and can be limited by zoning regulations, such as setback requirements.
Usable area
__________ is the amount of income lost due to vacant units in a property and is deducted from the potential gross income.
Vacancy loss
Each of the following is a formula used in direct capitalization, except:
Value = NOI ÷ EGIM
Which of the following is not a formula used in direct capitalization?
Value = NOI ÷ EGIM
__________ is an inquiry into the circumstances surrounding and affecting a sale.
Verification
Of the following, which is an advantage of the cost approach?
Very precise for newer buildings
Which of the following is an advantage of the cost approach?
Very precise for newer buildings
Which type of measurement is produced when you multiply the width, the length, and the depth (or height)?
Volume
When is advocacy unacceptable according to the Conduct section of the ETHICS RULE?
When acting as an appraiser
When is the comparison approach least applicable?
When appraising occupied land
When should appraisers not use the income approach?
When current rental data and operating statements are not available
__________, also known as discounted cash flow analysis, is a method where the value of future benefits is discounted to a present value.
Yield capitalization
An appraiser's inspection of the property includes:
a general description of the structure and a visual inspection of the exterior and interior of the dwelling and any other site improvements that may affect the home's value.
As a market data resource, a party to a transaction is:
a principal, like the buyer or the seller.
Effective age ÷ Economic life) × (Replacement or Reproduction cost) is used to calculate:
accrued depreciation.
The chronological age of the structure is its:
actual age.
The extraction method is a variation on the __________ and is based on the same principles.
allocation method
Interest is defined as the:
amount charged for the use of money.
When reconciling, the appraiser should:
analyze all relevant data to develop an opinion of final value based on the applicable appraisal approaches.
Entrepreneurial incentive is based on the principle of:
anticipation
The main principle behind the income approach is:
anticipation.
While researching comparable properties, Frank finds an identical comp in the same tract of homes. He notes that as part of the sales agreement, the seller partially financed the sale. Frank should:
apply a cash equivalency formula to the comparable to adjust for the non-market financing.
In an Appraisal Report, the appraiser would describe all of the following, except the:
appraisal procedures not followed.
Professional appraisers have developed an orderly, systematic method to arrive at an estimate of value. This method is known as the:
appraisal process.
The appraiser's opinion of value, typically presented in a written format, is referred to as a(n):
appraisal report.
The tests for highest and best use of a property:
are considered sequentially.
Regarding reconciliation, __________ may be used as a check and balance and is an excellent way to analyze the figures used throughout the appraisal.
averaging
The steps for the sales comparison approach include all of the following, except:
averaging adjustments.
The __________ method determines the capitalization rate based on the fact that the funds used to purchase a property typically come from two primary sources: buyers and lenders.
band of investment
A __________ is the part of a house that is partially or entirely below ground.
basement
A __________ occurs when a lender asks an appraiser to inflate his or her estimate of value for a property to a certain degree, providing justification for a higher selling price.
bogus sale
Appraisers check the appropriateness of the subject property's value by:
bracketing.
In the __________, an appraiser analyzes each type of accrued depreciation separately, measures the amount of each, and totals the individual estimates to determine the total accrued depreciation.
breakdown method
Appraisers do not include __________ in operating expenses since they are not reflective of annual expenses.
capital improvements
The __________ is a procedure whereby the sales prices of comparable properties selling with atypical financing are adjusted to reflect financing that is typical in a market.
cash equivalency technique
The commonality of enamel, latex, epoxy, lacquer, shellac, and stain is that they are types of:
coating
Donna, an insurance appraiser, is hired to appraise a residence that recently burned down. When Donna appraises the home as if it were still in existence, she is using all of the following, except a:
comparative market analysis.
All of the following are types of commonly used foundations, except:
crawlspace foundations.
The income approach has limited usefulness when:
current rental data and operating statements are not available.
There are numerous companies engaged in the business of selling data to real estate appraisers called:
data services.
The period that sets apart a whole number from a fractional part of that number is called a(n):
decimal point.
In a fraction, the bottom number is called the:
denominator.
A loss in value to a property due to any cause is known as:
depreciation.
A comparative market analysis includes all of the following, except:
determine a probable selling price of a property.
When verifying data, should an appraiser encounter conflicting information, he or she must:
determine which source is more reliable and give it more credence.
An appraiser's goal is to:
develop an opinion of the value of a property.
Parties to the transaction include all of the following, except the:
district attorney.
The __________ of calculating accrued depreciation is one of the easiest to use and is the method most residential appraisers use most frequently.
economic age/life method
A(n) __________ is any aspect of a real estate transaction or any characteristic of the property that may affect the property's sales price.
element of comparison
Any aspect of a real estate transaction or any characteristic of the property that may affect the property's sales price is called a(n):
element of comparison.
