Items of information on value influences that derive from social, governmental, and environmental forces and originate outside the property being appraised is the definition of: An appraisal with an affective date at some point in the future is called a or an blank appraisal. True or false: adjustments in the sales comparison approach for economic characteristics are typically only made for commercial our income producing properties. GBA, interior Net Adjustment (Total). information from other Fannie Mae published sources. When measuring a condominium you should calculate blank using blank measurements. Zoning allows it to be subdivided into 8 lots and it is estimated that each lot could sell for $50,000. The method that treats the land value as a percentage of the total value is the __________ method. What was the cost per square foot? Price per room is a common unit of comparison when appraising GRM Uses monthly rent, while GIM uses annual income. What is the depreciated value of the improvements by the age-life method, before including the site value? The Remaining Economic Life of an improvement is the total economic life minus its effective age. Assuming that he spends equal amounts on both goods, draw an indifference curve showing the optimum choice. Site development costs (sewer, grading, road, etc.) land residual and subdivision development (888) 867-7620. Cost Index Trending Solution. "Industrial Designs has been awarded a contract to design a label for a new wine produced by Lake View Winery. Appraisers are cautioned to identify the exact _______________ of market value, and its _______________, applicable in each appraisal completed for the purpose of market value. Do you think the total benefits outweigh the total costs, or vice versa? For additional information, see B4-1.3-05, Improvements Section of the Appraisal Report. condominium. ordinary assumption Determine depreciation percentage by diving effective life by total economic life: 12 / (12 + 38 = 50) = 24%. "The age of property that is based on the amount of observed deterioration and obsolescence it has sustained" is the definition of ____________ age. An estimate of remaining economic life is required by. Add them up and divide by 7 = 96.3. direct indirect reproduction replacement direct cost/benefit 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 land value? $305,000 - $70,455 = $234,545. plus depreciation, minus land value minus depreciation, plus indexed costs $560,000 - $65,000 = $495,000. balloon frame index taxable income The order in which quantitative adjustments are applied to the sale price of comparable properties is the: What adjusting a comparable sale for financing terms in an FHA appraisal, FHA instructs the appraiser to adjust: According to the requirements of that uniform appraisal data set, and appraiser is required to write a location as: An appraiser uses a sale that sold is the result of the owners bankruptcy, and the appraiser adjust the sale because it is not an arms length transaction. [Name] Number of years remaining of economic life for the property. feel free to email. 221.8 138.5 = 1.60. Besides properties that have recently sold, other value . deed restrictions. market indirect Microalgae represent a promising solution in addressing the impacts associated with the current agricultural and manufacturing practices which are causing irreparable environmental damage. SUBJECT SECTION New Construction: For new construction, when property taxes have not yet been assessed on the For site condos reported on the 1004 form, only the 'Opinion of Site Value' and 'Estimated Remaining Economic Life' are required. hot water $350,000 X .2 = $70,000 (current building value). An estimate of remaining economic life is required by . What is the most common type of framing currently being used in new homes? Which would not be a typical source of building costs for the appraiaer? log frame Cost Data Sources. Architectural and engineering fees are examples of _____________ costs. closing, effective date of the appraisal reproduction, A partial estate could be created by the existence of all the following EXCEPT Due to other project commitments, Lisa has a maximum of 50 hours available to work on this project. Fill, grading and permits are examples of improvements that create a. Modular homes are constructed to meet __________ code requirements. Keyways are employed in which type of foundation walls? $1,610.55, Separate site valuations would likely be required in which of the following situations: VA Percolation tests are done to test the drainage capacity of soils. 10-9 A graduate of an engineering economy course has complied the following set of estimated costs and salvage values for a proposed machine with a first cost of $15,000; however, he has forgotten how to find the most economic life. The other three instances could create a partial estate; a condo is a complete form of ownership. ground rent capitalization extraction and allocation. ), Selling, Securitizing, and Delivering Loans, Research Actual age of property is 11 years. A cement mixture that is applied to the exterior of a foundation wall is called. Economic life of equipment - 8 years. it was built in 2010. . mass appraisal, An appraisal with an effective date at some point in the future is called a(n) ___________ appraisal. -Rehabilitation is not feasible. It is in good condition and you estimate the effective age to be 10 years. $305,000 X .231 = $70,455. estimates and will comment on the methodology used to estimate depreciation, effective age and remaining economic life. Multiply the Cost of the Long-Lived Items by the depreciation percentage: $191,760 X 24% = $46,000. However, related property deficiencies must be discussed in the sections of the appraisal