Property Decription
Which is true regarding an oral real property appraisal report?
A signed certification must be contained in the workfile.
which best describe township?
36 sections,
During the neighborhood life cycle of growth.
Property values tend to increase
H & B use needed when type of value in an assignment is market value.
H & B use not needed when type of value is use value.
When the ratio of land to total value is calculated for the comparable sale and then applied to the subject.
Allocation method is used.
Pro rata taxes bring taxes up to data & are not part of the acquisition of the property,
but rather are part of the seller's ownership expense.
Quantity survey method:
is a cost method primarily used to develop a reproduction cost of improvement.
Plot plan
is a drawing showing the site and locations of the improvements, in relationship to the site boundaries..
Exposure time in an assignment:
is an opinion developed by the appraiser when it is a component of the definition of value being used.
Capitalization Rate
is used to convert the income potential of a property to its present value.
Rough-in
is when framing is complete & various rough-in components, electric, hvac, plumbing are installed.
once a neighborhood has reached the phase of stability in its life cycle.
it could remain in that phase indefinitely.
In addition to zoning, legal permissibility could relate to:
private deed restriction
in the cost approach to appraisal, depreciation refers to a:
loss in value of the "as is" condition of the subject structure when compared to a new one.
Pivots, sliding, fixed, double-hung & casement are types of
Windows
direct cost are best describe as:
all labor and materials including contractor's overhead and profit.
Age-life, market extraction, Breakdown method
are all ways of estimating accrued depreciation.
Appropriative rights
are granted by government permit independent of land ownership & permit the holder to take water from a particular ody of wter for specified use, such as irrigation.
when an appraiser performs a highest & best use analysis in a market value assignment, it could be defined as a:
financial and economic analysis of the subject property.
conformity generally refers to physical characteristics and has the least affect on
financial feasibility
When an improvement is made that contributes less than its cost:
the law of decreasing returns is being realized.
The primary that the appraiser must take into account when looking at highest and best use:
what is legal and physically possible and would create the greatest return
when might a residual physical segment of a land parcel be considered surplus site?
when it cannot be legally sold separately from the subject or an adjoining parcel
Periodic tenancy
when the lease expired & the tenant paid, & the landlord accepted, the monthly payment of rent.
Annexation is the conversion of personal property 'chattels' to fixtures.
when the property owner annexes personal property, he has converted it to a fixture.
Market disaggregation
looks at only those properties that are truly competitive.
market analysis
looks at the general information of the market area.
if the remaining life is 20%, the depreciation amount is 80%
$10,200 x 80% = $8,160
Calculate the allocation ratio for improvements using the following information. improvement value: $230,000, Total market value of property: $315,000.
$230,000 improvement value / $315,000 total market value = 73%
A full bath is a toilet, sink, & bathing provision.
A half bath is a toilet, sink. A quater bath is a toilet only, rarely found in modern homes.
reversionary value
A property's future value, considering appreciation and deposition cost.
Personal property and concessions are considered in condition of sale.
Airspace is an element of the property rights conveyed.
An ideal way to determine an indication for quantitative market condition adjustment is to
Analyze prior sales of the comparable data.
Analysis of surplus productivity is an observation by an appraiser that becomes useful for:
Analyzing alternative land use options.
An oral real property appraisal report must address the substantive matters contained in an
Appraisal report
A building inspection for the site foundation is performed:
Before the footer are poured.
The appraiser adjust a comparable sale for financing concessions, the comparable data is said to be adjusted for:
Cash equivalency
Which is the final step in determining highest & best use?
Compare the values for the property 'as vacant' & 'as improved' then give an opinion of the highest & best use.
If appraiser a researches & provides comparable data to app for use in app B's assignment, what partsw of uspap apply to app A?
Competency Rule
USPAP requires every appraisal report to clearly state both the effective date of the report. definition of the the report:
Date that is the prospective from which the appraiser is examining the market.
Taping, rocking and floating are terms to describe:
Drywall
Define the boundaries of a particular area consisting of one particular land use, such as multi-family residential, commercial, and industrial.
District
which element is used to describe the characteristics of a property would be considered general data?
Economic Base
A drawing of a building that includes the front, side, and rear views is called:
Elevation drawing
which could limit the highest and best use?
Existing long-term lease.
market area
Form of describing a particular geographic boundary of a particular area, could be more than one neighborhood or district.
The footer is part of the:
Foundation
if a comparable residential building lot with an easement sold for $40,000, and an identical comparable lot without an easement sold for $45,000, what percent is identified as a downward adjustment to a comparable that does not have an easement for a subject that does?
From the date $5,000 has been isolated as a downward adjustment. thus $5,000 divided by the amount it is being subtracted from would be: $5,000/$45,000 = 11.11%
What is the measured distance of a lot that is parallel to the street?
Frontage
Usefulness of a propertyis called:
Functional utility
Porches basement, unfinished attics areas are usually not part of the
GLA description
Site improvement are fencing, sidewalks, driveways.
