Appraisal Quiz #1 Flashcards
- The appraiser should refrain from furnishing detailed information regarding:
a. Valuation
b. Time schedule
c. Construction items
d. All of the above
d. All of the above
Answer 7.01.04.00
The appraiser will thoroughly investigate and consider every material fact regarding the market value of the
appraised property. Every effort will be made to interview the property owners and to secure factual information on the subject property sales, costs, alterations, income and expense data, age, etc. The subject properties and comparable data shall be viewed in the field and all improvements to be appraised shall be carefully inspected. The appraiser should refrain from furnishing detailed information regarding valuation, time schedule or construction items. At the appraisal stage, such information is usually incomplete and subject to change.
- The Department of Transportation maintains a separation of the appraisal and acquisition functions, except that, the same person can appraise and negotiate a parcel if total valuation, excluding nonsubstantial construction contract work is:
a. $100,000 or less
b. $25,000 or less
c. Greater than $15,000
d. $10,000 or less
d. $10,000 or less
Answer 7.01.05.00
The Department of Transportation (Department) maintains a separation of the appraisal and acquisition functions, except that the same person can appraise and negotiate a parcel if total valuation, excluding nonsubstantial construction contract work, is $10,000 or less. This dollar limit also applies to revisions where the appraiser was previously assigned to negotiate the parcel. The valuation document can be either an appraisal or Waiver Valuation as discussed in 7.01.02.00 above.
- True or False? If the appraisal must be updated because of a delay in receipt of the environmental clearance, support required to produce the second appraisal is not eligible for federal participation.
a. True
b. False
b. False
Answer 7.01.06.00 Preliminary ROW
Final environmental clearance is a prerequisite to commencing regular right of way acquisition. The exception to this rule is when “early acquisition” is approved. See the Early Acquisition Guidelines (Reference 3-EX-6).
Appraisal support costs may or may not qualify for federal aid. PA&ED along with E-76 approval is the point at which parcel specific right of way support costs become eligible for federal aid on a federally eligible project.
- Anticipated donations must first be appraised unless the following apply:
a. The donation is initiated by the owner
b. The owner, after being informed of the right to receive just compensation, provides the Region/District with a signed statement or letter waiving said right to receive just compensation and releasing the State from its obligation to appraise the property.
c. Both A and B apply.
d. Neither A nor B apply since donations are never appraised.
c. Both A and B apply.
a. The donation is initiated by the owner
b. The owner, after being informed of the right to receive just compensation, provides the Region/District with a signed statement or letter waiving said right to receive just compensation and releasing the State from its obligation to appraise the property.
Answer 7.01.08.00
- The appraiser must advise the property owner of the State’s decision to appraise the property. The notice must be in writing and cover all of the following except:
a. All or a portion of the owner’s property may be acquired for public use.
b. Time frame the valuation should be completed.
c. The owner’s property is located within the project area.
d. A specific area is being considered for a particular public use.
b. Time frame the valuation should be completed.
Answer 7.01.10.00
The appraiser must advise the property owner of the State’s decision to appraise the property. The notice must be
in writing and cover the following:
A. A specific area is being considered for a particular public use, i.e., the project;
B. The owner’s property is located within the project area; and
C. All or a portion of the owner’s property (which should be generally described) may be acquired for public use.
- True or False? Any legal opinions involved in the appraisal process shall be documented in the Report.
a. True
b. False
a. True
Answer 7.01.13.00
- Minor deficiencies in appraisal reports should be corrected prior to approval. They include all of the following except:
a. Mathematical errors not affecting the value conclusion.
b. Project identification data
c. Requirement size
d. Typographical errors which could lead the reader to an erroneous conclusion.
c. Requirement size
Answer 7.01.16.01
changing the required size of the acquisition would affect the value conclusion i.e. Major Deficiencies
Minor deficiencies are deficiencies that do not affect the value, but should be corrected prior to approval.
- Federal project numbers are required for projects involving Federal participation in Right of Way costs. The Federal project number will appear on all of the following except:
a. Appraisal parcel diary
b. Appraisal Maps
c. All appraisal correspondences
d. Parcel Summary Page
a. Appraisal parcel diary
Answer 7.02.01.00
Federal project numbers are required for projects involving Federal participation in Right of Way costs. The Federal project number will appear on the following:
A. All appraisal correspondence (including a letter of transmittal, if used)
B. The Front Cover (7-EX-1)
C. Appraisal Title Page (7-EX-21)
D. Parcel Summary Page, if used (RW 7-4)
E. Appraisal Summary (RW 7-9)
F. Appraisal Maps
- True or False? A new Certificate of Appraiser is not required whenever a parcel appraisal is revised resulting in a change in value.
a. True
b. False
b. False
Answer 7.02.03.00 section E
This is executed by the Appraiser and by any other Agent who participated in preparing the appraisal. A new Certificate is required whenever a parcel appraisal is revised resulting in a change in value. See RW 7-6.
