Ch 19 Final Exam Flashcards
The federal financial institutions regulatory agencies directly involved in fair lending include all of the following EXCEPT
ASB
Eric pays $35,000 to have an inground swimming pool constructed in his back yard. When he sells the property, he only receives $10,000 more for his property than what similar property sold for without a pool. This is an example of the principle of
contribution
An appraisal is defined as the act or process of developing an ________ of _______.
opinion, value
You purchased a house two years ago for $190,000. It has appreciated an average of 3% per year since the time of purchase. What is its current value?
201571
A purchaser bought a property for $176,000, put 10% down and borrowed the rest at 6.5% interest for 25 years. The lender charged 1.75 points at the closing. How much was paid for the points?
2772
A problem with the real property market is that the amount of ________ is slow to change.
supply
Which statement about price, cost, and value is TRUE?
Price and value can be the same in some situations.
Under the current education criteria, an applicant for Appraiser Trainee must have completed ___ creditable class hours as specified in the required Core Curriculum Appendix.
75
The appraisal standards and qualification criteria promulgated by the boards of The Appraisal Foundation achieves legal authority by adoption, citation or implementation by
government agencies
A lot measures 178 feet by 464 feet. It sold for $80,000. What did it sell for per acre? HINT: Round the acreage amount to two decimal places.
42105
Which of the following would NOT be considered a governmental influence on value?
wage levels
_________ is a computerized mapping system for encoding, retrieving, analyzing and presenting geographic or spatial data.
GIS
The Uniform Commercial Code covers the sale of goods over $________.
500
You apply for a mortgage. The lender will allow you to spend up to 28% of your annual income for housing costs, including your mortgage, property taxes, and insurance. Your income is $1,472 every two weeks. If you apply for the loan, how much can your maximum monthly payment be?
893.01
Which of the following would be private restrictions on property rights?
deed restriction and mechanic’s lien
Low interest rates encourage __________, while high interest rates encourage _________.
borrowing, saving
In the 1970s, who developed uniform rules for mortgage underwriting?
Fannie Mae and Freddie Mac
What is the median of these numbers: 19, 11, 64, 36, 81, 22, 35, 95?
35.5
“The study of the economics of individual spheres of activity or patterns and behaviors, e.g., a firm, an industry, a retail market, a consumer segment, pricing, local employment” is the definition of
microeconomics
A lot measures 569.32 feet by 414.90 feet. How many acres is that?
5.42
Forty percent of the houses in a neighborhood are Colonials and 18% are Cape Cods. There are a total of 200 houses. How many are Cape Cods?
36
An appraiser pays a fee for the procurement of an assignment. Where in the appraisal report does this payment have to be disclosed?
in the certification and transmittal letter where conclusions are stated
Your property, which consists of a house and lot, is valued at $244,000. You want to insure it for 80% of value and the annual insurance premium will cost $5.75 per thousand. How much will your insurance cost per month?
93.53
“The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease“ is the definition of
leasehold estate
You bought a property for $650,000, 2 years ago. Values increased in that area by 8% the first year and 6% the second year. How much is your property worth today?
744120
The oldest system of legal descriptions for real estate is:
metes and bounds
The government uses the process of condemnation to carry out its power of
eminent domain. Eminent domain allows private land to be taken for the public good; with just compensation.
Demand analysis in a market indicates that 15 houses per month can be sold in the market. There are currently 180 houses for sale in this market. How many months’ inventory does this represent?
12
A property is owned as tenancy in severalty. How many owners are there?
1
Which of the following is a characteristic of an effective market?
all of the above (prices relatively low, supply and demand operate freely, buyers and sellers act rationally)
You purchased a house for $120,000, three years ago. Property values increased 3% the first year, 5%, the second year, and 7% the third year. How much is your house worth now?
138865
What is a corporation or trust that functions like a mutual fund for real estate, by combining the capital of many investors to acquire real estate?
REIT
All of the following would typically be considered to be personal property EXCEPT
wall to wall carpeting
The Management Section of the ETHICS RULE states, in part, “An appraiser must __________ that he or she paid a fee or commission, or gave a thing of value in connection with the procurement of an assignment.”
disclose
Which is NOT a characteristic of tenancy in common?
there is a right of survivorship
What is the mean of the following set of gross rent multipliers? (95, 93, 120, 94, 93, 129)
104
All of the following could lead to a non-arm’s-length transaction EXCEPT
knowledgeable buyer and seller
“The act of transferring an interest in property or some right (such as contract benefits) to another” is the definition of
assignment
A homeowner fears the construction of a factory nearby will decrease the value of her property. This illustrates the principle of
externalities
Here are all the sales in your area in the last 4 months. They sold for: $178,500; $166,000; $172,750; $182,000; $168,000; $174,000; $176,000; $184,000; $170,000; $175,000; $172,000; $181,500. What is the mean sale price?
