Basic Appraisal Procedures Chapter 4 Exam Questions and Answers Latest Update Graded A+
In the early 1600s, the first structures in America consisted of: - Answers one room, with a dirt floor
By 1650, there were a few houses being built with: - Answers two rooms, side by side
By about 1670 - Ans...
In the early 1600s, the first structures in America consisted of: - Answers one room, with a dirt floor
By 1650, there were a few houses being built with: - Answers two rooms, side by side
By about 1670 - Answers the first two story houses being constructed, with two rooms on each floor
From the 1950s until today, we have seen five basic housing types - based on the number of stories.
They are the - Answers • Ranch - 1 story
• Cape Cod - 1-½ story
• Two-story
• Split level - multi levels
• Split entry (sometimes called a split foyer, bi-level, or raised ranch) - one story with finished basement
(Note: Marshall & Swift refers to this type as a "two story bi-level")
who created Uniform Appraisal Dataset (UAD)? - Answers In 2011, Fannie Mae and Freddie Mac created
the Uniform Appraisal Dataset (UAD) which is a set of standardized reporting requirements used in
residential mortgage lending appraisal reports
A manufactured home is defined as: - Answers "A factory-built house manufactured under the Federal
Manufactured Home Construction and Safety Standards Act of 1976, commonly known as the HUD
Code."
Each HUD code manufactured home has a: - Answers a label on the exterior of each section containing a
three-letter designation plus a six- or seven-digit number. This is a red, metal 2" x 3" tag that is pop-
riveted to the exterior siding.
A modular home is defined as: - Answers "A factory-built house built in compliance with a building code
other than the HUD Code. This usually means that the home is constructed to the standards of the state
or local building code used by the governmental unit where the house is to be located. Note that the
California Factory-Built Housing Program uses the term factory-built housing (FBH) in place of the term
modular home."
HUD vs Modular homes - Answers the manufactured home is constructed on a permanent steel chassis
and has wheels and axles. It is meant to be hauled down the highway and arrives 100% finished. The
sections are joined together at the site and it is complete. Most significantly, it is built to meet the HUD
Code.
A modular home is built in sections, called boxes, which are lifted onto a truck and transported to the
site. The boxes are lifted off with a crane, or rolled off, onto the foundation. Then the boxes have to be
joined and finishing work performed at the site. A modular home is built to meet state and local codes,
not the HUD Code.
, Gross Living Area (GLA) is defined as: - Answers "Total area of finished, above-grade residential space;
calculated by measuring the outside perimeter of the structure and includes only finished, habitable,
above-grade living space. (Finished basements and attic areas are not generally included in total gross
living area. Local practices, however, may differ)."
the guidelines of Fannie Mae related to measurement and calculation of GLA:. - Answers these
requirements only apply to the appraisal of single-family homes for mortgages that are going to be sold
to Fannie Mae.
It is important that you carefully measure the GLA of residences. Fannie Mae says in its Selling Guide,
Section B4-1.4-14: - Answers "The most common comparison for one-unit properties is the above-grade
gross living area.
For units in condo or co-op projects, the appraiser must use: - Answers interior perimeter unit
dimensions to calculate the gross living area. In all other instances, the appraiser must use the exterior
building dimensions per floor to calculate the above-grade gross living area of a property.
For Bellow- Grade Areas- The Fannie Mae Selling Guide goes on to state: - Answers "Rooms that are not
included in the above-grade room count may add substantially to the value of a property-particularly
when the quality of the finish is high.
The appraiser must report the basement or other partially below-grade areas separately and make
appropriate adjustments for them on the 'basement and finished areas below-grade' line in the 'sales
comparison analysis' grid."
Gross Building Area (GBA) is distinctly different from gross living area. GBA is defined as: - Answers
"Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of
the above-grade area. This includes mezzanines and basements if and when typically included in the
region."
GBA is used in : - Answers measuring 2- to 4-unit residential properties. It is also sometimes used in
measuring commercial buildings, such as office buildings. It may include some unfinished areas or
common areas such as hallways.
Fannie Mae says in its Selling Guide, Section B-4-1.4-14,
"Gross building area: - Answers • is the total finished area including any interior common areas, such as
stairways and hallways of the improvements based on exterior measurements.
• is the most common comparison for two- to four-unit properties.
• must be consistently developed for the subject property and all comparables used in the appraisal.
• must include all finished above-grade and below-grade living areas, counting all interior common areas
such as stairways, hallways, storage rooms, etc.
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