Garage is general improvement & for the functionality of the property.
fiscal & monetary policies for spending, taxation & debt management that have influence over the supply and cost of money would be defined in which broad force affecting value?
Governmmetal forces generating laws, tax , & fiscal , monetary policies.
If the site as it is currently improvement does not meet current zoning regulations, but existed prior to zoning, it is a legal
Grandfathered non-conforming use.
As the depth of the lot increases, the value per front footage:
Increases at a decreasing rate.
which is used as a benchmark for credibility in an appraisal assignment?
Intended use
when an individual has a freehold estate that last as long as a specified person lives and then the interest goes back to the grantor or the grantor's heirs, what type of freehold estate does the individual have?
Life estate with reversionary interest
A measurement that has only one dimension in lenght.
Linear foot
advertising by appraiser is a topic that is addressed in what part of uspap?
Management section of the ethics rule.
What references a broad related area that likely includes many different land uses, some may conflict with each other and the characteristics of market participants that desire it. It could be an entire city, county, or township in some cases.
Market area
in sales comp approach, what prompts the appraiser to apply an adjustment for a specific property feature?
Market intelligence
An attorney hired an appraiser for a divorce case to determine what a 'typical' buyer would have paid for a property prior to a fire destroyed it last week. what type of value is the attorney seeking?
Market value
considers the known cost to cure of curable items and an effective age as if the items were cured:
Modified age-life method
To another commercial property, which would be a complementary use?
PROPERTY THAT OFFERS DIFFERENT SERVICES AND PRODUCTS.
Sidewalks, swiming pool, Fencing are capital improvement are long-term improvement.
Painting is considered a repair item.
Deterioration due to damage would be considered
Physical deterioration
An access easement would be example of a
Private Access.
an on-site sewage disposal system, well or other utility source that is designed to serve only one property is called:
Private source
deficiency
Property feature that is not adequate, and thus sustains a loss of value.
Reconcilation process as defined by standards rule 1-6
Reconciliation is a 2-part process, first focusing on the quality & quantity of data & then the applicability & suitability analysis.
when is it most appropriate to utilize reproduction cost figures within the cost approach?
Reproduction cost should always be used if data is available.
Collars beams or collar ties are used in
Roof construction
After the appraiser properly defines the problem, what is the next step required in the appraisal process?
Scope of work
Another name for drywall and not used for flooring.
Sheet rock
A workfile in support of an oral real property appraisal report must contain a
Signed Certification
cost approach formula:
Site value + reproduction cost new for the improvements - depreciation = value or another way Depreciated cost new(reproduction cost new for the improvements minus any depreciation) plus indicated site value.
When building a new home, what is the order of the first few construction steps?
Site work, foundation, framing and rough-ins.
Buyer preferences are an element of:
Social forces
indirect cost are:
Soft costs items such as fees and taxes incurred during construction.
Body empowered to discipline appraisers.
State licensing agencies
A distinguishing term associated with a appraisal report.
Summarize
Superstructure
The above grade portion of a commercial building.
which body maintains a national registry of licensed/certified appraisers?
The appraisal subcommittee(asc)
When a feature is market objectionable & paired data is not an option:
The appraiser could rely on the cost to remove the feature as an adjustment.
When valuing a life estate.
The appraiser must first estimate the life expectancy of the measuring life then discount the fututre value at termination to a present value.
Which is a true regarding workfile retention?
The appraiser must have custody of the workfile, or retention and retrieval arrangements with the party that does have custody.
In the sales comparison approach,
The order of adjustments for all types of properties is 1) rights, 2) financing, 3) terms, and 4) time, followed by the remaining adjustments, which can be in any order.
which was instrumental in gaining uspap's acceptance?
Title i of FIRREA
To calculate cubic yards, divide the cubic feet by cubic yard
To calculate cubic feet,multiply widht x depth x height divide by 3 feet.
A metes & bounds survey is being read by ab appraiser. what is always important to ensure that the survey is accurate?
When followed, the final call in the description must connect to the point of begining
if an appraiser performed an appraisal on a property that was being constructed, must he disclose this if the client subsequently request a final inspection of the completed property?
Yes, disclosure of prior services is required if the original agreement did not include the final inspection.
An appraiser's opinion of market value must always be based on
a comprehensive and thorough observation of the actions of market participants.
The governmental force in relationship to value.
Zoning
For an analysis of the state of the economic principle of competition in a particular area an appraiser could:
analyze current listings available in the particular market.
the process of combining two or more parcels into one with no increase in value.
assemblage
assignment conditions include
assumptions,extraordinary assumptions, hypothetical conditions, laws & regulations, jurisdictional exceptions that affect scope of work.
a property's future value, considering appreciation and disposition cost, is its:
reversionary value
what level of participation does the client have in defining the problem leading to the scope of work decision?
communication with the client is important, but the appraiser alone determines the relevant property characteristics.
