Final Exam Flashcards
Which of the following suggests a market transaction, rather than a legal transaction, that may require an appraisal?
Exercise of a purchase option
USPAP requires that prior sales of the subject property be considered when they have occurred
Within 3 years
One statistical technique looks for a “central tendency” among the sales. Which of the following would describe the most commonly found sales price in a neighborhood study?
Mode or modal sales price
The purpose of verifying a sale with a party to the transaction is to
Improve the reliability of your data
You are deriving a gross income multiplier in the appraisal of a 14 unit apartment building. Market data is as follows:
16 units sold for $1,200,000 with a gross income of $150,000.
12 units sold for $ 960,000 with a gross income of $120,000.
4 units sold for $ 480,000 with a gross income of $ 48,000.
What GRM is suggested for the property under appraisal?
8
Which of the following requires using a Hypothetical Condition, as defined in USPAP?
A prospective appraisal
The appraiser’s opinion of the highest and best use in a written appraisal is required
In all market value appraisals
Which of the following is not a characteristic of a perfect market?
Government plays a large role
An appraisal is being made of a good quality, 25-year old, three bedroom home. The appraiser locates three comparables that have similar square footage, numbers of rooms, and construction quality. After viewing and rating the comparables, a summary is made as follows:
Data Comparable #1 Comparable #2 Comparable #3
Price paid $295,000 $300,000 $350,000
Location Inferior Equal Superior
Lot size Larger than Smaller than Equal to
subject subject subject
Amenities & Equal to Superior to Superior to
Condition subject subject subject
Dollar Adjustments Indicated by Market Study
Location difference = $40,000
Lot size difference = $20,000
Amenities and condition difference = $15,000
Problem:
Relying upon the comparables and the adjustments indicated, which of the following would be the best value conclusion for the subject property?
$300,000
As used in appraisal, all cost estimates relate to
Typical costs on the date of value
Which of the value approaches is considered to be the most direct?
Sales comparison
Income levels, growth rate, value trends, demand/supply factors and employment stability describe some of the
Economic factors affecting neighborhood quality
An environmental study shows that nearby toxic wastes have affected the neighborhood market. What kind of loss in value might be experienced by the improved properties?
Economic or external obsolescence
Neighborhood information assists the appraiser in
All of the above
A 10-unit property has a gross income of $8,000 per month. What is its probable value if the appropriate annual GIM is 8.0, based on analysis of comparable sales?
$ 768,000
Which of the four agents of production is said to be entitled to the “surplus” of productivity?
Land
The Uniform Standards of Professional Appraisal Practice (USPAP)
All of the above
Legal and physical problems should be noted in the site inspection. Which of the following is most likely to constitute a physical problem?
Soil instability
Which of the following best describes a condominium?
A land or air space unit, plus an undivided interest in the common areas
Whether a Self-Contained, Summary, or Restricted Use appraisal report is used should depend upon all of the following except:
Which value approaches were used
The “ASA” designation offered by the American Society of Appraisers is associated with
Accredited Senior Appraiser
In adjusting a comparable sale, the appraiser should always
Adjust the sale to the subject
Of the four elements of value, which one needs purchasing power?
Transferability
Of the four methods of estimating cost, which is the one most often used by appraisers?
Comparative square foot method