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Basic Appraisal Procedures > Chapter Review Quiz > Flashcards

Chapter Review Quiz Flashcards

1
Q

Multiple listing services can be utilized for gathering _______________.

general data only
both general and specific data
specific data only
all data that is needed to produce a credible appraisal

A

both general and specific data

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2
Q

The basic principle underlying the cost approach is the principle of ____________.

substitution
increasing and decreasing returns
anticipation
none of the above

A

Substitution

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3
Q

You calculate the following gross rent multipliers for comparable properties: 121.2, 105.3, 111.2, 150.1, 108.3, 105.3, 109.8, 108.8. What is the mode of the GRMs?

105.3
109.3
109.8
There is no mode

A

105.3

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4
Q

“Details about the property being appraised, comparable sale and rental properties, and relevant local market characteristics” is the definition of

specialized data
specific data
general data
neighborhood data

A

specific data

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5
Q

All of the following could be sources of general data EXCEPT

utility companies
school districts
zoning ordinances
departments of transportation

A

Zoning Ordinances

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6
Q

A building was constructed in July 2000 for $754,200. The cost index at that time was 133.6. The current cost index is 201.8. What is the indicated cost new of the building today?

$1,013,861
$1,098,253
$1,107,835
$1,138,842

A

$1,138,842

new index divided by old index

201.8/133.6 = 1.510

754,200 x 1.15 = 1,138,842

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7
Q 
You examine a construction contract to build a 2,448 square foot house and the total cost is $197,450. What was the cost per square foot?
$78.42
$80.66
$84.55
$86.14
A

$80.66

197,450 / 2448

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8
Q

If a property is assessed at $134,000 and the rate per thousand is $9.55, how much are total property taxes?

$919.90
$1,186.20
$1,279.70
$1,610.55

A

$1,279.70

134,000 x 0.00955

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9
Q 
An appraiser must not allow the intended use of an assignment or a client’s objectives to cause the assignment results to be \_\_\_\_\_\_\_\_\_\_.
reliable
credible
biased
overvalued
A

biased

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10
Q 
A one­-and-­a-­half-­story house is commonly known as a
cape cod
ranch
split-level
split-entry
A

cape-cod

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11
Q 
“Data that relates to the four forces that affect real property values—social, economic, governmental, and environmental forces” is the definition of
census data
specialized data
generic data
general data
A

general data

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12
Q 
If an appraiser uses a cost manual to estimate cost new for a property, the result is
replacement cost
reproduction cost
depreciated cost
a guesstimate
A

replacement cost

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13
Q

A single unit residence sold for $126,000. It was rented for $1,100 per month but the market rent was $1,200. What is the GRM indicated by this sale?

  1. 1
  2. 6
  3. 0
  4. 5
A

105.0

126,000 / 1200

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14
Q

The ground rent capitalization method should only be used when appraising a property that is
income-producing or suitable for income production
subject to a partial ownership interest
suitable for a single-family homesite
not suitable for construction of a new building

A

Income-producing or suitable for income production

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15
Q

The first step in the valuation process is

list the data needed
estimate land value
define the problem
determine the scope of work

A

define the problem

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16
Q 
The most complex method of site valuation is the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ method.
allocation
cost
sales comparison
subdivision development
A

subdivision development

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17
Q 
Which of the stages in the life cycle of a market area does not always occur?
growth
stability
decline
revitalization
A

revitalization

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18
Q 
The cost approach formula states that reproduction or replacement cost new \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ equals property value.
plus depreciation, minus land value
minus depreciation, plus indexed costs
plus depreciation, plus site value
minus depreciation, plus site value
A

minus depreciation, plus site value

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19
Q

A short-lived item is a building component with an ___________ life that is shorter than the ___________ life of the entire structure.
economic life, long-lived
expected remaining economic, remaining economic
useful, anticipated
anticipated, economic life

A

expected remaining economic, remaining economic

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20
Q 
In a market value appraisal, every comparable sale should have been sold in an \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ transaction, with no undue \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
arm’s wide, duress
equalized, stress
arm’s length, duress
real-life, emotion
A

arm’s length, duress

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21
Q 
An entrepreneur is taking on a development project, and by his calculations, he expects to receive a 25% return on his investment in the project. This 25% figure represents
risk factor
net operating income
entrepreneurial incentive
entrepreneurial risk
A

entrepreneurial incentive

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22
Q 
Which was the earliest form of electrical wiring?
aluminum
Romex
knob and tube
BX
A

knob and tube

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23
Q

A property sold for $2,350,000. The net operating income was verified as $294,640. The capitalization rate indicated by sale is ____%.

