Chapter 2 Flashcards
Data that relates to the four forces that affect real property values—social, economic, governmental, and environmental forces.
General Data
This type of data is usually not specific to any particular property but is applicable in many assignments of similar types of properties. Also known as
Macro-Level Data
General data concerns influences that are a little further ________ from a subject property.
Removed
General data tends to influence all properties in an area ________
Equally
_______ interest rates or ________rates would tend to have an equal impact on properties in a region or market area. They are important in driving trends in general; however, when comparing two nearby properties the effects tend to cancel out as they have _______ influence.
Mortgage; unemployment; equal
The four main categories of external influences
social, economic, governmental, and environmental
______and more _______ influences exert the greatest pressure relating to the hierarchy of external forces
Closer; proximate
Details about the property being appraised, comparable sale and rental properties, and relevant local market characteristics.
Specific Data
______ _____ is more direct and applies specifically to the subject of your appraisal assignment.
Specific Data
Sources of general data will vary from ____ to _____
area to area
_______ data sources are found on all levels of _______: national, state, county, and local.
government; government
This site is the portal to more than 200 federal agencies. If you want information but you’re not sure where to find it - this is a good starting point. For example, you could enter the phrase “inflation” in the search box at the top and be directed to the appropriate federal government web sites that would have information on that topic.
www.usa.gov
This website provides information used to analyze the economy.
They do provide statistics and analysis on an international, national and regional basis.
Bureau of Economic Analysis
www.bea.gov
Website for the department of housing and urban development
www.HUD.gov
This is a website portal that can take you to information provided by over 100 federal agencies.
Fed Stats
https://nces.ed.gov/FCSM/index.asp
This trade association does extensive research on current construction trends and figures.
National Association of Homebuilders (NAHB)
a trade association for real estate agents and brokers who subscribe to a code of ethics. They have timely information on governmental activities, technology, and consumer preferences.
National Association of Realtors
There are more that ___ professional appraisal organizations. These also cater primarily to their own _______, but do offer some limited reports and information free on their websites. Of course, this information is intended strictly for the _______community. They offer guidance for appraisers.
10; members; appraisal
The largest of the professional appraisal organizations
The Appraisal Institute
A great resource for information concerning construction trends. They keep track of building starts in all areas.
National Association of Homebuilders
NAHB
An independent subsidiary of NAHB that does research and provides lots of information on cutting-edge building materials, including sustainable (i.e., “green”) building materials and methods.
Home Innovation Research Labs
Offers rotating topics daily about realtors
Realtor.org
Local ______ _______ can also be fruitful information sources. They are constantly studying trends in local market areas.
They are vitally interested in future growth trends. Their livelihood and profitability depend on it. They want to know:
-Are populations growing or shrinking?
-At what rates?
-What will the population be in two years? Five years? Ten years?
Utility Companies
______ ______are just as desirous of ascertaining future trends as utility companies. They need to project future student populations.
If they project 7,500 new residents in the next five years and 12% of them will be school age children, they know they will need more space.
School Districts
Many _________ conduct studies on a regular basis. Part of this might be as a learning process for students in various disciplines such as economics, urban planning or government studies.
universities
Every state has a ________ _ ___________. They study traffic patterns and are again involved with trying to predict patterns for the future. Where will the growth be for residences, commercial, and industrial properties?
Department of Transportation
These agencies are on a regional level and some are on a county or local governmental basis. members may be appointed to a planning board or planning commission. They may meet on a regular or irregular basis. They have to likewise plan for the future and the future good of the community.
Planning Agencies
The ostensible purpose of this organization is to provide information about a locale. They may be a _______ __ ________ for a town, village, county, region, or state.
Chamber of Commerce
This service provides the best source of information on residential real estate sales. Virtually all of these systems are internet-based. In many cases their data is updated in real time. As such, it is possible to perform very fast computerized searches according to specified parameters.
Multiple Listing Services (MLS)
Many of these systems also routinely print monthly or quarterly and annual surveys that provide median or average sales prices for various types of properties. Also it is possible to obtain information concerning marketing times, seller concessions, and/or sale price trends.
Multiple Listing Services
MLS
Even though appraisers can gain access to this information (typically for a fee), appraisers are not the primary intended users of ____. This information and data is generally formatted in a manner that is more useful for real estate agents and brokers.
Multiple Listing Services
MLS
Which influences typically exert the greatest pressure on property values?
local influences
national influences
international influences
all influences are equal
Local Influences
When completing an appraisal assignment, comparable sales information that the appraiser gathers would be considered _________ data.
secondary
general
specific
economic
Specific
True or False: Government data sources for general data are found on a national level only.
False
Information on employment and unemployment trends in an area would be considered
general data
specific data
governmental data
unimportant when appraising a single-family residence
General Data
________ ____ is collected to key in on one particular property and see what value creating forces are at play. We need to examine our subject property and see what makes it tick. What about its particular lot, buildings, location, etc.?
Specific Data
One of the prime sources of specific data about a property is the _____.
