1 Flashcards
1
Q
“The process of deriving a value indication for the subject property by comparing market information for similar properties with the property being appraised, identifying appropriate units of comparison, and making qualitative comparisons with or quantitative adjustments to the sale prices (or unit prices, as appropriate) of the comparable properties based on relevant, market-derived elements of comparison.”
A
The Sales Comparison Approach
2
Q
The appraisal principle that states that when several similar or commensurate commodities, goods, or services are available, the one with the lowest price will attract the greatest demand and widest distribution. This is the primary principle upon which the cost and sales comparison approaches are based.
A
The Principle of Substitution
3
Q
“The concept that the value of a particular component is measured in terms of its contribution to the value of the whole property, or as the amount that its absence would detract from the value of the whole”.
A
The Principle of Contribution
4
Q
“The result of the cause and effect relationship among the forces that influence real property value.”
A
The Principle of Change
5
Q
“The perception that value is created by the expectation of benefits to be derived in the future”.
A
The Principle of Anticipation
6
Q
Of the three appraisal approaches, the Sales Comparison Approach relies most heavily on the economic principle of:
Contribution
Substitution
Equalization
Anticipation
A
Substitution
7
Q
“The result of the cause and effect relationship among the forces that influence real property value” is the definition of the principle of
Anticipation
Supply and Demand
Change
Balance
A
Change
8
Q
“In economic theory, the principle that states that the price of a commodity, good, or service varies directly, but not necessarily proportionately, with demand, and inversely, but not necessarily proportionately, with supply.
A
The Principle of Supply and Demand
In a real estate appraisal context, the principle of supply and demand states that the price of real property varies directly, but not necessarily proportionately, with demand and inversely, but not necessarily proportionately, with supply” .
9
Q
“Between purchasers or tenants, the interactive efforts of two or more potential purchasers or tenants to make a sale or secure a lease.
A
The Principle of Competition
10
Q
“The principle that real property value is created and sustained when contrasting, opposing, or interacting elements are in a state of equilibrium”.
A
The Principle of Balance
11
Q
“The appraisal principle that real property value is created and sustained when the characteristics of a property conform to the demands of its market” .
A
The Principle of Conformity
12
Q
“In appraisal, the concept that the value of an inferior property is enhanced by its association with better properties of the same type”.
A
Principle of Progression
13
Q
“In appraisal, the concept that the value of a superior property is adversely affected by its association with an inferior property of the same type”.
A
Principle of Regression
14
Q
In appraisal, off-site conditions that affect a property’s value.
A
Principle of Externalities
15
Q
- the ability to properly identify the problem to be addressed; and
- the knowledge and experience to complete the assignment competently; and
- recognition of, and compliance with, laws and regulations that apply to the appraiser or to the assignment.”
A
Competency
16
Q
“An appraiser must………..correctly complete research and analyses necessary to produce a credible appraisal”.
A
STANDARD 1 of USPAP
17
Q
“In reporting the results of a real property appraisal, an appraiser must communicate each analysis, opinion, and conclusion in a manner that is not misleading”.
A
STANDARD 2
18
Q
Adjustments made in the sales comparison process always start with:
The subject
The comparable
Either subject or comparable
Neither the subject nor comparable
A
The comparable
19
Q
The first step in the Sales Comparison Approach procedure is
Verify the information
Select relevant units of comparison
Define the scope of work
Research the market
A
Research the market
20
Q
Which of the following is the sales comparison formula?
Price of comparable ± adjustments = value of subject
Price of comparable – adjustments = price of subject
Price of subject ± adjustments = value of comparable
Price of subject + adjustments = value of comparable
A
Price of comparable ± adjustments = value of subject
21
Q
Which of the following is NOT a common unit of comparison when appraising 2-4 unit properties?
Price per SF of GLA
Price per room
Price per SF of GBA
Price per bedroom
A
Price per SQ of GLA is not used. We use Price per SF of GBA.
22
Q
The principle of competition can be between
Purchasers only
Tenants only
Purchasers and tenants
Purchasers and tenants as well as between sellers and landlords
A
Purchasers and tenants as well as between sellers and landlords
23
Q
“The result of the cause and effect relationship among the forces that influence real property value” is the definition of the principle of
Anticipation
Supply and Demand
Change
Balance
A
Change
24
Q
The principles of progression and regression are illustrations of what happens when the principle of ______________ is violated.
