Basic Appraisal Principles and Procedures

Question 1

The measurements of a lot, in feet, appear in the drawing below. What is the area of this lot in acres?

Answer 1

154 x 136 = 20,944 Sq. Ft.
136 x 57 + 2 X 2 = 7,752 Sq. Ft. 20,944 + 7,752 = 28,696 Sq. Ft. 28,696 + 43,560 = .66 acre

(or 114 x 136 /2)
Ch 18, page 2

Question 2

Let’s assume that a property is worth $100,000. If it is assessed at $100,000 and the rate per thousand is $5, the taxes would be x.

Answer 2

$500

$100,000 = X
$1,000 = 5%

Question 3

A run-down neighborhood grocery store on a good corner location in a desirable older neighborhood recently sold for $400,000.
The reproduction cost of the improvements today would be $250,000 and the total depreciation is estimated to be 80%.
By extraction, what is the land value?

Answer 3

$350,000

$250,000 x 20% = $50,000

$400,000 minus $50,000 = $350,000

Question 4

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

Answer 4

One foot. Roof Slope. A 4:12 roof pitch goes up 4 inches for every 12 inches. So if it goes 3 feet sideways (3 x 12 inches) it will go up 12 inches (3 x 4 inches) which is equivalent to one foot.

Question 5

A two-unit property can be purchased for $400,000. Typical financing terms would require a 20% down payment, with a fully-amortized mortgage at 5.5% for a term of 30 years, with monthly payments. What is the amount of the monthly payment?

Answer 5

CLEAR FIN
30 g n
5.5 g i
320000 CHS PV
PMT
1816.92
The monthly payment for a $320,000 loan at 5.5% interest would be $1,816.92.