  1. 4
  2. 5
  3. 9
  4. 2
A

12.5

Capitalization rate: 294,60 / 2,350,000

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24
Q 
An estimate of remaining economic life is required by
Fannie Mac
Freddie Mac
VA
all of the above
A

VA

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25
Q 
"An amount paid for the use of land, improvements or a capital good" is the definition of
rent
contract price
sale price
market rent
A

rent

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26
Q 
“A method of estimating land value in which the depreciated cost of the improvements on an improved property is calculated and deducted from the total sale price to arrive at an estimated sale price for the land” is the definition of the \_\_\_\_\_\_\_\_\_\_\_ method of site valuation.
allocation
land residual
subdivision development
extraction
A

extraction

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27
Q

GRMs are derived by dividing the __________ by the property’s ___________ at the time of sale.

market rent, contract price
sale price, gross monthly unfurnished market rent
listing price, gross monthly market rent
sale price, gross annual unfurnished market rent

A

sale price, gross monthly unfurnished market rent

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28
Q 
When measuring a condominium you should calculate \_\_\_\_ using \_\_\_\_\_\_\_ measurements.
GLA, exterior
GBA, interior
GLA, interior
GBA, exterior
A

GLA, Interior

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29
Q 
“The estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvements, using modern materials and current standards, design, and layout” is the definition of\_\_\_\_\_\_\_\_\_\_ cost.
replication
reproducible
replacement
reproduction
A

Replacement

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30
Q 
J-bolts are used to anchor the \_\_\_\_\_\_\_\_\_ to the \_\_\_\_\_\_\_\_\_\_.
joists, foundation
sill plate, foundation
joists, girders
foundation, footings
A

sill plate, foundation

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31
Q 
Parging is used on which kind of foundation wall?
concrete block
vinyl
wood
pier
A

concrete block

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32
Q 
Construction materials and workers' wages are examples of \_\_\_\_\_\_\_\_\_\_costs.
direct
indirect
reproduction
replacement
A

direct

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33
Q 
An appraisal with an effective date at some point in the future is called a(n) \_\_\_\_\_\_\_\_\_\_\_ appraisal.
retrospective
speculative
prospective
effective
A

prospective

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34
Q 
The Fannie Mae Single Family Comparable Rent Schedule is designated as Form
1004
1007
1020
1025
A

1007

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35
Q

EIFS is also known as

strawbale
Hardiplank
sandwich panels
synthetic stucco

A

synthetic stucco

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36
Q 
Modular homes are constructed to meet \_\_\_\_\_\_\_\_\_\_ code requirements.
HUD
State and Local
ANSI
United Nations
A

state and local

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37
Q 
Architectural and engineering fees are examples of \_\_\_\_\_\_\_\_\_\_\_\_\_ costs.
total
indirect
hard
direct
A

indirect

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38
Q 
The "summation approach" is another name for the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ approach.
market
cost
sales comparison
income capitalization
A

cost

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39
Q 
It is common in appraisal reports to include a map that shows the location of the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
subject property only
subject property and support facilities
subject property and comparable sales
subject property and local schools
A

subject property and comparable sales

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40
Q 
Condemnation occurs when a municipality exercises
eminent domain
police power
escheat
aggregation
A

eminent domain

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41
Q

Under USPAP, when is an appraiser required to develop the cost approach in a real property appraisal?
whenever the client might find it helpful
when it is necessary for credible results
in all assignments
this approach is never required

A

when it is necessary for credible results

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42
Q

“Expenditures or allowances for items other than labor and materials that are necessary for construction, but are not typically part of the construction contract” is the definition of

direct costs
entrepreneurial incentive
indirect costs
entrepreneurial profit

A

indirect costs

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43
Q

The following statement is a definition for what? “Improved land or a lot in a finished state so that it is ready to be used for a specific purpose”.

