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Appraiser Trainee Exam > Math Questions *Vomit* > Flashcards

Math Questions *Vomit* Flashcards

1
Q

A property sold for $200,000. The reproduction cost of the building was $240,000 and its estimated deprecation was 75%. By extraction, what is the value of the land?

A

$140,000

Extraction method:
land value= Total sale price- depreciation & improvements

240,000 (replacement cost) x 0.25 = 60,000

200,000 - 60,000 = 140,000

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2
Q

If a property has a ground rent of $75,000 per year, which is market rent, and the appropriate capitalization rate is 11%, what is the value of the land, by the ground rent capitalization method?

A

$681,818

Land value = ground rent / capitalization rate

75,000 / 0.11 = 681,888

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3
Q

You examine a construction contract to build a 2,388 square foot house. The total cost is $305,850, including site improvements. The site improvements cost $16,000. How much is the indicated cost per square foot of the improvements?

A

$121.38

(cost-improvements) / sq footage

305,850 - 16,000 = 289,850

289,850 / 2,388 = 121.378
Rounded: 121.38

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4
Q

A house contains 2,826 square feet. It was constructed in 1995 at a cost of $54.18 per SF.
The cost index at that time was 193.4.
The cost index today is 286.3.
What is the estimated cost to build the building today?

A

$226,607

New cost index / old cost index
286.3 / 193.4 = 1.48

Sq Ft x Price per Sq Ft
2,826 x 54.18 = 153,113

Cost / our new cost index
153,113 x 1.48 = 226,607

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5
Q

A house would rent for $1,000 per month if it had air conditioning. Without air conditioning, it can only rent for $960. The appropriate GRM for that type property is 110. What is the amount of functional obsolescence?

A

$4,400

rent w conditioner - rent w/o conditioner
1,000 - 960 = 40

Rent difference x GRM
40 x 110 = 4,400

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6
Q

The house you are appraising has a total replacement cost new of $214,552. It is 15 years old and has an estimated remaining economic life of 45 years. The cost to cure deferred maintenance items is $825. Short lived items have been identified totaling $34,400. What is the amount of long-lived depreciation attributable to the building?

A

$44,832

Find total economic life
45 (remaining life) + 15 (effective age) = 60

Depreciation = effective age/ total economic life
15/60 = .25

cost new - deferred maintenance - short lived items
214,552 - 825 - 34,400 = 179,327

Remaining value x depreciation
179,327 x .25 = 44,831.75
Rounded: 44,832

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7
Q

The house you are appraising has a total cost new of $214,552. It is 15 years old and has an estimated remaining economic life of 45 years. The cost to cure deferred maintenance items is $825. Short lived items of depreciation have been identified totaling $8,600. What is the amount of long-lived depreciation attributable to the building?

A

$51,281.75

Find total economic life
45+15 = 60

Depreciation
15/60 = .25

cost new - deferred maintenance - short lived items

214,552 - 825 - 8600 = 205,127

205,127 x .25 = 51,281.75

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8
Q

You calculate the following gross rent multipliers for comparable properties: 121.2, 105.3, 111.2, 150.1, 108.3, 105.3, 109.8, 108.8. What is the mode of the GRMs?

A

105.3

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9
Q

**** issue*A building was constructed in July 2000 for $754,200. The cost index at that time was 133.6. The current cost index is 201.8. What is the indicated cost new of the building today?

A

$1,138,842

201.8/133.6 = 1.51

754,200 x 1.15

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10
Q 
You examine a construction contract to build a 2,448 square foot house and the total cost is $197,450. What was the cost per square foot?
$78.42
$80.66
$84.55
$86.14
A

$80.66

197,450/2448

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11
Q

If a property is assessed at $134,000 and the rate per thousand is $9.55, how much are total property taxes?

A

$1,279.70

134,000 x 0.00955

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12
Q

A single unit residence sold for $126,000. It was rented for $1,100 per month but the market rent was $1,200. What is the GRM indicated by this sale?