The __________ is a labeled diagram or cutaway of the home detailing its features and building components, both interior and exterior.
elevation sheet
All of the following principles influence land value, except:
expectation.
Which of the following is an inefficient heating system?
fireplace
The whole numerals are to the left of the decimal point. The ones are in the:
first position to the left of the decimal point.
Any numerals to the right of the decimal point are less than one. The 10th position is the:
first to the right of the decimal point.
A __________ is a lot that is usually behind another lot fronting a main street.
flag lot
When a person buys a property at one price and quickly sells it to another at an inflated price, __________ occurs.
flipping
The appraiser should note other improvements made to the site, including all of the following things around the perimeter of a building, except the:
garage
The appraiser should note other improvements made to the site. These improvements include all of the following things around the perimeter of a building, except:
garage.
The __________ is the total amount of all enclosed floor areas and does include basements and attics.
gross building area
Size for the interior of the home is reported in terms of __________, which is the total amount of finished, above ground habitable space.
gross living area
Off-site factors include all of the following, except:
high housing prices.
A(n) __________ is defined in USPAP as "that which is contrary to what exists but is supposed for the purpose of analysis."
hypothetical condition
Regarding the appraisal process, an appraiser should use reconciliation:
in every instance.
The __________ approach is the process of developing an opinion of value based on the amount of income that the property is expected to produce.
income
All of the following are variable expenses, except:
income taxes.
A property valued at $300,000 contains a single-car garage in a neighborhood that predominately contains two-car garages. The typical house value in the neighborhood is $310,000. A contractor estimates the cost of converting the single car garage into a two-car at $15,000. This is an example of:
incurable functional obsolescence.
A property valued at $500,000 contains a two-car garage in a neighborhood that predominately contains three-car garages. The typical house value in the neighborhood is $510,000. A contractor estimates the cost of converting the two-car garage into a three-car at $15,000. This is an example of:
incurable functional obsolescence.
In the Appraisal Report, the appraiser would summarize all of the following, except the:
information not considered.
The appraiser must note the __________ (access to the site or property) and __________ (exit from the site or property) and how they contribute to the property's use.
ingress/egress
The decision to use replacement cost or reproduction cost is usually related to the:
intended use of the appraisal.
The term __________ includes the client and any other party identified by the appraiser as users of the appraisal report.
intended user
Parties intending to use an appraisal report are called __________ by USPAP.
intended users
The dollar amount charged for the use of money is known as:
interest.
Which of the following is an advantage of the sales comparison approach?
it is easy to understand how adjusted comparables can represent a current value for the subject.
A __________ is the least desirable lot because of the lack of privacy and visibility.
key lot
The cost approach recognizes that there are two major components in real estate. They are:
land and improvements.
The __________ is a method of valuing land that is based upon the premise that the income of a property is generated by both the land and the improvements and that there is a relationship between the income a property produces and the value of that property.
land residual technique
To find the __________, add all the variates together and divide by the number of variates.
mean
In the __________, curable physical and functional items of accrued depreciation are identified.
modified age/life method
The __________ is the ratio of the loan amount (principal) to the annual sum of the individual loan payments.
mortgage constant
The __________ is an invaluable source of data that is provided by local real estate boards for its members and is designed as a tool for marketing real estate.
multiple listing service
A requirement of STANDARD 2: Real Property Appraisal, Reporting is that an appraiser:
must clearly and accurately set forth the appraisal in a manner that will not be misleading.
A(n) __________ does not use a form; instead, it is an account of the particulars of the appraisal, usually written in a free-form style.
narrative style report
Subtracting operating expenses from effective gross income yields the:
net operating income.
Residential property in an area rezoned for commercial use is an example of a(n):
non-conforming use.
The steps for the sales comparison approach include all of the following, except:
not reconciling adjustments.
The position of the decimal point determines the value of the:
number
In a fraction, the top number is called the:
numerator.
A __________ charges excessive points, fees, and interest rates to unsuspecting buyers.
packed sale
The __________ is used to identify the amount of an adjustment when at least two sales are found that are virtually identical in all aspects except one.
paired sales analysis
An appraiser will apply the four tests of highest and best use for all of the following, except:
personal property.
Converting a gas station into an orange grove is not:
physically possible due to soil contamination.
The first test for highest and best use is to verify if the use is:
physically possible.
Roy purchases two adjoining lots. His appraisal estimates that the value of the lots combined into a single lot will almost double the total value of the lots if kept separate. This added value is known as:
plottage.
The simplest income to calculate is the __________, which is the maximum income a property could generate.
potential gross income
The dollar amount of money borrowed is known as:
principal.