Improved land
Leased land
Site improvements
Site

A

site

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44
Q 
The method that estimates land value based on a percentage of the total property value is the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ method.
sales comparison
allocation
abstraction
land residual
A

allocation

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45
Q 
The most commonly used method for valuing sites is the \_\_\_\_\_\_\_\_\_\_\_\_ method.
allocation
cost
sales comparison
land residual
A

sales comaprison

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46
Q 
“A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis” is the definition of
hypothetical condition
extraordinary assumption
ordinary assumption
contradiction
A

hypothetical condition

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47
Q 
Building permits and worker's compensation are examples of \_\_\_\_\_\_\_\_\_\_costs.
direct
indirect
soft
replacement
A

direct

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48
Q 
Flood maps are prepared by
FEMA
HUD
Fannie Mae
NAHB
A

FEMA

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49
Q 
Soil maps produced by the Natural Resources Conservation Service are based on
percolation tests
mining maps
aerial maps
flood maps
A

Aerial maps

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50
Q

Fannie Mae says the appraiser must base his or her analysis and any adjustments to comparable sales on

published tables of adjustments
standard formulas
personal opinions
market data

A

market data

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51
Q 
“The amount by which contract rent exceeds market rent at the time of the appraisal....” is the definition of \_\_\_\_\_\_\_\_\_\_ rent.
excess
deficit
effective
economic
A

excess

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52
Q 
The most common heating systems in residential construction today are
hot water
heat pumps
forced warm air
electric radiant
A

forced warm air

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53
Q 
Developers often value land on a basis of price per
cubic yard
front foot
square foot
buildable unit
A

buildable unit

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54
Q

Fannie Mae requires a single­-unit residential appraisal report to include photographs of
the subject property only
the subject property and the comparable sales
the comparable sales only
the subject property and nearby schools and employment centers

A

the subject property and the comparable sales

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55
Q

Which would NOT be an appropriate legal description of a subject property?

postal address
metes and bounds description
rectangular survey description
lot and block description

A

postal adress

56
Q

What are the three general types of depreciation?

physical, short-lived, and long-lived
curable, incurable and breakdown
physical, functional, and external
functional, curable, and incurable

A

physical, functional, and external

57
Q

The identification of relevant characteristics is a judgment made by

the client
the intended user
Fannie Mae and Freddie Mac
the appraiser

A

the appraiser

58
Q

When appraising a duplex, an appraiser should use __________ area.

buildable
gross building
gross living
net leasable

A

gross building

59
Q

A property has a cost new of $350,000. It has an effective age of 20 years and a total expected economic life of 65 years. There are curable items totaling $45,000. If they are cured, it will reduce the effective age to 15 years. What is the value of the improvements on a modified age-­life basis, before including the site value?

$104,537
$186,635
$227,024
$234,545

A

$234,545

350,000 - 45,000 = 305,000

15/65= 0.2307

(305,000 x 0.2307)= 70,455

305,000 - 70,455 = 234,545

60
Q

Each written appraisal report must contain the date
of the report and the effective date of the appraisal
of the inspection only
of the report only
that the client requests

A

of the report and the effective date of the appraisal

61
Q

“An element of comparison in the sales comparison approach; comparable properties can be adjusted for differences in the motivations of either the buyer or a seller in a transaction” is the definition of

market conditions
conditions of sale
financing
cash equivalency

A

conditions of sale

62
Q

The subject is a 15 year old duplex that would cost $240,000 to build new today. It is in good condition and you estimate the effective age to be 10 years. Your estimate of total economic life is 50 years. Its land value is $60,000. What is its value by the cost approach?

