Quiz Income Approach Ch 17-18 Flashcards Preview

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Flashcards in Quiz Income Approach Ch 17-18 Deck (31)
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1
Q

“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

A

Reconciliation criteria

2
Q

A property sold for $125,000. It had two 5-room apartments, one 4-room apartment and a 3-room studio apartment. What did it sell for per room?

A

7353

3
Q

According the definition of “appraisal” in USPAP, a value opinion must be numerically expressed as

A

A specific amount, A range of numbers, A relationship to a previous value opinion or numerical benchmark

4
Q

Adjustments for quality, condition and energy efficiency can be made in the _________ of the SRIPAR.

A

Sales comparison grid

5
Q

Adjustments to comparable sales should be made when there is ______________ difference between a sale and the subject property.

A

A significant, measurable

6
Q

If you determine that the best indication of value for a property is $46.00 per square foot and the square footage of the property is 2,462 SF, what is the indicated value of the property?

A

$113,252. $46 X 2,462 = $113,252

7
Q

In the current SRIPAR (Mar 05) unit indicators are developed from ___________ figures.

A

Both gross and adjusted

8
Q

In the current SRIPAR (Mar 05) you must reconcile a minimum of _______ value indicators.

A

7

9
Q

In the sales comparison reconciliation, how many sales should we have before we consider using a statistical analysis?

A

6 or more

10
Q

Income and value are _______ and move in the same direction.

A

Interdependent

11
Q

Ranking of the comparable sales in order of _________ makes a logical and persuasive argument.

A

Desirability

12
Q

Reconciliation takes place

A

Throughout the report

13
Q

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

A credible appraisal

14
Q

Standards Rule 1-1(c) of USPAP says an appraiser must “not render appraisal services in __________________ manner…”

A

A careless or negligent

15
Q

The income approach is required by Fannie Mae for properties appraised on the ______________ form.

A

1025

16
Q

The most common definition of market value defines it as “the __________ price that a property __________ bring…”

A

Most probable, should

17
Q

The reconciliation is like a lawyer’s __________ to the jury.

A

Summation

18
Q

To obtain a higher net income you should choose a property that

A

Is energy efficient

19
Q

What does SRIPAR stand for?

A

Small Residential Income Property Appraisal Report

20
Q

What is the form number for the Fannie Mae SRIPAR form?

A

1025

21
Q

When analyzing comparable sales, pay more attention to adjustments made in the _____________ of the sales grid.

A

Upper part - transactional elements

22
Q

When we do a reconciliation of the sales comparison approach, what is the proper procedure?

A

Let the data fall wherever it does.

23
Q

When would you develop the income approach for a one-unit property appraisal reported on the URAR?

A

When the approach is necessary for credible assignment results

24
Q

Where do you address the strengths and weaknesses of each approach of the SRIPAR form?

A

In the Reconciliation section

25
Q

Which of the following are good procedures when making a reconciliation of sales data?

A

Be persuasive, Be succinct, Be direct

26
Q

Which of these is not a reason why we should expect differences in the adjusted sales process of comparable sales?

A

The real estate market is imperfect. We cannot always have access to 100% of the information we need. It is rare to find perfectly informed buyers and sellers, acting unemotionally.

27
Q

Which of these numbers would be appropriately rounded?

A

430000

28
Q

Which of these unit indicators was a new addition to the current version of the SRIPAR?

A

Sale price per bedroom

29
Q

Which technique is commonly used for estimating the value of small residential income properties?

A

Gross rent multiplier

30
Q

Which would be part of the review process of your final reconciliation?

A

Was the scope of work adequate, given the intended use and intended users? Were the steps logical? Were our data sources and methods of collection and verification adequate?

31
Q

The final reconciliation process consists of various items:

A
  • Review
  • Appropriateness
  • Consistency
  • Accuracy
  • Relevance
  • Quality of data
  • Quantity of data