Conformity
Balance
Change
Substitution
A
Balance
25
"A group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises"
neighborhood
26
"A neighborhood characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural"
district
27
"the area associated with a subject property that contains its direct competition".
market area
28
"Items of information on value influences that derive from social, economic, governmental, and environmental forces and originate outside the property being appraised".
General Data
29
"The area associated with a subject property that contains its direct competition" is the definition of
District
Neighborhood
Market area
Suburb
Market area
30
"Details about the property being appraised, comparable sale and rental properties, and relevant local market characteristics"
Specific Data
31
A web site that is a portal to over 200 federal agencies is
usa.gov
HUD.gov
Census.gov
Appraiser.gov
usa.gov
32
The “normal course of business” in an area is determined by:
The actions of an appraiser’s peers only
Expectations of parties who are regularly intended users for similar assignments only
Both actions of appraiser's peers and expectations of intended users
Fannie Mae and Freddie Mac
Both actions of appraiser's peers and expectations of intended users
33
Which of the following is NOT an element of comparison in the Sales Comparison Approach?
Real property rights
Use
Conditions of sale
Intended User
Intended User
34
MLS information is compiled for the convenience and use of
Appraisers
Buyers
Sellers
Sales agents
Sales agents
35
Lenders might be sources of information in all of the following areas EXCEPT
Commercial transactions
Lease terms
Interest rates
Industrial transactions
Lease terms
36
When collecting comparable sales information, you would likely collect data concerning all of the following EXCEPT
Recent sales
Copies of home inspection reports
Listings of comparables
Options to purchase
Copies of home inspection reports
37
"A type of market area characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural” is the definition of
District
Census tract
Central business district
Economic area
District
38
When discussing verification, HUD says that __________ by itself, is not considered a verification source.
MLS
Public records
The buyer
The seller
MLS
39
"The process by which a value indication is derived in the sales comparison approach. Comparative analysis may employ quantitative or qualitative techniques, either separately or in combination".
Comparative analysis
40
analysis is based on numbers, and results in either dollar or percentage amounts.
Quantitative
41
analysis is used for elements that cannot be given a numerical value.
Qualitative
42
Qualitative analysis is used for elements that
Defy description
Are too far apart
Can’t be ranked
Cannot be given a numerical value
Cannot be given a numerical value
43
The process by which a value indication is derived in the Sales Comparison Approach is called
Comparative analysis
Quantitative analysis
Qualitative analysis
Highest and best use analysis
Comparative analysis
44
Comparative analysis may employ quantitative analysis and qualitative analysis
Separately only
Together only
Separately or together
Only in the appraisal of non-residential properties
Separately or together
45
"A quantitative technique used to identify and measure adjustments to the sale prices or rents of comparable properties; to apply this technique, sales or rental data on nearly identical properties is analyzed to isolate and estimate a single characteristic's effect on value or rent. Often referred to as paired sales analysis."
Paired Data Analysis
46
"Quantitative techniques used to identify and measure adjustments to the sale prices of comparable properties; a variant of statistical analysis in which an appraiser interprets graphically displayed data visually or through curve fit analysis. Graphs can also be used to support and illustrate market trends, analyze effects, and assist in interpretation of market influences."
Graphic Analysis
47
"A quantitative technique used to identify and measure trends in the sale prices of comparable properties; useful when sales data on highly comparable properties is lacking, but a broad database on properties with less similar characteristics is available. Market sensitivity is investigated by testing various factors that influence sale prices."
Trend Analysis
48
"A quantitative adjustment technique in the sales comparison approach; adjustments are based on cost indicators such as depreciated building cost, cost to cure, or permit fees."
Cost Analysis
49
A quantitative technique used to identify and measure trends in the sale prices of comparable properties; useful when sales data on highly comparable properties is lacking, but a broad database on properties with less similar characteristics is available. Market sensitivity is investigated by testing various factors that influence sale prices" is the definition of ___________ analysis.