A

252,000

10 ÷ 50 = .20 or 20% depreciation.
$240,000 X .20 = $48,000 depreciation.
$240,000 - $48,000 = $192,000.
$192,000 + $60,000 - $252,000

63
Q 
The cost estimating method most commonly used by residential appraisers is the \_\_\_\_\_\_\_\_\_\_\_\_ method.
comparative-unit
quantity survey
unit-in-place
index
A

comparative unit

64
Q 
Appraisers are cautioned to identify the exact \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ of market value, and its \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, applicable in each appraisal completed for the purpose of market value.
type, definition
definition, authority
type, scope
definition, age
A

definition, authority

65
Q 
“The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease” is the definition of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
leased fee interest
leasehold interest
fee simple
partial interest
A

leasehold interest

66
Q 
In the age-life method of estimating depreciation, the \_\_\_\_\_\_\_\_\_\_\_ age is divided by the \_\_\_\_\_\_\_\_\_\_\_\_ life.
actual age, total physical life
effective age, remaining economic life
effective age, total economic life
actual age, remaining economic life
A

effective age, total economic life

67
Q

The cost approach formula states that ______________, minus depreciation, _______________, equals property value.
cost new, minus land value
replacement cost, minus external obsolescence
depreciated cost, plus site value
cost new, plus site value

A

cost new, plus site value

68
Q

Condos in your market area sold for a median price of $195,320 twelve months ago and the median price of condos for the current month is $219,540. What is the percentage of change in market conditions?

  1. 0%
  2. 2%
  3. 5%
  4. 4%
A

12.4%

$219,540 ÷ $195,320 = 1.124 or an increase of 12.4%.

69
Q 
Price per room is a common unit of comparison when appraising
2-4 unit residential properties
vacant lots
one unit residences
retail stores
A

2-4 unit residential properties

70
Q 
Functional obsolescence could be caused by all of the following EXCEPT
superadequacies
layout problems
deferred maintenance
outmoded items
A

deferred maintenance

71
Q

Market condition adjustments should always be calculated from the time of the ________ to the ___________.
closing, effective date of the appraisal
contract, effective date of the appraisal
closing, date of the appraisal report
contract, closing date

A

contract, effective date of the appraisal

72
Q

A municipality assesses property at 100% of value. If a property is assessed at $186,000 and the rate per thousand is $6.45, how much are total property taxes?

A

$1,199.70

Assessments and Taxation. 186 (thousands) X $6.45 = $1,199.70.

73
Q

A house cost $295,000 to build new. It is 5 years old and has sustained a total of 8% depreciation. It sits on a lot worth $45,000. What is its value by the cost approach?

A

$316,400

Cost Approach Formula.
$295,000 X .92 = $271,400.
$271,400 + $45,000 = $316,400.

OR

295,000 x .08 = 23,600
295,000 - 23,600 + 45,000 = 316,400

74
Q

A house is rented for $1,050 per month, but lacks air conditioning. Comparable houses with air conditioning, rent for $1,100 per month. The appropriate gross rent multiplier is 75. By the capitalized value method, how much is the depreciation attributable to the lack of air conditioning?

A

$3,750

Capitalization of Income Loss.

$1,100 - $1,050 = $50 rent loss. $50 X 75 = $3,750.

75
Q

An old gas station on a good corner location in a desirable older neighborhood recently sold for $375,000. The reproduction cost of the improvements today would be $350,000 and the total depreciation is estimated to be 80%. What is the land value?

A

$305,000

Extraction Method.
$350,000 X .2 = $70,000 (current building value).

$375,000 - $70,000 = $305,000 (land value).

76
Q 
What unit of measurement is typically used for single-family homes?
gross lineal footage
gross building area
gross living area
total leasable area
A

gross living area

77
Q

You calculate the following gross rent multipliers for comparable properties: 121.2, 105.3, 111.2, 150.1, 108.3, 105.3, 109.8, 108.8. What is the range of the GRMs?

A

44.8

78
Q 
Which type of depreciation occurs off the site?
curable
short-lived
physical
external
A

external

79
Q 
Appraisal fees are examples of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ costs.
direct
indirect
unnecessary
replacement
A

indirect

80
Q

You examine a construction contract to build a 2,448 square foot house and the total cost is $197,450. What was the cost per square foot?

