Chapter 2 site valuation by the sales comparison method Flashcards
Compares the subject with recent sales
sales comparison
Subtracts estimated improvement value to arrive at land value
extraction
uses land to value ratios based on improved sales comparables
allocation
subtracts estimated development costs from discounted sale proceeds
subdivision development
divides up and capitalizes the income between land and improvements
land residual
capitalizes income from leased land
ground rent capitalization
most common method for valuing sites
sales comparison
adjustments may be made either on a dollar amount basis or on a percentage basis.
quanitative
The most commonly used method of site valuation is the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ method. Sales comparison Allocation Extraction Paired data
sales comparison
Which is a true statement regarding adjustments in the sales comparison method?
Quantitative adjustments must be made on a dollar amount basis.
Quantitative adjustments must be made on a percentage basis.
Quantitative adjustments may be made on either a dollar amount or a percentage basis.
Qualitative adjustments are typically made on a percentage basis.
Quantitative adjustments may be made on either a dollar amount or a percentage basis.
We should only adjust for items that are _____________.
Different, even if the difference is very small
More than 10%
Significant
Permanent
significant
Traffic by a site is always a negative factor.
True
False
false
how many ft in acre
43,560 sq ft
The steeper a site gets the
harder and more expensive it is to develop
Properties in a Special Flood Hazard area are those designated by FEMA as being in \_\_\_\_\_\_\_\_\_. Zone A only Zones A and V Zone C only Zones C and V
zones a and v
Nationwide Permits are required for projects impacting as little as \_\_\_\_\_\_ of wetlands. 1 acre 0.75 acre 0.5 acre 500 square feet
0.5 acre
If a lot contains 235,790 square feet, how many acres is that?
- 41
- 35
- 18
- 49
5.41
Corner locations are generally beneficial in which type of properties? Residential Industrial Commercial Condominium
commericial
Nationwide soils maps are available from the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. U.S. Fish and Wildlife Service FEMA National Soil Society Natural Resources Conservation Service
Natural Resources Conservation Service
\_\_\_\_\_\_\_\_\_\_\_\_ soils absorb water quickly and swell up, causing cracking. Expansive Progressive Expansion Explosive
expansive
Designing the size of septic systems is based on \_\_\_\_\_\_. Soil samples Bearing strength of the soil Percolation tests Soil maps
percolation tests
A lot is L-shaped and consists of two rectangles that measure 245.63 feet x 468.5 feet and 112.48 feet x 288.03 feet. What is the total area of the lot in square feet? 189,346.8 147,475.27 138,412.4 239,224.8
147,475.27
245.63 x 468.5 = 115,077.66 112.48 x 288.03 = 32,397.61. 115,077.66 + 32,397.61 = 147,475.27
Which agency is authorized to issue Nationwide Permits for filling or dredging wetland areas? FEMA EPA Army Corps of Engineers Federal Wetlands Agency
army corps of engineers
A percolation test measures the \_\_\_\_\_\_\_\_\_\_\_\_\_ of the soil. Stability Permeability Bearing strength Percability
permeability
Some areas of the country are still unzoned.
True
False
true
there is no dominant tenement or servient tenement. the property owner is prohibited from doing something with his or her property, but there is no specific property that benefits. examples would be conservation easements, historic preservation easements, or facade easements.
negative easements
An easement preventing a property owner from certain, otherwise permitted, uses of his or her land, e.g., agreeing not to do something such as building a wall or fence blocking an adjoining property’s view.
negative easement
The right to perform a specific act on a property owned by another
affirmative easement
A list of expressed assurances and limitations on land use; often found in contracts between a land subdivider and a lot purchaser. CC&Rs should be specified in the conveyance. Also referred to as covenants and restrictions or condominium covenants. See also restrictive covenant.
conditions, covenants and restrictions
A private agreement that restricts the use and occupancy of real estate that is part of a conveyance and is binding on all subsequent purchasers; may involve control of lot size, setback, placement of buildings, number and size of improvements, architecture, cost of improvements, or use. Generally associated with the conditions, covenants, and restrictions written into deeds and leases. By specifying the permissible uses in a neighborhood, restrictive covenants help stabilize property values.
restrictive covenant
A development right that cannot be used by the landowner, or that the owner chooses not to use, but can be conveyed to landowners in another location or leased for a period of years to then revert back to the original owner; TDRs are said to be transferred from a landowner in a sending district to the use of a landowner in a receiving district.
transferable development rights
An interest in real estate restricting future land use to preservation, conservation, wildlife habitat, or some combination of those uses. A conservation easement may permit farming, timber harvesting, or other uses of a rural nature as well as some types of conservation-oriented development to continue, subject to the easement.
conservation easement
When appraising land or sites, the most common units of comparison are:
Price per square foot Price per acre Price per front foot Price per lot Price per buildable unit Price per animal unit
Land that is not needed to serve or support the existing use. The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Excess land has the potential to be sold separately and is valued separately.
excess land
Land that is not currently needed to support the existing use but cannot be separated from the property and sold off for another use. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel.
surplus land
An interest in real property that conveys use, but not ownership, of a portion of an owner's property is a(an) \_\_\_\_\_\_\_\_. Encroachment Easement Deed restriction Tenancy in common
easement
Price per front foot is a common measure of comparison when appraising what type of properties? Waterfront and commercial Waterfront only Commercial and Industrial Commercial only
waterfront and commercial (those along major roadways)
Which would NOT be an example of a private restriction? Easement Zoning Land lease Transferable Development Right
zoning
The easiest site to develop is one that is \_\_\_\_\_\_. Gently sloping Tabletop level Terraced Steeply sloping
gently sloping
“A list of expressed assurances and limitations on land use, often found in contracts between a land subdivider and a lot purchaser” is the definition of \_\_\_\_\_\_. Transferable Development Right Conservation easement Lis Pendens CC&R
CC&R
The most commonly used land appraisal form
Is produced by Fannie Mae
Is a generic form
Is not available in most software programs
Does not use the sales comparison approach to value the property
is a generic form
Some areas of the country are still unzoned. Which statement is TRUE regarding the lack of zoning?
This is always an advantage for the property owner.
This is always a disadvantage for the property owner.
This may be either an advantage or a disadvantage, depending on the property type.
Lack of zoning in a municipality means that no development may take place there.
This may be either an advantage or a disadvantage, depending on the property type.
Wetlands Maps are available from \_\_\_\_\_\_\_\_. FEMA EPA Federal Wetlands Agency U.S. Fish and Wildlife Service
U.S. Fish and Wildlife Service
A property owner has a 4-acre site in an area where 1-acre sites are common. This additional land cannot be subdivided off and sold, and it is not capable of its own highest and best use. This is an example of: Excess land Surplus land Interim use Affirmative easement
surplus land
What type of soils absorb water quickly and swell up, causing cracking? Expansive Progressive Expansion Explosive
expansive
For residential properties, a large amount of traffic by a site is usually a \_\_\_\_\_\_\_ factor. Positive Negative Meaningless Non
negative
A residentially-zoned site could be appraised under the \_\_\_\_\_\_\_\_\_\_\_\_\_ that the zoning was commercial. Probability hypothesis Extraordinary assumption Hypothetical condition Opposite theory
hypothetical condition