Ranking
Cost
Graphic
Trend
Trend
50
"The process of accounting for differences (such as between comparable properties and the subject property) that are not quantified; may be combined with quantitative analysis."
Qualitative Analysis
51
"A qualitative technique for analyzing comparable sales; used to determine whether the characteristics of a comparable property are inferior, superior, or equal to those of the subject property."
Relative Comparison Analysis
52
"An ordinal technique for analyzing data, commonly used in the analysis of comparable sales; a variant of relative comparison analysis in which comparable sales are arrayed in descending or ascending order of desirability and each is analyzed to determine its comparability to the subject property."
Ranking Analysis
53
The process of accounting for differences (such as between comparable properties and the subject property) that are not quantified; may be combined with quantitative analysis" is the definition of ____________ analysis
Economic
Relative Comparison
Graphic
Qualitative
Qualitative
54
The procedure in which we employ just plusses and minuses in sales comparison is called ______________ analysis.
Gross rent multiplier
Graphic
Relative comparison
Paired Data
Relative comparison
55
Which of the following is NOT a form of qualitative analysis?
Ranking analysis
Graphic Analysis
Relative Comparison Analysis
Interviews
Graphic Analysis
56
Comparable A sells for $240,000 and contains 2,300 SF. Comparable B is similar in all aspects, except it contains 2,100 SF, and it sells for $232,000. If our subject property contains 2,200 square feet and Comparable 1 has 2,100 square feet, it would warrant an adjustment of
$3,000
$4,000
$6,000
No adjustment
$240,000 - $232,000 = $8,000. 2,300 - 2,100 = 200 SF. $8,000 ÷ 200 SF = $40 per SF. Subject 2,200 SF - 2,100 SF - 100 SF. 100 SF X $40 - $4,000.
57
"The order in which quantitative adjustments are applied to the sale prices of comparable properties."
Sequence of adjustments
58
"Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat."
Fee Simple Estate
59
"Divided or undivided rights in real estate that represent less than the whole".
Partial Interest
60
In traditional appraisal theory, the first step in the adjustment sequence is an adjustment for
Market conditions
Real property rights appraised
Sales or financing concessions
Physical characteristics
Real property rights appraised
61
"Rights of use, occupancy, and control, limited to the lifetime of a designated party, sometimes referred to as the life tenant."
Life Estate
62
"A freehold (ownership interest) where the possessory interest has been granted to another party by creation of a contractual landlord-tenant relationship (i.e., a lease)."
Leased Fee Interest
63
"The tenant’s possessory interest created by a lease."
Leasehold Interest
64
"The right to use another’s land for a stated purpose."
easement
65
"An easement that benefits a legal person or entity (individual, corporation, partnership, LLC, government entity, etc.) and not a particular tract of land; an easement having a servient estate but no dominant estate."
Easements in Gross
66
"An easement having both dominant and servient estates. The easement interest passes with title to the dominant estate and continues to burden the servient estate. An easement appurtenant contrasts with an easement in gross, which has a servient estate but no dominant estate."
Easement Appurtenant
67
"The right to drain surface water from one owner's land over the land of one or more adjacent owners".
Drainage Easement, or Drainage Right of Way
68
"The right to undisturbed use and control of designated air space above a specific land area within stated elevations. Such rights may be acquired to construct a building above the land or building of another or to protect the light and air of an existing or proposed structure on an adjoining lot".
Air Rights
69
When appraising a 4-unit property and at least one unit is leased, the property rights would be
Fee simple absolute
Leasehold estate
Leased fee estate
Life estate
Leased fee estate
70
"Trespassing on the domain of another".
encroachment
71
"A form of ownership in which each owner possesses the exclusive right to use and occupy an allotted unit plus an undivided interest in common areas."
condominium
72
"A form of ownership in which each owner of stock in a cooperative apartment building or housing corporation receives a proprietary lease on a specific apartment and is obligated to pay a monthly maintenance charge that represents the proportionate share of operating expenses and debt service on the underlying mortgage, which is paid by the corporation. This proportionate share is based on the proportion of the total stock owned".
Cooperative Ownership
73
"A type of building development designed as a grouping of complementary land uses, such as housing, schools, recreation, retail, office, and industrial parks, contained within a single master development."
