Ch 10 Quiz Report Writing and Case Studies Flashcards
“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” is the definition of _______.
Gross Living Area
A comparable property has 3 units. Each unit has 5 rooms and 2 bedrooms and 850 square feet of GLA. The property has 2,880 square feet of GBA and sold for $212,000. What is the indicated sales price per square foot of GBA?
73.61. $212,000 divided by 2,880 = $73.61. We do not use GLA for this calculation; instead we use GBA. (Ch 10, Case Study 3)
A comparable property has 3 units. Each unit has 5 rooms and 2 bedrooms. The property has 2,880 square feet of GBA and sold for $212,000. What is the indicated sale price per bedroom?
35333
A comparable property has 3 units. Each unit has 5 rooms and 2 bedrooms. The property has 2,880 square feet of GBA and sold for $212,000. What is the indicated sale price per room?
- 5 rooms x 3 units = 15 rooms. $212,000 divided by 15 = $14,133. (Ch 10, Case Study 3)
A comparable property has 3 units. Each unit has 5 rooms and 2 bedrooms. The property has 2,880 square feet of GBA and sold for $212,000. What is the indicated sale price per unit?
70667
A purchaser of a single-family home is typically interested in _________ and a purchaser of a 2-4-family property is more interested in _________.
Amenities, income
A two-story building that contains 3 units measures 28 feet by 43 feet. Two of the units have 800 square feet of GLA each, and the other unit has 650 square feet of GLA. What is the GBA for this building?
- 28 x 43 x 2 stories = 2,408. This is the gross building area, which can be greater than the gross living area. (Ch 10, Fannie Mae: GBA)
A two-story building that contains 4 units measures 22 feet by 61 feet. Two of the units have 650 square feet of GLA each, and the other two units have 550 square feet of GLA each. What is the GBA for this building?
2684
A two-unit building measures 42 feet by 60 feet. There is an additional efficiency living unit in the basement, with 450 square feet. What is the GBA of this property?
2970
Basement units can be included in gross building area.
TRUE. Unlike Gross Living Area (GLA), basement areas can be included in GBA. However, unfinished basement areas should not be included in GBA. (Ch 10, Fannie Mae: GBA)
If a property has a gross monthly market rent of $1,750 and the indicated GRM is 88, what is the indicated value of the subject by income approach?
- $1,750 x 88 = $154,000. (Ch 10, Income Approach)
If an appraiser feels the unit indicators (sales price per room, sales price per unit, etc.) that were indicated on the 1025 form are not reliable for the subject property, he or she may simply ignore these indicators in the report.
FALSE. Simply ignoring these indicators in your reconciliation statement would not provide a summary of the information analyzed and the reasoning that supports the analyses, opinions, and conclusions. (Ch 10, Reconciliation of the Sales Comparison Approach)
The GBA of a multi-unit building is always equal to the sum of the GLAs of the individual rental units.
FALSE. It is entirely possible that the sum of the GLAs for the units does NOT equal the total GBA reported for the entire building. (Ch 10, Fannie Mae: GBA)
Unfinished basement areas should be included in gross building area.
FALSE
Value per square foot of GBA is always the most reliable unit of comparison when valuing small residential income properties.
FALSE
