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Study Guide Latest Updated 2024/2025.
The most common heating systems in residential construction today are
-hot water -heat pumps -forced warm air -electric radiant - anshot water A _______________ home has a permanent steel chassis, wheels and axles.
-panelized -modular -pre-cut -manufactured - ansmanufactured "The total period a building lasts or is expected to last..." is the definition of _________ life.
-useful -expected -real -physical - ansphysical "The actual rental income specified in a lease" is the definition of ___________ rent.
-deficit -contract -market -lease - anscontract A comparable new house just sold for $440,000. You estimate the value of the site at $90, and the cost of the site improvements at $15,000. It has 2,885 square feet of GLA. What is its unit cost?
-$108. -$116. -$120. -$124.90 - ans-$116.
Comparative - Unit Method - Market Derivation. $440,000 - $90,000 - $15,000 = $335,000. $335,000 ÷ 2,885 = $116.12. A one-and-a-half-story house is commonly known as a
-cape cod -ranch -split-level -split-entry - anscape cod Appraisal fees are examples of _______________ costs.
Study Guide Latest Updated 2024/2025.
-direct -indirect -unnecessary -replacement - ansindirect Separate site valuations would likely be required in which of the following situations:
-cost approach -condemnation appraisals -highest and best use analysis -any of the above - ansany of the above When measuring a condominium you should calculate ____ using _______ measurements.
-GLA, exterior -GBA, interior -GLA, interior -GBA, exterior - ansGLA, interior 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?
-24. -25. -27. -28.7 - ans24. 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 - ans-subject property and comparable sales "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 - ansspecific data In the sales comparison approach, sales data on __________ sales should be collected.
-one or two -no more than two -exactly three -at least three - ansat least three
Study Guide Latest Updated 2024/2025.
J-bolts are used to anchor the _________ to the __________.
-joists, foundation -sill plate, foundation -joists, girders -foundation, footings - ans-sill plate, foundation Which type of depreciation occurs off the site?
-curable -short-lived -physical -external - ansexternal Functional obsolescence could be caused by all of the following EXCEPT
-superadequacies -layout problems -deferred maintenance -outmoded items - ansdeferred maintenace 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 - ansconditions of sale 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 - ans-income-producing or suitable for income production The 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 - ansclient, name or type 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 median of the GRMs?
Study Guide Latest Updated 2024/2025.
99.9 - ans95. 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 - anshighest and best use analysis 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 - ans-land residual and ground rent capitalization 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 median of the GRMs?
115 there is no median - ans109. 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, -$23, -$31, -$46,000 - ans$46,
Exercise 2. 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. A partial estate could be created by the existence of all the following EXCEPT
-life estate -easement
Study Guide Latest Updated 2024/2025.
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?
-$7, -$87, -$305, -$299,500 - ans$305, The last step in the valuation process is
-report the final opinion of value -estimate land value -define the problem -determine the scope of work - ansreport the final opinion of value Which of the following would NOT be general data?
-mortgage rates -unemployment rates -subject property assessment -property tax rates - anssubject property assessment 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 mode of the GRMs?
-96. -95. -94. -There is no mode - ansthere is no mode Each of these is a variable expense EXCEPT
-payroll -utilities -maintenance -taxes - anstaxes If a cost manual is used, the result is _____________ cost.
-replacement -reproduction -depreciated -insurable - ansreplacement A property sold for $2,350,000. The net operating income was verified as $294,640. The capitalization rate indicated by sale is ____%.
-11.4%
Study Guide Latest Updated 2024/2025.
-13.2% - ans12.5% Extensive research on current construction trends and figures is conducted by
-HUD -U.S. Census Bureau -NAHB -local MLS systems - ansNAHB 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 - ans-the subject property and the comparable sales "The relationship or ratio between the sale price or value of a property and its periodic gross rental income" is the definition of
-yield rate -operating expense ratio -gross rent multiplier -capitalization rate - ans-gross rent multiplier The _______________ method has good application in valuing land in rural areas and in older, urban areas.