Planned Unit Development (PUD)
74
A form of ownership in which each owner possesses the exclusive right to use and occupy an allotted unit plus an undivided interest in common areas” is the definition of a
Condominium
Cooperative
Life estate
REIT
Condominium
75
he most desirable form of timesharing is called ___________ timesharing.
Non fee
Fee
Title
Warranty
Non fee
76
"An estate in real estate held by one owner".
Tenancy in Severalty
77
"The holding of property by any form of title".
Tenancy
78
Tenancy in Common
Joint Tenancy
Tenancy by the Entirety
Concurrent ownership
79
"An estate held by two or more persons, each of whom has an undivided interest".
Tenancy in Common
80
"Joint ownership by two or more persons with the right of survivorship".
Joint Tenancy
81
"An estate held by a husband and wife in which neither has a disposable interest in the property during the lifetime of the other, except through joint action".
Tenancy by the Entirety
82
"A legal vehicle for partial ownership interests in real property in which independently owned properties are conveyed to a trustee; may be used to effect a profitable assemblage or in some cases to facilitate the assigning of property as collateral for a loan".
Land Trust
83
"In law, an organization that acts as a single legal entity in performing certain activities, usually business for profit; also includes charitable, educational, and religious organizations."
Corporation
84
"A private or public partnership that pools funds for the acquisition and development of real estate projects or other business ventures".
syndication
85
Which statement is TRUE about syndications?
They are private partnerships only.
They are public partnerships only.
They can be either a private or public partnership.
They must be corporations
They can be either a private or public partnership.
86
Which ownership includes a right of survivorship?
Joint Tenancy only
Tenancy in Common only
Tenancy in Common and Joint Tenancy
Joint Tenancy and Tenancy by the Entirety
Joint Tenancy and Tenancy by the Entirety
87
A limited partnership has
Limited partners only
General partners only
Both general and limited partners
Only one general partner
Both general and limited partners
88
An organization that acts as a single legal entity in performing certain activities, usually business for profit; also includes charitable, educational, and religious organizations” is the definition of
Corporation
Cooperative
Syndicate
Partnership
Corporation
89
A form of ownership in which each owner of stock in a cooperative apartment building or housing corporation receives a proprietary lease on a specific apartment and is obligated to pay a monthly maintenance charge that represents the proportionate share of operating expenses and debt service on the underlying mortgage, which is paid by the corporation” is the definition of
Cooperative
Condominium
PUD
Timeshare
Cooperative
90
An estate held by two or more persons, each of whom has an undivided interest” is the definition of
Joint tenancy
Tenancy in severalty
Tenancy by the entirety
Tenancy in common
Tenancy in common
91
A business arrangement in which two or more persons jointly own a business and share in its profits and losses” is the definition of
General partnership
Corporation
Limited partnership
Partnership
Partnership
92
A tenancy in severalty involves ____________ owner(s).
Only one
More than one
At least two
Corporate
Only one
93
"A pledge of a described property interest as collateral or security for the repayment of a loan under certain terms and conditions"
mortgage
94
"Mortgages that are neither insured nor guaranteed by an agency of the government, although they may be privately insured."
Conventional mortgages
95
"The process of retiring a debt or recovering a capital investment, typically through scheduled, systematic repayment of the principal."
Amortization
96
"A debt secured by real estate in which mortgage payments are matched to projected increases in the borrower’s income. The periodic payments start out low and gradually increase."
Graduated payment mortgage:
97
"A percentage of the loan amount that a lender charges a borrower for making a loan; may represent a payment for services rendered in issuing a loan or additional interest to the lender payable in advance; also called points"
Discount points
98
"A market created by government and private agencies for the purchase and sale of existing mortgages; provides greater liquidity for mortgages. Fannie Mae, Freddie Mac, and Ginnie Mae are the principal operators in the secondary mortgage market."
secondary mortgage market
99
"A lump-sum payment to the lender that reduces the interest payments of the borrower. The cost of the buydown is usually reflected in the price paid and can be expressed as a percentage of principal."
buydown
100
Mortgages that are either insured by the FHA or guaranteed by the VA:
Are treated the same as any other type of financing during an appraisal
Tend to offer favorable terms
Are designed for people requiring a second mortgage
Do not require appraisals
Tend to offer favorable terms
101
Cash equivalency adjustments are typically made when
A property was purchased for all cash
A property needed repairs at the time of sale
Steep inflation has impacted property values
A transaction involved non-market financing
A transaction involved non-market financing
102
With a land contract, title passes when the seller delivers the deed _________.