A

$80.66

81
Q 
The valuation process is a systematic procedure employed to provide the answer to a(n) \_\_\_\_\_\_\_ question about the value of \_\_\_\_\_\_\_\_\_.
appraiser’s, real property
client’s, real property
appraiser’s, property rights
intended user’s, vacant land
A

client’s, real property

82
Q 
The results of a \_\_\_\_\_\_\_\_\_ test will determine if there is suitable drainage and the size of the drain field that will be required for a septic system.
potability
pH
slope
percolation
A

percolation

83
Q 
Materials that transfer energy quickly are called \_\_\_\_\_\_\_\_\_\_ and those that transfer energy slowly are called \_\_\_\_\_\_\_\_\_\_.
resistors, insulators
conductors, insulators
ventilators, resistors
insulators, ventilators
A

conductors, insulators

84
Q

An 8-unit apartment building has 5 units rented at $850 per month and 3 units rented at $925 per month. What is its gross income?

A

$84,300

5 x 850 x 12 = total 1
3 x 925 x 12 = total 2
total 1 + total 2 = answer

85
Q 
In what type of heating system would you find an expansion tank?
active solar
forced hot air
hot water
passive solar
A

hot water

86
Q 
What is another name for "indirect costs"?
hard costs
soft costs
entrepreneurial incentive
book value
A

soft costs

87
Q 
In the sales comparison approach, we always adjust the \_\_\_\_\_\_\_\_\_; we never adjust the \_\_\_\_\_\_\_\_\_\_\_\_.
subject property, comparable sales
list prices, sale prices
comparable sales, subject property
days-on-market, sales concessions
A

comparable sales, subject property

88
Q

When developing an appraisal, you calculate the following GRMs for comparable properties: 94.3, 90.1, 95.6, 109.2, 84.5, 100.7, 99.9. What is the range of the GRMs?

A

24.7

89
Q 
“The actual rental income specified in a lease” is the definition of \_\_\_\_\_\_\_\_\_\_\_ rent.
deficit
contract
market
lease
A

contract

90
Q 
The SCOPE OF WORK RULE says that in each real property appraisal assignment, the appraiser must \_\_\_\_\_\_\_ the problem to be solved, and determine and perform the scope of work necessary to develop \_\_\_\_\_\_\_\_ assignment results.
identify, useful
identify, credible
describe, verifiable
relate, credible
A

identify, credible

91
Q 
When appraising a duplex, an appraiser should use \_\_\_\_\_\_\_\_\_\_ area.
buildable
gross building
gross living
net leasable
A

gross building

92
Q 
A property contains 3.2 acres and is worth: A. $155,000 as single home site; B. $75,000 per unit as a site for a duplex; or C. $50,000 per acre as a retail site. All uses are physically possible, economically feasible and legally permitted. Which is the highest and best use?
A, single home site
B, duplex site
C, retail site
All are highest and best uses
A

c. retail site

93
Q

A comparable sale of a new house just sold for $640,000. You estimate the value of the site at $120,000 and the cost of the site improvements at $18,000. It has 2,940 square feet of GLA. What is its unit cost?

A

$170.75

640,000 - 120,000 - 18,000 = 502,000

502,000 / 2,940 = 170.75

94
Q 
In the sales comparison approach, sales data on \_\_\_\_\_\_\_\_\_\_ sales should be collected.
one or two
no more than two
exactly three
at least three
A

at least three

95
Q

An appraiser encounters an underground storage tank and there are no signs of leakage or failure. An appraisal could be performed under the presumption that the tank is not leaking and the property is not contaminated. This would be an example of a(n)

hypothetical condition
retrospective appraisal
extraordinary assumption
contradiction

A

extraordinary assumption

96
Q

A building was constructed in July 2000 for $654,200. The cost index at that time was 138.5. The current cost index is 221.8. What is the indicated reproduction cost of the building today?

A

$1,046,720

221.8 / 138.5 = 1.6

654,200 x 1.6 = 1,046,720

97
Q

A building was constructed in July 2000 for $754,200. The cost index at that time was 133.6. The current cost index is 201.8. What is the indicated cost new of the building today?