-extraction -subdivision development -land residual -ground rent capitalization - ans-extraction "The age of property that is based on the amount of observed deterioration and obsolescence it has sustained" is the definition of ____________ age.
-actual -historic -chronological -effective - ans-effective Early ductless heating systems were called
-geothermal systems -heat pumps -gravity systems -active solar systems - ansgravity systems
Study Guide Latest Updated 2024/2025.
-increasing and decreasing returns -anticipation -none of the above - anssubstitution Which was the earliest form of electrical wiring?
-aluminum -Romex -knob and tube -BX - ansknob and tube "The type of data and the extent of research and analyses" is the definition of
-required data -scope of work -valuation process -workflow diagram - ansscope of work Developers often value land on a basis of price per
-cubic yard -front foot -square foot -buildable unit - ansbuildable unit Price per room is a common unit of comparison when appraising:
-2-4 unit residential properties -vacant lots -one unit residences -retail stores - ans-2-4 unit residential properties When the property being appraised is a one-family property that will be used as an investment property, Fannie Mae requires that the appraiser must prepare a ______________.
-comparative market analysis -Form 1004 only -Form 1004 and Form 1007 -Form 1025 - ans-Form 1004 and Form 1007 An appraisal with an effective date at some point in the future is called a(n) ___________ appraisal.
-retrospective -speculative -prospective -effective - ansProspective "The age of property that is based on the amount of observed deterioration and obsolescence it has sustained" is the definition of ____________ age.
Study Guide Latest Updated 2024/2025.
-actual -historic -chronological -effective - anseffective "The amount by which contract rent exceeds market rent at the time of the appraisal...." is the definition of __________ rent.
-excess -deficit -effective -economic - ansexcess "The type of data and the extent of research and analyses" is the definition of
-required data -scope of work -valuation process -workflow diagram - ansScope of Work Another name for girder is:
-heater -beam -heat pump -frame - ansBEAM 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 - ans-cost new, plus site value
The cost approach formula states that cost new, minus depreciation, plus site value, equals property value 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 - ansAll of the above What unit of measurement is typically used for single-family homes?
-gross lineal footage
Study Guide Latest Updated 2024/2025.
Cost Approach Using Age- Life Method. 10 ÷ 50 = .20 or 20% depreciation. $240,000 X .20 = $48,000 depreciation. $240,000 - $48,000 = $192,000. $192,000 + $60,000 - $252, A management fee usually is based on a percentage of the _________ income.
-gross -reserve -net operating -after-tax - ansGross 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 - ans-physical, functional, and external Fannie Mae says the cost approach ____________________.
-is always required -is optional -may not be used -is required only in 2-4 unit properties - ansIs optional Fill, grading and permits are examples of improvements that create a
-Site -Site improvement -Building -Attachments - ansSite Footings should be ________ as wide as the ____________.
-at least, foundation wall -twice, slab is deep -twice, foundation wall -three times, sill plate - ansTwice, Foundation Wall
Footings should be twice as wide as the foundation wall 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 - ansMarket Data GLA includes _______________ but not _______________.
Study Guide Latest Updated 2024/2025.
-covered porches, attics -above grade finished area, garages -finished basements, heated enclosed porches -below grade heated area, unfinished basements - ansAbove Grade Finished area, garages
GLA includes ABOVE GRADE FINISHES but not GARAGES. Flood maps are prepared by
-FEMA -HUD -Fannie Mae -NAHB - ansFEMA 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 - ansPostal Address When appraising a 2-4 unit residential property, an appraiser would measure and use _______________ area.
-buildable -gross building -gross leasable -net leasable - ansgross building EIFS is also known as
-strawbale -Hardiplank -sandwich panels -synthetic stucco - ansSynthetic stucco The _______________ method has good application in valuing land in rural areas and in older, urban areas.