At the closing table
At the signing of the contract
When 50% is paid
When the total price is paid
When the total price is paid
103
A cash equivalency adjustment is required when the loan is:
FHA
VA
Seller financed
All of the above
Seller financed
104
Another name for a land contract is a(n)
Deed of trust
Leasehold contract
Installment sale contract
Wrap-around contract
Installment sale contract
105
What happens when the borrower defaults on a VA mortgage and causes a loss to the originating lender?
A perpetual lien is filed against the borrower to recover the loss
The lender writes off the loss against their profits
The VA reimburses the lender for the loss
FHA insurance kicks in and reimburses the lender
The VA reimburses the lender for the loss
106
An element of comparison in the sales comparison approach; comparable properties can be adjusted for differences in the points in the real estate cycle at which the transactions occur. Sometimes called a time adjustment because the differences in dates of sale are often compared, although that usage can be misleading."
Market Conditions
107
Your research of a comparable sale reveals that the purchase price was $200,000, but the purchaser realized the property needed extensive repairs to the mechanical systems. The estimated cost to cure the problems was $15,000 but the actual costs turned out to be $20,000. What should you do?
Adjust the property sale price by $20,000
Adjust the property sale price by $15,000
Make no adjustment
Adjust the property sale price by $5,000, the amount of the excess cost
Adjust the property sale price by $15,000
108
Long-term market cycles are:
Based on the prevailing interest rate
Always rapidly fluctuating and notoriously unstable
Caused by national or international conditions
Of little interest to an appraiser
Caused by national or international conditions
109
The life cycle of a market area typically includes the stages of growth, _____________, decline and _______________.
stability, destruction
plateau, stagnation
urbanization, rehabilitation
stability, revitalization
stability, revitalization
110
Changes in a market cycle may be cyclical, one-time-only, ___________ and ____________.
Recurring, exponential
Repeating, inverse
Seasonal, exponential
Seasonal, geometric
Seasonal, exponential
111
You are in a very hot real estate market with values going up monthly by 2%, and lenders are taking months to process transactions, creating extended closing times. As an appraiser, you should:
Make market conditions adjustments from the date of closing
Make no adjustments for market conditions
Ask your client which date they prefer, and do what is most convenient for them
Adjust the comparables from their contract date of sale to the effective date of the appraisal
Adjust the comparables from their contract date of sale to the effective date of the appraisal
112
A property sold in November for $312,500. It sold again 9 months later for $354,800. What was its average monthly rate of appreciation?
1. 15%
1. 18%
1. 50%
1. 78%
1.50%
113
The real estate market tends to be:
Lagging at the end of short-term economic cycles
An early responder to short-term economic cycles
Sluggish to recover from short-term economic cycles
Unrelated to short-term economic cycles
An early responder to short-term economic cycles
114
Your research of a comparable sale reveals that the purchase price was $200,000, but the purchaser realized the property needed extensive repairs to the mechanical systems. The estimated cost to cure the problems was $15,000 but the actual costs turned out to be $20,000. What should you do?
Adjust the property sale price by $20,000
Adjust the property sale price by $15,000
Make no adjustment
Adjust the property sale price by $5,000, the amount of the excess cost
Adjust the property sale price by $15,000
115
Your subject is located in an area where property values have been declining consistently at .5% a month for the past ten months. You have located a comparable that is practically identical to your subject. It sold 8 months ago for $200,000. How much should you adjust the price?
-$4,000
+$8,000
-$8,000
-$8,000
116
Two-bedroom condos in the city sold for a median price of $180,440 nine months ago and that the median price of those homes for the current month is $206,390. What is the indicated average increase per month?