A

$1,138,842

201.8 / 133.6 = 1.51

754,200 x 1.51 = 1,138,842

98
Q

A property sold for $2,350,000. The net operating income was verified as $294,640. The capitalization rate indicated by sale is ____%.

A

12.5%

294,640 / 2,350,000

99
Q 
The \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ method has good application in valuing land in rural areas and in older, urban areas.
extraction
subdivision development
land residual
ground rent capitalization
A

extraction

100
Q

If a property is assessed at $134,000 and the rate per thousand is $9.55, how much are total property taxes?

A

$1,279.70

134,000 x 0.00955

101
Q 
Early ductless heating systems were called
geothermal systems
heat pumps
gravity systems
active solar systems
A

gravity systems

102
Q 
Building permits and worker's compensation are examples of \_\_\_\_\_\_\_\_\_\_costs.
direct
indirect
soft
replacement
A

direct

103
Q

When developing an appraisal, you calculate the following GRMs for comparable properties: 94.3, 90.1, 95.6, 109.2, 84.5, 100.7, 99.9. What is the mean of the GRMs?

A

96.3

104
Q

Two squares of 180-pound roof shingles would weigh _____ pounds.

A

360

180 x 2 = 360

105
Q 
The most complex method of site valuation is the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ method.
allocation
cost
sales comparison
subdivision development
A

subdivision development

106
Q 
A house has a total cost new of $212,340. It is 12 years old and has an estimated remaining economic life of 38 years. The cost to cure deferred maintenance items is $670. Short lived items Cost is $20,000 and depreciation on the short lived items has been identified totaling $4,850. What is the amount of long-lived depreciation attributable to the building?
$1,489
$23,691
$31,653
$46,000
A

$46,000

12 + 38 = 50 years total economic life. Determine Cost of Long-lived Items by subtracting deferred maintenance and short lived items Cost from total replacement cost: $212,340 - $670 - $20,000 = $191,670. Determine depreciation percentage by diving effective life by total economic life: 12 / (12 + 38 = 50) = 24%. Multiply the Cost of the Long-Lived Items by the depreciation percentage: $191,760 X 24% = $46,000.

107
Q

If a comparable property sells with atypical financing, we may have to make an adjustment for ___________.
market conditions

depreciation
expenditures made immediately after purchase
financing terms

A

financing terms

108
Q

A property has a cost new of $350,000. It has an effective age of 20 years and a total expected economic life of 65 years. There are curable items totaling $45,000. If they are cured, it will reduce the effective age to 15 years. What is the value of the improvements on a modified age-­life basis, before including the site value?

$104,537
$186,635
$227,024
$234,545

A

$234,545

Modified Age-Life Method. $350,000 - $45,000 = $305,000.
15 ÷ 65 = .231 or 23.1%. $305,000 X .231 = $70,455. $305,000 - $70,455 = $234,545.

109
Q 
The most common unit of comparison for land in rural areas is price per \_\_\_\_\_\_\_.
square foot
front foot
acre
lot
A

acre

110
Q 
he intended user of an appraisal is the \_\_\_\_\_\_\_\_\_\_ and any other user, as identified by \_\_\_\_\_\_\_\_\_.
lender, the client
client, law
lender, the appraiser
client, name or type
A

client, name or type

111
Q 
“The process of valuing a universe of properties as of a given date using standard methodology, employing common data, and allowing for statistical testing” is the definition of
assessment rolls
statistical appraisal
universal appraisal
mass appraisal
A

mass appraisal

112
Q 
A property sold for $200,000. There was a $20,000 down payment and the rest was in the form of a 30-year mortgage at 6% interest. The seller paid 3 points at the closing. How much was that?
$540
$3,000
$5,400
$6,000
A

$5,400

Points.
$200,000 - $20,000 = $180,000.

$180,000 X .03 = $5,400.

