13 Ch7 Small Residential Income Property Appraisal Report quiz - Sheet1

Question 1

A duplex has 2,140 SF of GLA with two identical units each with 6 rooms, 3 bedrooms, 1 bathroom. Each rents for $1,150 per month. What is the indicated rent per square foot?

Answer 1

1.07. 2,140 ÷ 2 = 1,070. 1,150 ÷ 1,070 = 1.07

Question 2

If you use a 1025 form when completing an appraisal for a Fannie Mae loan on a 4-unit property located in a cooperative project, you would also have to complete the __________ section of the Individual Cooperative Interest Appraisal Report form and attach it to your report.

Answer 2

project description

Question 3

When using the N.A.D.A. system, the first step is to look up the

Answer 3

State in which the home is located

Question 4

A triplex has 2,990 SF of GBA with three identical units each with 5 rooms, 2 bedrooms, 1 bathroom. It sold for $428,000. What is the indicated sale price per square foot of GBA?

Answer 4

$143.14

Question 5

Which unit of measurement is primarily used in the appraisal of 2-4 unit residential properties?

Answer 5

gross building area

Question 6

A property has two units; the market rent for each unit is $600 per month. The indicated GRM is 115. What is the indicated value for the subject by the income approach?

Answer 6

138000. 2 X $600 = $1,200. $1,200 X 115 = $138,000.

Question 7

If a property is subject to rent controls, you probably will be unable to employ

Answer 7

A Gross Rent Multiplier approach

Question 8

A duplex has 2,140 SF of GBA with two identical units each with 6 rooms, 3 bedrooms, 1 bathroom. It sold for $254,000. What is the indicated sale price per bedroom?

Answer 8

42333. 2 X 3 = 6. $254,000 ÷ 6 = $42,333.

Question 9

The perception that value is created by the expectation of benefits to be derived in the future is the definition of the principle of __________.

Answer 9

Anticipation

Question 10

What report form would an appraiser use when completing an appraisal for a Fannie Mae loan on a 2-unit property located in a condominium development?

Answer 10

SRIPAR (1025)

Question 11

A property has four units. 2 are rented for $700, 1 for $725, and 1 for $775. The market rent for each unit is $750 per month. The indicated GRM is 118. What is the indicated value for the subject by the income approach?

Answer 11

354000. 4 X $750 = $3,000. $3,000 X 118 = $354,000.

Question 12

The FFIEC Geocoding system is a good source for

Answer 12

Census tract information

Question 13

A property has four units; the market rent for each unit is $750 per month. The indicated GRM is 135. What is the indicated value for the subject by the income approach?

Answer 13

405000. 4 X $750 = $3,000. $3,000 X 135 = $405,000.

Question 14

A duplex has 2,140 SF of GBA with two identical units each with 6 rooms, 3 bedrooms, 1 bathroom. It sold for $254,000. What is the indicated sale price per room?

Answer 14

21167. 2 X 6 = 12 rooms. $254,000 ÷ 12 = $21,167.

Question 15

A property has three units; the market rent for each unit is $850 per month. The indicated GRM is 90. What is the indicated value for the subject by the income approach?

Answer 15

229500. 3 X $850 = $2,550. $2,550 X 90 = $229,500.

Question 16

The SRIPAR form uses

Answer 16

both GLA and GBA

Question 17

When estimating cost new of a two-unit property, an appraiser realized his cost manual is two years old. He will BEST be able to bring these cost figures up to date by using

Answer 17

time multipliers

Question 18

Properties that are used as rental comparables _____________.

Answer 18

do not have to be from properties they have sold – they just need to be rented.

Question 19

The N.A.D.A. system is different from any of the other cost services such as Marshall & Swift, Boeckh, Dodge, Means, etc. because their derived cost already includes

Answer 19

Depreciation

Question 20

A duplex has 2,140 SF of GBA with two identical units each with 6 rooms, 3 bedrooms, 1 bathroom. It sold for $254,000. What is the indicated sale price per square foot of GBA?

Answer 20

118.69. $254,000 ÷ 2,140 = $118.69.

Question 21

A group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises is the definition of

Answer 21

neighborhood

Question 22

Fannie Mae states that if seller concessions are common for the area, the appraiser _______________.

Answer 22

should still make adjustments to the comparable sales.

Question 23

A triplex has 2,990 SF of GBA with three identical units each with 5 rooms, 2 bedrooms, 1 bathroom. It sold for $428,000. What is the indicated sale price per unit?

Answer 23

142667. $428,000 ÷ 3 = $142,667.

Question 24

If the Cost Approach is developed in an appraisal, Fannie Mae requires the appraiser to provide a summary of support for his/her opinion of __________.

Answer 24

site value