8%
1. 1%
1. 4%
1. 6%
1.6%
117
A home sold five months ago for $232,000. Since then, property values have appreciated by 1% per month. (Use simple interest.) The appraiser estimates that its inferior location depreciates the total value by 10%. What is its estimated value?
$214,560
$216,400
$218,680
$219,240
$219,240
118
You are in a very hot real estate market with values going up monthly by 2%, and lenders are taking months to process transactions, creating extended closing times. As an appraiser, you should
Make market conditions adjustments from the date of closing
Make no market conditions adjustments
Ask your client which date they prefer, and do what is most convenient for them
Adjust the comparables from their contract date of sale to the effective date of the appraisal
Adjust the comparables from their contract date of sale to the effective date of the appraisal
119
The life cycle of a market area typically includes the stages of growth, _____________, decline and _______________.
Stagnation, destruction
Recession, revitalization
Urbanization, rehabilitation
Stability, revitalization
Stability, revitalization
120
Which of the following would NOT be classified as a long term trend for market cycles?
Population trends
Interest rates
Income levels
Migration patterns
Interest rates
121
Which of the following is LEAST LIKELY to be a factor that can help you analyze changes in local market conditions?
Foreclosure rates in the area
Amount of new construction available for sale
Foreclosure rates nationally
Instances of seller financing
Foreclosure rates nationally
122
Which of the following would NOT be classified as a short term trend for market cycles?
Availability of financing
Interest rates
Income levels
Loan to value ratios
Income levels
123
he concept of real estate value being linked to location comes to us from the economist
William Kinnard
Alfred Marshall
Adam Smith
Irving Fisher
Alfred Marshall
124
A group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises” is the definition of
Neighborhood
Market area
District
Marketing area
Neighborhood
125
A district is an area characterized by ____________ land use.
Contradictory
Varied
Incongruous
Homogeneous
Homogeneous
126
The definition of neighborhood has changed from a grouping of __________ to a grouping of ____________ people, buildings and uses.
Diverse, similar
Homogenous, congruous
Complementary, supplementary
Congruous, identical
Homogenous, congruous
127
The area associated with a subject property that contains its direct competition” is the definition of
Neighborhood
District
Market area
All of these
Market area
128
What is one of the best ways to determine neighborhood boundaries?
Driving around the area
Checking Congressional voting districts
Drawing lines by zip code
Asking the chamber of commerce
Driving around the area
129
Which is the most inclusive term?
Neighborhood
District
Market area
They all mean exactly the same thing
Market area
130
The area in which alternative, similar properties effectively compete with the subject property in the minds of probable, potential purchasers and users” is the definition of
Neighborhood
District
Market area
All of the above
Market area
131
The period of time over which a structure may reasonably be expected to perform the function for which it was designed” is the definition of ______________ life.
Physical
Useful
Economic
Effective
Useful
132
Which of the following property types should NOT be reported on the URAR?
Single unit
Single unit with accessory apartment
Unit in a PUD
Unit in a condominium
Unit in a condominium
133
Which of these is one of the written real property appraisal report options identified in USPAP?
Restricted Use Report
Appraisal Report
Limited Report
Letter Opinion of Value
Appraisal Report
134
Fannie Mae's Market Conditions Addendum is also known as Form
1004MC
1004D
1025
2090
1004MC
135
Fannie Mae expects an explanation when the net adjustments exceed ____% and the gross adjustments exceed _____%.
10, 15
15, 25
5, 30
There is no set number
There is no set number
136
Fannie Mae requires a sales history of the subject property for ____ years and the comparable properties for ____ years.
1, 1
2, 1
3, 1
3, 3
3, 1
137
The most common methodology used to value residential investment properties is the
Potential gross income multiplier
Overall capitalization rate
Effective gross income multiplier
Gross rent multiplier
Gross rent multiplier
138
"A tangible or intangible benefit of real property that enhances its attractiveness or increases the satisfaction of the user. `
Amenity
139
"The interests, benefits, and rights inherent in the ownership of real estate."
Real Property
140
"An identified parcel or tract of land, including improvements, if any.
Real Estate
141
"The tenant’s possessory interest created by a lease."
Leasehold Interest
142
"A freehold (ownership interest) where the possessory interest has been granted to another party by creation of a contractual landlord-tenant relationship (i.e., a lease)."