113
Q 
When describing roofing shingles, a “square” contains \_\_\_\_\_\_\_\_\_\_ square feet.
1
10
50
100
A

100

114
Q 
A property contains 2.4 acres and is worth: A. $155,000 as single home site B. $85,000 per unit as a site for a duplex and C. $60,000 per acre as a retail site. All uses are physically possible, economically feasible and legally permitted. Which is the highest and best use?
A, single home site
B, duplex site
C, retail site
All are highest and best uses
A

duplex site

115
Q 
Extensive research on current construction trends and figures is conducted by
HUD
U.S. Census Bureau
NAHB
local MLS systems
A

NAHB

116
Q 
Keyways are employed in which type of foundation walls?
stone
wood
concrete block
poured concrete
A

poured concrete

117
Q 
Which of the following would NOT be general data?
mortgage rates
unemployment rates
subject property assessment
property tax rates
A

subject property assessment

118
Q 
Which of the following would NOT be a common adjustment made in sales comparison when appraising land?
size
quality
shape
topography
A

quality

119
Q 
Which would NOT be a sub-step in defining the problem?
definition of value
effective date of value
identification of the property rights
highest and best use analysis
A

highest and best use

120
Q 
Today the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ technique of site valuation is used primarily in highest and best use analysis.
investment
land residual
ground rent capitalization
allocation
A

land residual

121
Q 
Segregated cost method is another name for the \_\_\_\_\_\_\_\_\_ method.
square foot
quantity survey
index
unit-in-place
A

unit-in-place

122
Q

The URAR form can be used to report the appraisal of which of the following property types?

one-unit property
one-unit with an accessory unit
unit in a PUD
all of the above

A

all of the above

123
Q

Which site valuation methods should only be utilized when the subject property is income-producing by nature?

land residual and ground rent capitalization
land residual and subdivision development
ground rent capitalization and subdivision development
extraction and allocation

A

land residual and ground rent capitalization

124
Q 
“The total period a building lasts or is expected to last...” is the definition of \_\_\_\_\_\_\_\_\_ life.
useful
expected
real
physical
A

physical

125
Q 
The credibility of assignment results is always measured in the context of the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
intended use
value needed for the client's purposes
applicable state requirements
highest and best use
A

intended use

126
Q

A single unit residence sold for $126,000. It was rented for $1,100 per month but the market rent was $1,200. What is the GRM indicated by this sale?

  1. 1
  2. 6
  3. 0
  4. 5
A

105.0

126,000 / 1,200 = 105

127
Q 
“The anticipated income from all operations of the real estate after an allowance is made for vacancy and collection losses and an addition is made for any other income” is the definition of \_\_\_\_\_\_\_\_\_\_\_\_ income.
effective gross
potential net
net operating
excess
A

effective gross

128
Q 
A management fee usually is based on a percentage of the \_\_\_\_\_\_\_\_\_ income.
gross
reserve
net operating
after-tax
A

gross

129
Q 
A dwelling has a reproduction cost of $625,000. It is 10 years old and has an effective age of 12. Its remaining economic life is estimated to be 48 years. What is the depreciated value of the improvements by the age-­life method, before including the site value?
$500,000
$520,833
$525,000
$533,333
A

$500,000

10/48 = .2

625,000 x .20 = 125,000

625,000 - 125,000

130
Q 
Footings need to be \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ below average frost penetration levels.
exactly 6 inches
no more than 9 inches
at least 12 inches
at least 36 inches
A

at least 12 inches

131
Q 
Each of these is a variable expense EXCEPT
payroll
utilities
maintenance
taxes
A

taxes

132
Q 
Curbs, gutters and grading are examples of
site
site improvements
personal property
temporary improvements
A

site improvements

133
Q 
A \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ home has a permanent steel chassis, wheels and axles.
panelized
modular
pre-cut
manufactured
A

manufactured

134
Q 
Drilled wells need to use \_\_\_\_\_\_\_\_\_\_ until the drilling enters \_\_\_\_\_\_\_\_\_\_\_.
perforated tile, the house
casing, bedrock
rotary drills, shale
casing, sandstone
A

Casing, bedrock

135
Q 
The cost estimating method most commonly used by residential appraisers is the \_\_\_\_\_\_\_\_\_\_\_\_ method.
comparative-unit
quantity survey
unit-in-place
index
A

comparative unit

Basic Appraisal Procedures (12 decks)

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