- True or False? Confirmation with sources such as brokers, closing agents, and lenders with direct knowledge of the transaction should be included in the comparable data pages and is adequate for verification and confirmation purposes.
a. True
b. False
a. True
Answer 7.02.03.00 section O
All reasonable attempts should be made to confirm the transaction with both the seller and the buyer. …
In these cases, confirmation with secondary sources such as brokers, closing agents, and lenders with direct knowledge of the transaction should be included.
Information solely obtained from the Assessor, Recorder, or private data services such as Costar,
FARES, and Multiple Listing Service is not adequate for verification and confirmation purposes.
- Which of the following are correct rounding practices?
a. From $500 to $2,500, to the nearest $25
b. From $2,501 to $100,000, to the nearest $50
c. From $2,501 to $100,000 to the nearest $100
d. Parcels exceeding $100,000, to the nearest $1500
c. From $2,501 to $100,000 to the nearest $100
Answer 7.02.11.00
All monetary appraisal calculations shall normally be carried accurately to the nearest cent without rounding of
figures or adjustment of unit values to yield rounded figures. The total appraised value is to be rounded as follows:
A. From $500 to $2,500, to the nearest $50.
B. From $2,501 to $100,000, to the nearest $100.
C. Parcels exceeding $100,000, to the nearest $1,000.
- The determination as to which parcel valuations are noncomplex rests with the Region/District. Which of the following is not among the criteria to be considered in making the determination?
a. There are not a lot of requirements to valuate
b. There is no serious question as to highest and best use
c. There is no substantial decrease in market value due to the presence of hazardous material/waste.
d. Substantial damages and benefits are not involved
a. There are not a lot of requirements to valuate
Answer 7.02.12.00
The determination as to which parcel valuations are noncomplex rests with the Region/District. Among the criteria to be considered in making the determination are:
A. There is no serious question as to highest and best use.
B. Adequate market data is available.
C. Substantial damages and benefits are not involved.
D. There is no substantial decrease in market value due to the presence of hazardous material/waste.
- A waiver valuation with a value estimate of $2,501 to $10,000 must include the following:
a. Certificate of Appraiser
b. Senior Review Certificate Form
c. Summary of Severance Damages and Benefits page
d. All of the above
b. Senior Review Certificate Form
Answer 7.02.13.02
In addition to the documentation mentioned in Section 7.02.13.00, a Waiver Valuation with a value estimate of
$2,501 to $10,000 must include the following:
• Waiver Valuation Title Page, Exhibit 7-EX-21A
• Senior Review Certificate Form - Waiver Valuation, Exhibit 7-EX-24B
• Certificate of Waiver Valuation, RW 7-6A
• Waiver Valuation, RW 7-15
• Photograph(s) of subject
• Index map (if available)
• Appraisal map
- Whenever feasible, a valuation of the minor remnant left in the after condition should be included in the acquisition appraisal if:
a. The excess parcel is not landlocked or so reduced in size or irregularly shaped as to be legally or economically incapable of independent development
b. Remnants exceed $5,000 in the after condition
c. The parcel is likely to have a value of $5,000 or less as an independent parcel or as plottage to an adjoining property
d. All of the above.
c. The parcel is likely to have a value of $5,000 or less as an independent parcel or as plottage to an adjoining property
Answer 7.03.04.01
NOTE: Whenever feasible, a valuation of the minor remnant left in the after condition should be included in the acquisition appraisal if: (1) the uneconomic remnant “is landlocked or so reduced in size or irregularly shaped as to be legally or economically incapable of independent development;” and (2) the uneconomic remnant is likely to have a value of $5,000 or less as an independent parcel or as plottage to an adjoining property. The valuation should be prepared in the appropriate excess land appraisal format and processed as a nominal value parcel (see
Section 7.14.00.00). The valuation amount is the VTA. See Section 7.03.07.00.
- True or False? Rental rates for all improved properties where the improvements are affected by the taking and rented unimproved properties shall be shown on the Appraisal Page.
a. True
b. False
a. True
Answer 7.03.08.00
Rental rates for all improved properties where the improvements are affected by the taking and rented unimproved properties shall be shown on the Appraisal Summary (RW 7-9).