The sales comparison approach is most useful when appraising all of the following, except:
property types that are never bought and sold on a regular basis.
A __________ style home is a one-story home with wood, masonry, or stucco for the exterior that is built on a very shallow crawlspace or directly onto a concrete slab.
ranch
A lender hired Erin to appraise Andy's retail store because Andy is using the store as collateral for taking out a loan to purchase a warehouse. This is an example of a:
real property appraisal.
The dollar amount required to construct improvements having the same utility and quality as the subject property using current construction materials, methods, and techniques is known as the:
replacement cost.
Fannie Mae and Freddie Mac require __________ estimates in appraisals for loans they purchase.
reproduction cost
A(n) __________ is an assignment in which an appraiser is contracted to develop an opinion regarding another real estate appraiser's work as well as develop his or her own value opinion of the subject property.
review appraisal and a real estate appraisal
When using the __________, the appraiser compares the subject site with other vacant land sites that have been sold recently.
sales comparison method
Appraisers apply adjustments to the:
sales prices of the comparable properties.
The __________ in an assignment is the amount of work that is done and applies to the type and extent of research done and the type and extent of analysis applied.
scope of work
The whole numerals are to the left of the decimal point. The 10s are in the:
second position to the left of the decimal point.
Any numerals to the right of the decimal point are less than one. The 100th position is the:
second to the right of the decimal point.
Once a tract has been prepared for construction, it then becomes a:
site.
When an appraiser shows up at the subject property, it must first be determined if it is a tract or a:
site.
An area equal to one foot by one foot square is known as a:
square foot.
The Uniform Standards of Professional Appraisal Practice are the:
standards that all licensed and certified appraisers in each state are expected to follow.
The __________ is a method of valuing land that may be used to value land when subdivision and development of the subject site represents the highest and best use of the property.
subdivision development analysis
The principle of __________ states that the maximum value of a property is set by the cost of acquiring an equally desirable and valuable substitute property.
substitution
Which term refers to all of a home's below grade improvements?
substructure
Below grade improvements refer to the:
substructure.
A house was built with 1-foot thick exterior walls in an area where the standard width is approximately 6 inches. This home suffers from:
superadequacy.
The __________ refers to all the above grade improvements.
superstructure
The accuracy and the reliability of the sales comparison approach hinges upon:
the accuracy of the adjustments applied to the comparable properties.
When using the sales comparison approach in the assignment, the appraiser should verify all of the following, except:
the adjustments made to the comps are illogical and in bad order.
When using the income approach, the appraiser should verify all of the following, except:
the comparable sales are incomparable to the subject property.
The building residual technique is used when:
the land value is known.
The appraiser should verify all of the following when using the cost approach in the assignment, except:
the market rents are mathematically accurate.
When using the cost approach in the assignment, the appraiser should verify all of the following, except:
the market rents are mathematically accurate.
Appraisers should try to use comparable properties that include:
the same property rights as the subject property.
Non-economic value is best estimated by:
there is no widely accepted method for estimating non-economic value.
The whole numerals are to the left of the decimal point. The 100s are in the:
third position to the left of the decimal point.
Any numerals to the right of the decimal point are less than one. The 1,000th position is the:
third to the right of the decimal point.
Sue owns a 6-acre parcel that is 396 feet deep that she would like to subdivide and sell off as separate lots. If she creates lots that are 60' × 44' and sells them for $20,000 apiece, how much money will she make?
$1,980,000
A comparable sold 9 months ago for $268,000. The appraiser concludes that property values have increased by 5% per year. What should the adjustment be (rounded)?
$10,000
A comparable sold ten months ago for $350,000. Appraiser Andy concludes that property values have increased by 5% per year. What should the adjustment be?
$14,595
__________ costs refer to costs directly related to labor and materials.
Direct
What is the commonality of t-bars, a framework of steel or metal channels suspended by wires, and pre-cut acoustic tiles?
Dropped ceilings
Which of the following is not a limitation of the economic age/life method?
Easiest method to use and understand
Which of the following occurs when changes in the local economy affect the subject property's value?
Economic obsolescence
__________ age describes the age of a structure based on its condition and usefulness.
Effective
When collection loss and vacancy are deducted from a property's potential gross income, what is the resultant amount?
Effective gross income
__________ is the compensation the owner or developer expects to gain from the undertaking.
Entrepreneurial incentive
What is the first step in the cost approach process?
Estimate the value of the land component of the subject property
Which two appraisal disciplines do not have two Standards associated with them?
Mass Appraisal and Appraisal Review
In which of the following methods are curable physical and functional items of accrued depreciation identified?
Modified age/life method