-extraction -subdivision development -land residual -ground rent capitalization - ansExtraction
The EXTRACTION method has good application in valuing land in rural areas and in older, urban areas. What is another name for "indirect costs"?
Study Guide Latest Updated 2024/2025.
-HUD
-U.S. Census Bureau -NAHB -local MLS systems - ansNAHB What is the most common type of framing currently being used in new homes?
-platform frame -balloon frame -log frame -post and beam - ansPlatform frame 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 - answhenever it is necessary for credible results The most complex method of site valuation is the _______________ method.
-allocation -cost -sales comparison -subdivision development - ansSUBDIVISON COMPARISON
The most complex method of site valuation is the SUBDIVISION COMPARISON method. 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 - ansMinus Depreciation, plus site value
The cost approach formula states that reproduction or replacement cost new, MINUS DEPRECIATION, PLUS SITE VALUE, equals property value 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 - ansPercolation Which cost estimating method is the most detailed and time-consuming to develop?
Study Guide Latest Updated 2024/2025.
-index -quantity survey -unit-in-place -none of the above - ansQuantity Survey
The Quantity Survey cost estimating method is the most detailed and time-consuming to develop. All of the following could be sources of general data EXCEPT
-utility companies -school districts -zoning ordinances -departments of transportation - ans-zoning ordinances
Zoning ordinances wouldn't provide general data What type of framing became popular in the 1800s with the advent of the steam-powered sawmill?
-platform frame -balloon frame -log frame -post and joist - ansBalloon Frame
Balloon Framing became popular in the 1800's with the advent of the steam-powered sawmill 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,
- $1,098,
- $1,107,
- $1,138,842 - ans- $1,138,
Cost Index Trending Solution. 201.8 ÷ 133.6 = 1.51. $754,200 X 1.51 = $1,138,842. 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%
- 10.2%
- 11.5%
- 12.4% - ans12.4%
Study Guide Latest Updated 2024/2025.
-effective age, total economic life -actual age, remaining economic life - ansEFFECTIVE AGE, TOTAL ECONOMIC LIFE
In the age-life method of estimating depreciation, the EFFECTIVE AGE, is divided by the TOTAL ECONOMIC LIFE "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 - ansSpecific data The first step in the valuation process is
-list the data needed -estimate land value -define the problem -determine the scope of work - ansDefine the problem A partial estate could be created by the existence of all the following EXCEPT
-life estate -easement -encroachment -condominium - anscondominium 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 85. By the capitalized value method, how much is the depreciation attributable to the lack of air conditioning?
- $4,
- $4,
- $4,
- $5,000 - ans$
Capitalization of Income Loss. $1,100 - $1,050 = $50 rent loss. $50 X 85 = $4,250. A property sold for $200,000. There was a $20,000 down payment and the rest was in the form of a 30-year mortgage at 6% interest. The seller paid 3 points at the closing. How much was that?
-$ -$3, -$5, -$6,000 - ans$
Study Guide Latest Updated 2024/2025.
Points. $200,000 - $20,000 = $180,000. $180,000 X .03 = $5,400. The most common brownfield contaminant is
-sulphur -cyanide -lead -petroleum - ansPetroleum Keyways are employed in which type of foundation walls?
-stone -wood -concrete block -poured concrete - ansPoured Concrete "The relationship or ratio between the sale price or value of a property and its periodic gross rental income" is the definition of
-yield rate -operating expense ratio -gross rent multiplier -capitalization rate - ansgross rent multiplier 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 - ansFinancing terms
If a comparable property sells with atypical financing, we may have to make an adjustment for FINANCNG TERMS Which entity produces the most commonly-used land appraisal report form?
-Freddie Mae -HUD/FHA -VA -It is a generic form - ansIt is a generic form A comparable new house just sold for $440,000. You estimate the value of the site at $90, and the cost of the site improvements at $15,000. It has 2,885 square feet of GLA. What is its unit cost?