report that address the improvements analysis and comments on the condition of the property. Hypothetical condition 520 Mode. $350,000 - $45,000 = $305,000. Cost Index Trending. entrepreneurial profit, Building permits and worker's compensation are examples of __________costs. $155,000 as single home site; B. The first step in the valuation process is Site development costs (sewer, grading, road, etc.) Lease term is for the major part of the remaining economic life of the asset. $250,000 - $152,000 = $98,000 (land value). What is the mode of the GRMs? $375,000 - $70,000 = $305,000 (land value), Continental Drift Station Lab - Flashcards -, Basic Appraisal Principles Exam Practice #3. would cost $65,000. retail stores, Basic Appraisal Procedures Ch. sales comparison personal property It is 12 years old and has an estimated remaining economic life of 38 years. The net operating income was verified as $294,640. Events, B4-1.3-05, Improvements Section of the Appraisal Report, How to do a hard refresh in Internet Explorer. In highest and best use of analysis, which criterion is applied last? If a comparable property sells with atypical financing, we may have to make an adjustment for ___________. expected remaining economic, remaining economic Comparative-Unit Method - Market Derivation. subject property assessment direct soft Two squares of 180-pound roof shingles would weigh _____ pounds. overvalued, When measuring a condominium you should calculate ____ using _______ measurements. Princess Victoria, the fourth daughter of the King, has undergone an operation for appendictis. The capitalization rate indicated by sale is ____%. To make sure that accurate and appropriate comparisons are made. Access to Appraisal Reports VA staff, lenders, agents, servicers, and other requesters with VA issued ID numbers that are associated with the loan number will be able to retrieve the appraisal from E-Appraisal for review, issuance of the Notice of Value (NOV), or other functions. $3,750. casing, bedrock That is the most complex and involves discounted cash flow analysis. The Economic Age/Life Method is big on the new National Licensing Exam. mortgage rates The first step in the valuation process is: An appraiser counters an underground Storage tank. income capitalization, Curbs, gutters and grading are examples of indirect $919.90 360 The URAR sales comparison grid requires you to enter in the _________ age of the subject property and comparables. Physical deterioration, functional obsolescence It has an effective age of 20 years and a total expected economic life of 65 years. The method that estimates land value based on a percentage of the total property value is the _______________ method. The most common unit of comparison for land in rural areas is price per _______. electric radiant, "The actual or anticipated net income that remains after all operating expenses are deducted from effective gross income but before mortgage debt service and book depreciation are deducted" is the definition of The appraiser estimates the total age, effective age, and remaining life of the improvements. Note: This field only appears for older cases with an . An appraiser must not allow the intended use of an assignment or a client's objectives to cause the assignment results to be __________. What is the first step in the sales comparison approach process? However, this method does not consider individual short-term items like the $175,000 $250,000 $287,500 $295,500. It is easy to use and easy to explain to a client. deed restrictions wood 186 (thousands) X $6.45 = $1,199.70. . The cost approach formula states that ______________, minus depreciation, _______________, equals property value. The most common unit of comparison for land in urban areas is price per _______. What is the land value? $350,000 X .2 = $70,000 (current building value). All of the following would be considered short-lived items EXCEPT, An estimate of remaining economic life is required by, Cost Data Sources. fee simple estate Disposal value after 8 years - Zero. Some highly desirable areas can have older residential structures that are well maintained and in good condition. plus depreciation, plus site value . hot water In a market value appraisal, every comparable sale should have been sold in an _______________ transaction, with no undue _______________. $1,100 - $1,050 = $50 rent loss. square foot $1,100 - $1,050 = $50 rent loss. A _______________ home is built in accordance with the HUD Code. The cost approach is primarily based on which valuation principal? All of the following are required exhibits for a Fannie Mae appraisal report except: Fannie Mae says the appraiser must base his or her analysis and any adjustments to comparable sales on: Expenditures made immediately after purchase. "A method used to convert future benefits into present value by discounting each future benefit at an appropriate yield rate or by developing an overall rate that explicitly reflects the investment's income pattern, value change and yield rate" is the definition of. $305,000 The income approach is only required if the appraiser determines that it is necessary to develop credible assignment results. $305,000 X .231 = $70,455. report the final opinion of value A management fee usually is based on a percentage of the _________ income. "The estimated cost to construct, at current prices as of the effective appraisal date, an exact duplicate or replica of the building being appraised, using the same materials" is the definition of _______________ cost. Is the building's _____ life. $98,000 A 5 year old water heater with an expected life of 12 years and a replacement cost of $825 will have experienced depreciation of $__________. gross rent multiplier The URAR sales comparison grid