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Appraisal final questions with answers.
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Appraisal final questions with answers.
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Appraisal final questions with answers.The four components of real property include ANS -Land, permanently affixed objects, appurtenant
rights, and that which is immovable
by law
These monthly average single family home prices were recently published by the local real estate board
in the subject neighborhood:
April $170,000 August $176,000
May 171,700 September 178,750
June 173,500 October 180,500
July 174,000
If your date of value is November, how much total time adjustment would be indicated for a June sale in
this neighborhood? (Hint: Project the April to October time trend to your date of value.) ANS -4%
Which of the following requires using a Hypothetical Condition, as defined in USPAP? ANS -A prospective
appraisal
For any land sale to be considered a valid comparable, it should be ANS -Both of the above
(Qualified as an open market transaction
Competitive with the subject property)
The principle of increasing and decreasing returns says that maximum value results from adding to the
agents of production ANS -Until they are in balance
You are deriving a gross income multiplier in the appraisal of a 14 unit apartment building. Market data
is as follows:
, 16 units sold for $1,200,000 with a gross income of $150,000.
12 units sold for $ 960,000 with a gross income of $120,000.
4 units sold for $ 480,000 with a gross income of $ 48,000.
What GRM is suggested for the property under appraisal? ANS -8
The reconciliation process considers all but one of the following ANS -The loan commitment
A lower density zoning code in a high rent apartment neighborhood has changed the usual comparison
units and rules of thumb for land value. If vacant apartment-zoned lots could formerly be developed to
12 units each, but now can be developed to only 6 units, what value change is likely? ANS -Both a and b
are likely
( A decrease in the value per square foot
An increase in the value per buildable unit)
"Effective" age most nearly means ANS -Relative condition and marketability for age
A new income property is being appraised and you have very few improved sales, and no vacant sales to
estimate land value. Assume the following, and solve for the land value, using the land residual
capitalization method.
Net operating income $ 64,000
Building cost $400,000
Interest rate 8%
Recapture rate 2% ANS -300,000
By the cost approach, estimate the value of a 40 year old, 2,000 square foot house, based on the
following:
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