Absorption study or analysis
concentrates on the number of properties that can be sold in the marketplace during a certain period of time.
what is a characteristic of quitclaim deed?
contains no warranties
When a feature is market objectionable and paired data is not an option, the appraiser could rely on the
cost to remove the feature as an adjustment.
External obsolescence
could impact the financial feasibility of a proposed improvement.
As opposed to replacement cost, when considering a deficiency or superadequacy, reproduction cost new.
duplicates all deficiencies and superadequacies.
In a mass appraisal assignment, the type of value is always
determined in problem identification.
straight-line depreciation
divides the depreciation equally over a set number of years ex: property economic life of 80 years ,the straight-line dep is 1.25 per year (100% divided by 80 years )
a building has an actual age of 20 yrs, a total economic lie of 50 years, & a remaining economic life of 40 yrs. Accrued dep as a lump sum percentage is:
effective age is 10 years (50-40 = 10) age life dep is calculated by taking effective age & dividing it by total economic life 10 / 50 = 20%
how is the cost approach useful for highest and best use analysis?
evaluating the feasibility of proposed project.
Determining financial feasibility of a contemplated highest and best use should include an assessment of
external obsolescence
Extraction method used to indicate land value when an appraiser can establish the contributory value of the improvements.
extraction method based on analyzing a comparable sale by subtracting the depreciated cost of the improvements from the sale price. net result is the value of the land.
segmentation
focuses on demand
appraisal report
has more than one intended user.
Surplus site
has no stand-alone highest and best use
Restricted appraisal report
has only one intended user.
an oral real property appraisal report must
have a signed certification in the workfile.
Breakdown method
is a method used in calculating depreciation in the cost approach.
Functional utility
is a physical characteristic of the property.
Truss framing
is a roof framing
The scope of work performed by the appraiser in an assignment:
is an ongoing process that may require modification.
Credibility of the scope of work:
is measured in the context of the intended use.
Value
is not an inherent characteristic of a product or service, but rather is created through the perception of market participants.
market conditions
is of particular importance when developing a value opinion. or based upon liquidation value.
disclosure of prior services
is only required for the appraiser who accepts the assignment & signs the certification.
growth
is the stage in a neighborhood life cycle when property values tend to rise as development activity begins and continues
a true statement regarding going concern value?
it makes the assumption that the business would operate into the future.
The confidentiality agreement:
may be voided or modified to allow disclosure.
unit in place method
method that is widely used by contractors that entails the cost addition of all the major building components.
An oral real property appraisal report:
must address the substantive matters contained in an appraisal report.
an appraiser has been asked to appraise a one-acre segment of a five-acre parcel. USPAP requries the appraiser to:
obtain data from sources reliable for the intended use of the appraisal
Fee simple conditional
provides that the owner may hold the estate only as long as some specified act or condition does or does not occur. thus, if the condition is not observed, the owner could forfeit title.
as long as the client and the client's needs is clearly identified,
the AMC is duly authorized agent of the lender, the lender can be named as the client.
when is the cost approach considered to be most applicable for developing an opinion of value?
the cost approach is most applicable for special-use properties, or when the improvements are relatively new and there is a limited amount of accrued depreciation.
if an item is deemed to be curable for the purpose of depreciation, what can be said about the item?
the cost to cure is equal to or less than the contributory value.
uspap requires the appraiser to analyze market conditions as part of
the development process
when the remaining economic life is significant & there is no evidence to indicate a forthcoming change of use is indicated by the market,
the highest & best use conclusion should be as improved.
most important consideration within the highest and best use analysis of a vacant site?
the ideal use of the site
what must be known in order to develop an opinion of investment value?
the investor's specific investment goals and requirements.
What is the primary difference between a general warranty deed & a limited warranty deed?
the period of time prior to the grantor's ownership that the title will be warranted.
regression is related to conformity-
the properties surronding a particular property
entrepreneurial profit is best described as:
the reward associated with the risk involved in a real estate project.
what is the primary purpose of the highest and best use analysis?
to establish the contributory value of the improvements.
extraction method of site valuation
total improved value minus - depreciated improvement value equals = Site value.
extraction method is best described as a technique:
used to indicate land value when an appraiser can establish the contributory value of the improvements.
A pier and beam foundation:
uses wood, steel, or concrete piers that are set into the ground into a footing.
The theory is of anticipation states that:
value created by the expectation of future benefits.
what is the primary consideration in deciding whether depreciation is curable?
value is added beyond the cost to cure.
A roof's pitch is the:
vertical rise of the roof in inches, divided by the horizontal span of the roof in feet.
absorption
views both supply and demand
Renovations and repairs results lowering effective age,
while remaining economic life is extended
Sash is another term for:
window framework
in recertifying the value of a previously appraised property, the appraiser.
would confirm if the condition of a prior appraisal was met.
Life estate
would most often require the valuation of a partial interest.