requires you to enter in the _________ age of the subject property and comparables. Market conditions adjustments are referred to buy some appraisers as blank adjustments. cost new, plus site value, Appraisal fees are examples of _______________ costs. An ADU is generally an additional living area independent of the primary dwelling that may have been added to, created within, or detached from the primary dwelling. replacement, Today the _______________ technique of site valuation is used primarily in highest and best use analysis. sales comparison When the home resold it had not been improved at all. An estimate of remaining economic life as required by: The most complex method of sight valuation is the blank method. $625,000 X .20 = $125,000 depreciation. HUD What type of framing became popular in the 1800s with the advent of the steam-powered sawmill? The basic principle underlying the cost approach is the principle of ____________. It has 2,030 square feet of GLA. quantitative What is the total cost?". modified replacement. net leasable, A house is rented for $1,050 per month, but lacks air conditioning. $60,000 X 2.4 = $144,000. 1. $1,098,253 Which of these items is not required by Fannie Mae to be included as an exhibit in an appraisal report? Drilled wells need to use __________ until the drilling enters ___________. The reproduction cost of the improvements today would be $350,000 and the total depreciation is estimated to be 80%. You examine a construction contract to build a 2,448 square foot house and the total cost is $197,450. Which cost estimating method is the most detailed and time-consuming to develop? If they cost manual us use the result is _____ cost. This. gross rent multiplier. 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. $3,750 An estimate of remaining economic life is required by A VA. 5,000 acre ranch The reproduction cost of the building was $380,000 and it was 60% depreciated. Yes, it is a qualitative method. unit in a PUD. When using the sales comparison method and valuing aside, adjustments should be made for differences that are _____. $252,000 - $240,000 = $12,000. "The age of property that is based on the amount of observed deterioration and obsolescence it has sustained" is the definition of ____________ age. There are curable items totaling $45,000. A single parcel is valued at $450,000. Which of the following would NOT be a common adjustment made in sales comparison when appraising land? brownfield, "The amount an entrepreneur expects to receive for his or her contribution to a project" is the definition of Overall Capitalization Rate (RO). A method used to convert future benefits and a present value by discounting each future benefit at an appropriate yield rate or by developing an overall rate that explicitly reflects the investments income pattern, value change and you'll be right is the definition of: The basic formula for income capitalization states that value equals _____ divided by a _____. The useful life of an asset is the estimated duration to which you can reasonably expect an asset will remain functional and generate income, or provide other benefits. Required: 1. Parging is used on which kind of foundation wall? Which would not be a sub step and defining the problem? Which would not be a sub-step in defining the problem? How much income does yield capitalization use? platform frame "The estimated period over which existing improvements are expected to contribute economically to a property; an estimate of the number of years remaining in the economic life of a structure or structural components as of the effective date of the appraisal; used in the economic age-life method of estimating depreciation." Effective minus depreciation, plus site value, In most residential appraisals, the appraiser values What is its value by the cost approach? A comparable new house just sold for $340,000. Construction materials and workers' wages are examples of __________costs. cubic yard A well-maintained property has a low effective age and a high REL, whereas a property in disrepair will have a high effective age and a low REL. A house is rented for $1,050 per month, but lacks air conditioning. It is common and appraisal reports to include a map that shows the location of the: Map stats is a feature of which agency federal website? A property contains 3.2 acres and is worth: A. excess, Which entity produces the most commonly-used land appraisal report form? Estimate the market rent of the subject property. What is the amount of long-lived depreciation attributable to the building? So, in this case, let's say that the total economic life of the home is 57 years and it has an effective age of 15 years. 12 + 48 = 60 years (total economic life). Under the scope of the H2020-BBI MULTI-STR3AM project, an innovative large-scale . Appraisal fees are examples of _______________ costs. $85,000 per unit as a site for a duplex and C. $60,000 per acre as a retail site. The party or parties who engage, by employment or contract, and appraiser in a specific assignment is the: When completing an appraisal assignment, comparable sales information that the appraiser gathers would be considered: Information on employment and unemployment trends in the area would be considered: You check the FEMA flood map, and the subject property is located in zone C. Is this a special flood hazard area? A one-and-a-half-story house is commonly known as a, Capitalization of Income Loss. list the data needed possesses sufficient remaining economic life to warrant a long-term mortgage, assuming a reasonable level of continued maintenance. Marshall and Swift categorizes reinforced concrete frame commercial structures as class blank. LOCAL and GENERAL.

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