Quiz Income Approach Ch 17-18

Question 1

“The criteria that enable an appraiser to form a meaningful, defensible conclusion about the final value opinion. Value indications are tested for the appropriateness of the approaches and adjustments applied, the accuracy of the data, and the quantity of evidence analyzed” is the definition of

Answer 1

Reconciliation criteria

Question 2

A property sold for $125,000. It had two 5-room apartments, one 4-room apartment and a 3-room studio apartment. What did it sell for per room?

Answer 2

7353

Question 3

According the definition of “appraisal” in USPAP, a value opinion must be numerically expressed as

Answer 3

A specific amount, A range of numbers, A relationship to a previous value opinion or numerical benchmark

Question 4

Adjustments for quality, condition and energy efficiency can be made in the _________ of the SRIPAR.

Answer 4

Sales comparison grid

Question 5

Adjustments to comparable sales should be made when there is ______________ difference between a sale and the subject property.

Answer 5

A significant, measurable

Question 6

If you determine that the best indication of value for a property is $46.00 per square foot and the square footage of the property is 2,462 SF, what is the indicated value of the property?

Answer 6

$113,252. $46 X 2,462 = $113,252

Question 7

In the current SRIPAR (Mar 05) unit indicators are developed from ___________ figures.

Answer 7

Both gross and adjusted

Question 8

In the current SRIPAR (Mar 05) you must reconcile a minimum of _______ value indicators.

Answer 8

7

Question 9

In the sales comparison reconciliation, how many sales should we have before we consider using a statistical analysis?

Answer 9

6 or more

Question 10

Income and value are _______ and move in the same direction.

Answer 10

Interdependent

Question 11

Ranking of the comparable sales in order of _________ makes a logical and persuasive argument.

Answer 11

Desirability

Question 12

Reconciliation takes place

Answer 12

Throughout the report

Question 13

STANDARD 1 of USPAP states: “In developing a real property appraisal, an appraiser must identify the problem to be solved, determine the scope of work necessary to solve the problem, and correctly complete research and analysis necessary to produce _________________.”

Answer 13

A credible appraisal

Question 14

Standards Rule 1-1(c) of USPAP says an appraiser must “not render appraisal services in __________________ manner…”

Answer 14

A careless or negligent

Question 15

The income approach is required by Fannie Mae for properties appraised on the ______________ form.

Answer 15

1025

Question 16

The most common definition of market value defines it as “the __________ price that a property __________ bring…”

Answer 16

Most probable, should

Question 17

The reconciliation is like a lawyer’s __________ to the jury.

Answer 17

Summation

Question 18

To obtain a higher net income you should choose a property that

Answer 18

Is energy efficient

Question 19

What does SRIPAR stand for?

Answer 19

Small Residential Income Property Appraisal Report

Question 20

What is the form number for the Fannie Mae SRIPAR form?

Answer 20

1025

Question 21

When analyzing comparable sales, pay more attention to adjustments made in the _____________ of the sales grid.

Answer 21

Upper part - transactional elements

Question 22

When we do a reconciliation of the sales comparison approach, what is the proper procedure?

Answer 22

Let the data fall wherever it does.

Question 23

When would you develop the income approach for a one-unit property appraisal reported on the URAR?

Answer 23

When the approach is necessary for credible assignment results

Question 24

Where do you address the strengths and weaknesses of each approach of the SRIPAR form?

Answer 24

In the Reconciliation section

Question 25

Which of the following are good procedures when making a reconciliation of sales data?

Answer 25

Be persuasive, Be succinct, Be direct

Question 26

Which of these is not a reason why we should expect differences in the adjusted sales process of comparable sales?

Answer 26

The real estate market is imperfect. We cannot always have access to 100% of the information we need. It is rare to find perfectly informed buyers and sellers, acting unemotionally.

Question 27

Which of these numbers would be appropriately rounded?

Answer 27

430000

Question 28

Which of these unit indicators was a new addition to the current version of the SRIPAR?

Answer 28

Sale price per bedroom

Question 29

Which technique is commonly used for estimating the value of small residential income properties?

Answer 29

Gross rent multiplier

Question 30

Which would be part of the review process of your final reconciliation?

Answer 30

Was the scope of work adequate, given the intended use and intended users? Were the steps logical? Were our data sources and methods of collection and verification adequate?

Question 31

The final reconciliation process consists of various items:

Answer 31

• Review
• Appropriateness
• Consistency
• Accuracy
• Relevance
• Quality of data
• Quantity of data