Deed
A deed will provide you with:
The legal description of the property The owners of record Easements of record Deed restrictions Chain of title (when the property was purchased and from whom)
______ will be filed at the appropriate municipal office. Typically, it’s the county courthouse. You can always go there and obtain a copy; however more and more county deed records are being made available on line, which may save you time and effort. In many cases, you will be able to view and print out a copy of the subject property deed without leaving your desk.
Deeds
It is common in appraisal reports to include a ___ that shows the location of the subject property and the comparable sales. You can photocopy a section from a highway map or utilize various internet-based ______ services.
map; mapping
________ maps may be employed when appraising vacant land or when the topography of the property is of particular concern.
Topographic
Here is where we can get topographic maps of any location in all 50 states.
Topozone
www.trails.com
Each municipality has ____ maps. These are prepared and maintained by the assessor’s office. In some locations, these maps are organized on a county level.
They show each individual ___ parcel on a map.
tax; tax
______ maps are prepared by the Federal Emergency Management Agency (FEMA). They detail areas that are prone to periodic flooding.
Flood
If a property lies in a ______ _____ ________ ____ (____) as designated by FEMA, the property cannot be mortgaged unless the property owner procures flood insurance. When an appraisal is done, the appraiser is usually asked to state whether or not the subject property, or any part of it, lies in a ______ _____ ______ ____
Special Flood Hazard Area (SFHA); Special Flood Hazard Area
FEMA maps are vague in some areas, and sometimes it is hard to determine whether a property is in or out of a _____ zone, even after looking at the map.
flood
Property ________ is part of the necessary research when obtaining specific data about a property.
zoning
The first step is to locate the property on the map and see which particular ___1___ it is in. The maps typically will have areas carrying designations such as B1 or R-2. Once you know which ____2____ the property is in, then you can read the ____3____ ordinance to discover the requirements and restrictions in that particular __4___.
- zone
- zone
- zoning
- zone
The ______ _______ is the document that details the permitted uses in each zone. It is just as important as the zoning map.
Zoning Ordinance
The ______1_______also will stipulate the _____2____ lot size for a particular zone. Usually there will be additional details such as minimum setback __3_____. For example, a structure may not be built closer than 15 feet from a side property line and 20 feet from a rear property line. There also may be restrictions on the height of buildings.
- zoning ordinance
- minimum
- requirements
These can be a valuable sources of general data. They can also be utilized to obtain specific data about a subject property or comparable sales.
Multiple Listing Services
Drawbacks of Multiple Listing Services
- Inaccurate/misleading information
2. Concentration on single family residences
Which zones are identified by FEMA as Special Flood Hazard Areas?
zones A and D
zones A and V
zones Z and W
zones A, B, and C
zones A and V
It is important for an appraiser to research and understand what when doing an appraisal?
the zoning map
the zoning ordinance
both the zoning map and the ordinance
both the zoning map and the ordinance
FEMA stands for
Federated Environmental Marshlands Association
Federal Endangered species Monitoring Agency
Forest, Elevated, or Mountainous Area
Federal Emergency Management Agency
Federal Emergency Management Agency
In residential mortgage lending appraisals, it is more common for lenders and AMCs to ask for _________ maps to be included in appraisal reports.
road
demographic
aerial
toxic hazard
Aerial
The zoning of a property is _____________ data.
specific
general
either specific or general
demographic
specific
Which of these is the best source for traffic count information?
Chamber of Commerce
Department of Energy
Department of Environmental Conservation
Department of Transportation
Department of Transportation
BEA stands for
Board of Economic Advisors
Bureau of Economy Advisors
British Educational Academics
Bureau of Economic Analysis
Bureau of Economic Analysis
Comparable sale and rental properties would be considered ________ data.
general
specific
prime
demographic
Specific
Which would NOT be considered a source for specific data?
title companies
flood maps
U.S. Census Bureau
tax maps
U.S. Census Bureau
Which would NOT be a possible source of general data?
trade association
university
deed
department of transportation
Deed
“Data that relates to the four forces that affect real property values—social, economic, governmental, and environmental forces. This type of data is usually not specific to any particular property but is applicable in many assignments of similar types of properties. Also known as macro-level data” is the definition of
market data
specialized data
generalized data
general data
General Data
The external forces that exert the most pressure are generally at the __________level.
neighborhood
state
national
international
Neighborhood
Which of these organizations is responsible for preparing flood maps for U.S. communities?
FEMA
HUD
Fannie Mae
NAHB
FEMA
Local and regional multiple listing services typically concentrate on ____________ properties.
2-4 unit
Commercial
Vacant land
Single unit residential
Single Unit Residential
The Google web site can give you _________ maps.
street maps only
aerial maps only
underground mining maps only
both street maps and aerial maps
Both street maps and aerial maps
Who is the primary intended user for MLS information?
appraisers
agents and brokers
buyers and sellers
tax assessing bodies
Agents and brokers
The largest repository of demographic information in the U.S. is the
Bureau of Labor statistics
Department of Interior
Bureau of Economic Indicators
Census Bureau
Census Bureau