A

105.0

price sold / market rent = GRM

126,000 / 1200

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13
Q

A property sold for $2,350,000. The net operating income was verified as $294,640. The capitalization rate indicated by sale is ____%.

  1. 4
  2. 5
  3. 9
  4. 2
A

12.5

NOI / PRICE SOLD

294,640 / 2,350,000 = 12.5

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14
Q

A property has a cost new of $350,000. It has an effective age of 20 years and a total expected economic life of 65 years. There are curable items totaling $45,000. If they are cured, it will reduce the effective age to 15 years. What is the value of the improvements on a modified age-­life basis, before including the site value?

$104,537
$186,635
$227,024
$234,545

A

$234,545

effective age/total economic life = depreciation
15/65 = 0.2307

350,000(cost new) - 45,000 (curable items) = 305,000

305,000 x 0.2307 = 70,455 (depreciated value)

305,000 - 70,455 = 234,545 (Value of the improvements)

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15
Q

The subject is a 15 year old duplex that would cost $240,000 to build new today. It is in good condition and you estimate the effective age to be 10 years. Your estimate of total economic life is 50 years. Its land value is $60,000. What is its value by the cost approach?

A

$252,000

Value = Cost new - depreciation + land value

depreciation percentage = effective age/total economic life
10/50 = .20

cost new x depreciation percentage = depreciated value
240,000 x .20 = 48,000

cost new - depreciation + land value

240,000 - 48,000 = 60,000 = 252,000

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16
Q

Condos in your market area sold for a median price of $195,320 twelve months ago and the median price of condos for the current month is $219,540. What is the percentage of change in market conditions?

  1. 0%
  2. 2%
  3. 5%
  4. 4%
A

12.4%

percent change = current price / old price

219,540 / 195,320 = 1.124

OR an increase of 12.4%

17
Q

A municipality assesses property at 100% of value. If a property is assessed at $186,000 and the rate per thousand is $6.45, how much are total property taxes?

A

$316,400

cost approach formula
value = cost - depreciation + land value

295,000 x .08 = 23,600 (depreciated value)

295,000 - 23,600 + 45,000 = 316,400

18
Q

A house is rented for $1,050 per month, but lacks air conditioning. Comparable houses with air conditioning, rent for $1,100 per month. The appropriate gross rent multiplier is 75. By the capitalized value method, how much is the depreciation attributable to the lack of air conditioning?

A

$3,750

Capitalization value method

Rent of houses with air - Rent of houses w/o air
1,100 -1,050 = 50

Rent difference x GRM
50 x 75 = 3,750

19
Q

An old gas station on a good corner location in a desirable older neighborhood recently sold for $375,000. The reproduction cost of the improvements today would be $350,000 and the total depreciation is estimated to be 80%. What is the land value?

A

$305,000

Extraction method
$350,000 X .2 = $70,000 (current building value).

$375,000 - $70,000 = $305,000 (land value).

20
Q

You calculate the following gross rent multipliers for comparable properties: 121.2, 105.3, 111.2, 150.1, 108.3, 105.3, 109.8, 108.8. What is the range of the GRMs?

A

44.8

21
Q

You examine a construction contract to build a 2,448 square foot house and the total cost is $197,450. What was the cost per square foot?

A

$80.66

197,450/2448

22
Q

An 8-unit apartment building has 5 units rented at $850 per month and 3 units rented at $925 per month. What is its gross income?

A

$84,300

5 x 850 x 12 = total 1
3 x 925 x 12 = total 2
total 1 + total 2 = answer

23
Q

When developing an appraisal, you calculate the following GRMs for comparable properties: 94.3, 90.1, 95.6, 109.2, 84.5, 100.7, 99.9. What is the range of the GRMs?

A

24.7

24
Q

A comparable sale of a new house just sold for $640,000. You estimate the value of the site at $120,000 and the cost of the site improvements at $18,000. It has 2,940 square feet of GLA. What is its unit cost?