Leased Fee Interest
143
The HP 12C has ______ storage registers.
5
10
15
20
20
144
You take a 240 day note on September 14, 2012. When will it be due?
April 15, 2013
May 12, 2013
May 14, 2013
May 16, 2013
May 12, 2013
145
"Conversion of benefits received in the future (e.g., periodic incomes, cash flows, reversion) to present value."
discounting
146
In the Six Functions of a Dollar table, column ___ is also called the annuity column.
1
2
4
5
2
147
In the Six Functions of a Dollar table, column ___ is also called the Discount Factor column.
1
2
3
4
4
148
In the Six Functions of a Dollar table, which columns solve for present values?
1, 2, 5
2, 4, 6
1, 2, 3
4, 5, 6
4, 5, 6
149
Compounding and discounting are ___________.
Opposites
Equal
Complementary
Not related
Opposites
150
"The procedure in which a discount rate is applied to a set of projected income streams and a reversion. The analyst specifies the quantity, variability, timing, and duration of the income streams and the quantity and timing of the reversion, and discounts each to its present value at a specified yield rate."
Discounted Cash Flow Analysis
151
"The total income attributable to real property at full occupancy before vacancy and operating expenses are deducted."
Potential Gross Income (PGI)
152
"The anticipated income from all operations of the real property after an allowance is made for vacancy and collection losses and an addition is made for any other income."
Effective Gross Income (EGI)
153
Fannie Mae form 1007 is titled
Uniform Residential Appraisal Report
Market Conditions Addendum
Update and/or Completion Report
Single Family Comparable Rent Schedule
Single Family Comparable Rent Schedule
154
When using the Fannie Mae 1007 form, an appraiser is expected to ________ any utilities that may be included in the comparable property rental amounts.
subtract
add in
ignore
verify with the utility company
subtract
155
Lenders use _____________ income when underwriting loans for 2 to 4 unit residential properties.
Operating
Potential Gross
Effective Gross
Taxable
Operating
156
When using Form 216 where at least one of the units is owner occupied
Estimate and use market rent for the owner-occupied space
Do not use any rent for the owner-occupied space
Make an adjustment for the owner-occupied space
Fannie Mae allows appraisers to use their own judgment
Do not use any rent for the owner-occupied space
157
What is the form number for the Fannie Mae SRIPAR form?
1120
1025
1125
1020
1025
158
Which of these unit indicators was a new addition to the March 2005 version of the SRIPAR?
Sale price per square foot of GBA
Sale price per unit
Sale price per room
Sale price per bedroom
Sale price per bedroom
159
Which of the following indicators was on the old SRIPAR form?
Sale price per square foot of GBA
Sale price per unit
Sale price per room
All of the above were on the old form
All of the above were on the old form
160
Standards Rule 1-1(c) of USPAP says an appraiser must “not render appraisal services in __________________ manner...”
An illegal
A careless or negligent
An inappropriate
Unsupported
A careless or negligent
161
Reconciliation takes place
At the end of the report only
Throughout the report
In the Sales comparison approach only
In the Income capitalization approach only
Throughout the report
162
STANDARD 1 of USPAP states: "In developing a real property appraisal, an appraiser must identify the problem to be solved, determine the scope of work necessary to solve the problem, and correctly complete research and analysis necessary to produce _________________."
A Certified appraisal
An appropriate result
Credible results
A credible appraisal
A credible appraisal
163
"The criteria that enable an appraiser to form a meaningful, defensible conclusion about the final value opinion. Value indications are tested for the appropriateness of the approaches and adjustments applied, the accuracy of the data, and the quantity of evidence analyzed" is the definition of
Statistical analysis
Micro analysis
Reconciliation criteria
Reconciled data
Reconciliation criteria
164
Which is the more recent term?
Neighborhood
District
Market
Market area
Market area
165
“A type of market area characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural” is the definition of
District
Census tract
Market area
Community
District
166
District
“A type of market area characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural” is the definition of
167
Prior to accepting an assignment an appraiser must have the _____________ to complete the assignment competently.
Knowledge only
Experience only
Motivation or experience
Knowledge and experience
Knowledge and experience