174979
When appraising an income producing property, you have the following GRMs indicated from comparable sales (122, 159, 132, 126, 122, 173, 152, 126). What is the mode of the GRMs?
122, 126 (bi-modal)
Which is NOT a requirement of a valid deed?
must be recorded
“The right to construct and maintain tunnels, subways, subcellars, pipelines, sewers, etc.” is the definition of _________ rights.
subsurface
An appraisal is best described as
an opinion of value
You want to buy a house for $216,500. You can get a loan for 90% of value. You will also have to pay 1.5 points on the loan. If you have to pay both the down payment and the loan points at closing, how much will you have to deliver to closing to cover these?
24572.75
“In appraisal, the concept that a higher-priced property will be worth less in a lower-priced neighborhood than it would in a neighborhood of comparable properties” is the definition of the principle of
regression
Which of the following would NOT be considered a negative easement?
access right of way
The ETHICS RULE of USPAP is the ________ of five Rules in USPAP.
first
A facade easement is a type of_______________ easement.
historic preservation
Property Owner A has the right to develop his property into 10 lots. He sells this right to nearby Property Owner B who wishes to develop his property into additional lots. This is an example of
transferable development rights
Short term money instruments are traded on the
money market
Which would NOT be considered factors in supply analysis?
employment rates
“The price expected for a whole property, e.g., a house, or a part of a property, e.g., a plumbing fixture, that is removed from the premises usually for use elsewhere” is the definition of ____________ value.
salvage
In a particular market, there is a demand for 500 houses per year, and there are currently 1,500 houses for sale. What does this most likely indicate?
there is a three-year supply of homes currently for sale
As part of the overall requirement for continuing education, certified and licensed appraisers must complete the 7-Hour National USPAP Update Course or its equivalent ________ calendar year(s).
every 2
A market analysis examines ____________ , where a marketability analysis examines ______________.
a type of property, a specific property
The federal financial institutions regulatory agencies directly involved in fair lending include all of the following EXCEPT
Fannie Mae
A property has a first mortgage of $100,000, a second mortgage of $20,000, and a third mortgage of $10,000. It is foreclosed and sold for $125,000. The holder of the third mortgage gets ________ and the holder of the second mortgage receives _________.
$5,000, $20,000
What is the median of these numbers: 17, 12, 54, 36, 71, 28, 31, 55?
33.5
You have found comparable sales of rural land parcels that indicate the following sale prices per acre: ($930, $775, $1202, $995, $1612, $906). What is the mode of these indications?
there is no mode
Normally the first step in highest and best use analysis is to research the uses that are
legally permissible
65% of the houses in a neighborhood are split levels and 15% are ranches. There are a total of 300 houses. How many are ranches?
45
The nationally-recognized ethical and performance standards for appraisers are known as
USPAP
The appraisal standards and qualification criteria that are published by The Appraisal Foundation achieve legal authority by adoption, citation or implementation by
government agencies with the power to regulate or administrate
“The party or parties who engage, by employment or contract, an appraiser in a specific assignment” is the definition of
client
When estimating the value of a fireplace in a single-family home, the most important principle is the principle of
contribution
When comparing printers, make sure to compare the cost per
printed page
Which of the following is NOT a characteristic of land?
mobility
A rectangular property measures 320 feet by 574.45 feet, and it sold for $263,750. How much did it sell for per acre?
62500
The ______ maintains a National Registry of appraisers.
ASC
You have found comparable sales of rural land parcels that indicate the following sale prices per acre: ($930, $775, $1202, $995, $1612, $906). What is the median of these indications?
962.5
The principle of highest and best use applies to
both vacant land and improved property
Unfortunately, with real property, the ______ side of the equation is relatively fixed and slow to change whereas the ______ side of the equation can change quickly.
supply, demand
The four components of the Appraiser Qualification Criteria are:
qualifying education, examination, experience, continuing education
For real property, a personal, unassignable, and typically revocable privilege or permit to perform some activity on the land of another without obtaining an interest in the property
license