A

$170.75

640,000 - 120,000 - 18,000 = 502,000

502,000 / 2,940 = 170.75

25
Q

A building was constructed in July 2000 for $654,200. The cost index at that time was 138.5. The current cost index is 221.8. What is the indicated reproduction cost of the building today?

A

$1,046,720

221.8 / 138.5 = 1.6

654,200 x 1.6 = 1,046,720

26
Q

A building was constructed in July 2000 for $654,200. The cost index at that time was 138.5. The current cost index is 221.8. What is the indicated reproduction cost of the building today?

A

$1,046,720

221.8 / 138.5 = 1.6

654,200 x 1.6 = 1,046,720

27
Q

A building was constructed in July 2000 for $754,200. The cost index at that time was 133.6. The current cost index is 201.8. What is the indicated cost new of the building today?

A

$1,138,842

201.8 / 133.6 = 1.51

754,200 x 1.51 = 1,138,842

28
Q

A property sold for $2,350,000. The net operating income was verified as $294,640. The capitalization rate indicated by sale is ____%.

A

12.5%

294,640 / 2,350,000

29
Q

If a property is assessed at $134,000 and the rate per thousand is $9.55, how much are total property taxes?

A

$1,279.70

134,000 x 0.00955

30
Q

When developing an appraisal, you calculate the following GRMs for comparable properties: 94.3, 90.1, 95.6, 109.2, 84.5, 100.7, 99.9. What is the mean of the GRMs?

A

96.3

31
Q 
A house has a total cost new of $212,340. It is 12 years old and has an estimated remaining economic life of 38 years. The cost to cure deferred maintenance items is $670. Short lived items Cost is $20,000 and depreciation on the short lived items has been identified totaling $4,850. What is the amount of long-lived depreciation attributable to the building?
$1,489
$23,691
$31,653
$46,000
A

$46,000

12 + 38 = 50 years total economic life.
Determine Cost of Long-lived Items by subtracting deferred maintenance and short lived items Cost from total replacement cost: $212,340 - $670 - $20,000 = $191,670.
Determine depreciation percentage by diving effective life by total economic life: 12 / (12 + 38 = 50) = 24%. Multiply the Cost of the Long-Lived Items by the depreciation percentage: $191,760 X 24% = $46,000.

32
Q

A property has a cost new of $350,000. It has an effective age of 20 years and a total expected economic life of 65 years. There are curable items totaling $45,000. If they are cured, it will reduce the effective age to 15 years. What is the value of the improvements on a modified age-­life basis, before including the site value?

$104,537
$186,635
$227,024
$234,545

A

$234,545

Modified Age-Life Method. $350,000 - $45,000 = $305,000.
15 ÷ 65 = .231 or 23.1%. $305,000 X .231 = $70,455. $305,000 - $70,455 = $234,545.

33
Q 
A property sold for $200,000. There was a $20,000 down payment and the rest was in the form of a 30-year mortgage at 6% interest. The seller paid 3 points at the closing. How much was that?
$540
$3,000
$5,400
$6,000
A

$5,400

Points.
$200,000 - $20,000 = $180,000.

$180,000 X .03 = $5,400.

34
Q

A single unit residence sold for $126,000. It was rented for $1,100 per month but the market rent was $1,200. What is the GRM indicated by this sale?

  1. 1
  2. 6
  3. 0
  4. 5
A

105.0

126,000 / 1,200 = 105

35
Q 
A dwelling has a reproduction cost of $625,000. It is 10 years old and has an effective age of 12. Its remaining economic life is estimated to be 48 years. What is the depreciated value of the improvements by the age-­life method, before including the site value?
$500,000
$520,833
$525,000
$533,333
A

$500,000

10/48 = .2

625,000 x .20 = 125,000

625,000 - 125,000

Appraiser Trainee Exam (3 decks)

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