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TEXAS SAE: REAL ESTATE APPRAISAL EXAM REVIEW
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TEXAS SAE: REAL ESTATE APPRAISAL EXAM REVIEW
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TEXAS SAE: REAL ESTATE APPRAISAL EXAMREVIEW
Transferability - Answers -Which value-influencing DUST factor addresses the ease
with which the property can be conveyed to another?
Present index ÷ Index at time of construction x Original cost = Present cost
To arrive at the present cost, the appraiser applies a factor that represents the costs of
construction over time up to the appraisal date (present index ÷ index at time of
construction) multiplied by the subject building's original cost. - Answers -Which of the
following formulas is used with the index method to find the reproduction cost?
The same neighborhood - Answers -When possible, comparable sales from ______
should be used.
A parcel of land, the structures on it, and shared common areas - Answers -Ownership
in a planned unit development consists of ______.
Unpaid taxes become a lien against the property. - Answers -In what way is taxation an
inherent burden on private landownership?
Deductible on her personal income tax returns
As the resident in a cooperative, her share of mortgage interest and real estate taxes is
deductible on personal income tax returns. - Answers -Bianca wants to buy a
cooperative, but she's unsure that she can afford it. With a cooperative, her share of
mortgage interest and real estate taxes will be ______.
The appraiser, the lender, and the consumer - Answers -The Appraiser Independence
Requirements protect which party or parties?
10X (100,000/10,000) - Answers -Using the gross income multiplier (GIM) valuation
method, a property's sales price is divided by its gross income. If a property has a sales
price of $100,000 and gross income of $10,000, what is its GIM?
Appraiser - Answers -Which professional is hired by the buyer and lender to give an
opinion of value of the property?
The appraiser selects the adjusted sales price of the property most like the subject to
use as the indicated value. - Answers -Which of the following best describes how an
appraiser reconciles the adjusted sales prices of the comparable properties to indicate
the value of the subject property?
An estimate of value for a specific purpose, party, and property as of a specific date -
Answers -What is the definition of an appraisal?
,Condo Unit - Answers -Which of the following properties requires the appraiser to
include information about the monthly fees charged by the property management, the
location of the subject property within a community, and the areas considered private or
public?
Severalty Ownership
Corporations own property owned in severalty, like individuals do. - Answers -If Mega
Corporation owns real property, chances are it owns it in ______.
Land Trust
A land trust is similar to other trusts except that it's formed specifically to hold real
estate. - Answers -James creates a trust to hold a piece of real estate he owns. He
directs a corporate fiduciary to hold title to the real estate and provides instructions for
the management, control, and disposition of the real estate upon his death. Given that
the trust only holds real estate, James likely set up a(n) ______ trust.
Local, state, and federal - Answers -Jarvis is a builder. The building codes that apply to
Jarvis's work were established at what level (or levels) of government?
Annual dollars per square foot - Answers -An appraiser is comparing income from a
multi-tenant office building to comparable properties, so he converts the income for
each property to ______.
the number of units of that component part in the subject building
unit-in-place method, appraisers multiply the cost per unit of measure of each
component part of the subject property's structure by the number of units of that
component part in the subject building, and then add them together to determine the
total reproduction cost. - Answers -To determine the total reproduction cost of a subject
building using the unit-in-place method, an appraiser multiplies the cost per unit of
measure of each component part of the subject property's structure by the ______ and
then adds them together.
The expected rate of return on investment
A capitalization rate is the expected rate of return on an investment, and can be
calculated using the formula of net operating income ÷ value = rate (NOI ÷ V = R). -
Answers -What is a capitalization rate?
Income approach - Answers -When an appraiser analyzes a property's ability to earn
future income, which appraisal approach is the appraiser using?
62.5 (250X.25) - Answers -What's 25% of 250?
Abstraction method
, Total sales price - cost of improvements less depreciation = land value
which is sometimes used for large parcels of land when there are few or no comparable
sales available. It's not considered as accurate as the sales comparison method. -
Answers -What method of land valuation uses the following calculation? Total sales
price - cost of improvements less depreciation = land value
The market values the view from the subject property more. - Answers -Looking at the
sales comparison section of the URAR, you see that "+$5,000" has been noted next to
the description of the view for comparable property A. Assuming that this is an accurate
adjustment, which of the following statements is true?
1/3 (2X5=10 5X6=30 10/30) - Answers -What's 2/5 x 5/6?
Market extraction - Answers -Mel is estimating the value of a depreciated item using
comparable properties' sales prices. Which method is Mel using to measure
depreciation?
Convert monthly rental income to annual dollars per room
GRM and GIM are methods of capitalizing income. Finding market rent involves
comparing properties based on a common unit of measure, which for residential
properties is by the room. - Answers -An appraiser is working to find the market rent for
a 10-unit apartment building. In order to compare the subject property to similar
properties, she will ______.
Licensed Real Property Appraiser
Residential: one- to four-unit properties valued up to $1 million; no complexities;
complex one- to four-unit properties valued at up to $250,000 - Answers -A(n) _____ is
allowed to appraise a complex one- to four-unit residential property, but only if the
property is valued at $250,000 or less.
Substitution - Answers -The assumption that if an identical property were sold recently,
its sales price should be a good indicator of the value of the subject property describes
which value principle?
to provide the lender with an accurate opinion of the property's market value - Answers -
Why do appraisers use the Uniform Residential Appraisal Report?
Capitalization Rate - Answers -is the expected rate of return on an investment
Net operating income ÷ value = rate
(Or, in simpler terms, NOI ÷ V = R) - Answers -Capitalization Rate the appraiser will
analyze the value-to-income ratio for a comparable property, then apply the same
capitalization rate to the subject property's net income to calculate the value using the
following formula:
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