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Basic Appraisal Principles 1 > Principles Review > Flashcards

Principles Review Flashcards

1
Q

What is the term…

A

Real Estate

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2
Q

What is the acreage of a parcel described as N1/2 of the SE1/4 of the NE1/4?

640 x .5 x .25 x .25 =

A

20 Acres

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3
Q

A characteristic of a “Joint Tenancy Ownership” is?

A

Right of Survivorship

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4
Q

Which of the following is a “Factor of Value”?

A

Effective Purchasing Power

DUST

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5
Q

What is the annual debt mortgage of 300,000 paid monthly for 15 years at 8.5% ?

A

35,450

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6
Q

An encumbrance that is a financial claim against the property and can affect the transfer of title is referred to as

A

Lien

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7
Q

When performing valuation services, Appraisers have the responsibility for?

A

Protecting the Public Trust

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8
Q

What type of assignment contains an effective date in the past?

A

Retrospective

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9
Q

Which mortgage is a guaranteed loan?

A

VA

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10
Q

What amount must be deposited annually in an account earning 6% interest that compounds annually to accumulate 125,000 in 12 years?

A

7,409.63

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11
Q

A time and distance relationship between a particular use and supporting facilities, such as between residences and employment is called?

A

Linkage

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12
Q

What is the act or process of developing an opinion of value?

A

Appraisal

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13
Q

A local zoning ordinance that prohibits construction of a motel in a certain area of a municipality is an example of ?

A

Police Power

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14
Q

Seller concessions such as mortgage buydowns or gift inducements in the sale price?

A

Cash or Cash Equivalents

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15
Q

Buyers and Sellers trade short term money instruments in the ?

A

Money Market

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16
Q

A retail tenant has agreed to Lease…

The exterior walls are 1 foot thick…

There are 6 pillers that are 2 ft x 2ft…

A

6640

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17
Q

Real Estate sale prices are set by ?

A

Supply & Demand

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18
Q

What is an Amortized mortgage with a lump sum payment at the end ?

A

Balloon

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19
Q

From a statistical perspective building size, acreage, parking spaces, and rentable spaces are all examples of what kind of data ?

A

Quantitative Data

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20
Q

Township lines, Base lines, Range lines, and Tiers are terms commonly found in what method of legal description ?

A

Rectangular Survey

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21
Q

If Conventional Financing requires a 20% down payment and the prequalified borrower has 40,000 cash available, what is the maximum price the buyer can afford ?

A

200,000

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22
Q

A general lien that binds all the assets of an individual debtor to the lien including the debtors property is a ?

A

Judgement Lien

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23
Q

An example of an “Agent of Production” is ?

A

Land

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24
Q

What types of investors provide sources of capital for Real Estate markets?

A

Equity & Debt Financing

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25
Q

A factory is located in a city that assess at 75% of market value. The Mill rate for general taxes is 22 and the Mill rate for school taxes is 24. If the market value of the factory is 2.8 million, what is the effective tax rate?

A

3.45%

26
Q

What is the phenomenon in which middle and upper class people purchase and renovate properties in declining urban neighborhoods ?

A

Gentrification

27
Q

If an appraiser is unfamiliar with the geographic area involved in an appraisal assignment, the appraiser should ?

A

Insure the competency issue is satisfied by the end of the assignment

28
Q

Which principle states that value is created and sustained when the market forces are in “equilibrium” ?

A

Balance

29
Q

What are the interest, benefits, and rights inherit in the ownership of “Physical” Real Estate ?

A

Real Property

30
Q

Real Estate transferred to another person called a fiduciary, to hold or manage for the benefit of a third party is an example of a ?

A

Trust

31
Q

The concept that land cannot be valued on the basis of one use, while the improvements are valued on the basis of another use ?

A

Consistant Use

32
Q

A townhouse was sold for 172,500 which was 15% more than was paid for it some years back. What was the original purchase price ?

172,500 / 1.15 =

A

$150,000

33
Q

What is the monthly payment of a mortgage of 127,250 paid monthly for 20 years at 9.5% interest ?

A

$1,186.14

34
Q

What are the 4 stages in the life cycle of a neighborhood ?

A

Growth

Stability

Decline

Revitalization

35
Q

To satisfy competency, an appraiser does not need to be familiar with competency in ?

A

A clients “Affective Purchasing Power”

36
Q

In a government rectangular survey system, how many sections does a township contain ?

A

36 Sections

37
Q

What is the right of the government to take private property for public use upon the payment of just compensation ?

A

Eminent Domain

38
Q

What is the amount that a particular purchaser agrees to pay and a particular seller agrees to receive ?

A

Price

39
Q

What rate is used to express the price of money ?

A

Interest Rate

40
Q

A measure of central tendencies and statistics that is commonly referred to as a “Arithmetic Average” is called ?

A

Mean

41
Q

An example of a neighborhood characterized by homogeneous land use is best described as a ?

A

District

42
Q

Intended use, Intended user, Effective date, and Type of value are elements of problem identification that leads the appraiser in determining?

A

Scope of Work

43
Q

Cash equivalency in a market value appraisal, accounts for seller concessions by making adjustments to the ?

A

Comparable sales used in the appraisal

Comps

44
Q

A lease based on the landlord paying all the operating expenses ?

A

Gross Rental Lease

45
Q

Asbestos in a commercial building is an example of which “Force” that influences value ?

A

Environmental

G.E.S.E.

46
Q

A house has a market value of 220,000. If the municipality assess at 20% of value and the total tax rate is 151.36 per 1,000 How much are the taxes?

A

$6,659.84

47
Q

A group of complimentary land uses is a ?

A

Neighborhood

48
Q

Rights that include land, water, and anything attached to the land, either naturally or placed by human hands, are referred to as ?

A

Surface Rights

49
Q

Fee Simple estate and Life estate come under the general category of ?

A

Free Hold estates

50
Q

A corporation offering shares of stock to perspective tenants in real estate the entity owns, is an example of what type of ownership ?

A

Cooperative

Co-Op

51
Q

What economic concept is based on the process of exchange that is not a fact but rather an opinion of the “worth” of a property as of a specific time?

A

Value

52
Q

In testing for the highest & best use, what are the first two criteria that appraisers should apply ?

A

Legally Permissible & Physically Possible

53
Q

The Right of Possession, The Right to Transfer, and The Right to Lease, are components of the ownership interest known as ?

A

Bundle of Rights

54
Q

What is an “Easement in Gross” ?

A

Encumbrance

55
Q

A deed used to convey any interest held in a property to the grantee “Without” any warranty of title, is called ?

A

Quick Claim Deed

56
Q

How many acres are in a property measuring 100ft x 100ft

100 x100 = 10,000

10,000 / 43,560 =

A

.23 Acres

57
Q

The perception that value is created by the “Expectation” of benefits to be delivered in the “Future”, is an example of ?

A

Anticipation

58
Q

A partial of land measures 880ft x 792ft, if similar land is worth 22,500 per acre, what is the market value of the subject ?

880 x 792 = 696,960ft

696,960 / 43,560 = 16

16 x 22,500 =

A

$360,000

59
Q

A sellers property was listed for sale at 300,000 but the price was reduced to 282,000 due to a slow market condition, what is the percent of price reduction?

300,000 - 282,000 = 18,000

18,000 / 300,000 = .06

A

6%

60
Q

Which of the following is not a component of a valid contract?

A

Contingency Clause

Basic Appraisal Principles 1 (1 decks)

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