Quiz Sales Comparison Approach Ch 3-4 Flashcards
___________ interest is defined as the ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires.
Leased fee
“A business arrangement in which two or more persons jointly own a business and share in its profits and losses” is the definition of
Partnership
“A form of property ownership in which each unit owner holds stock in a cooperative apartment building or housing corporation. Stockholders receive a proprietary lease on a specific apartment and are obligated to pay a monthly maintenance charge that represents the proportionate share of operating expenses and debt service on any underlying mortgage, which is paid by the corporation. ” is the definition of
Cooperative
“A limitation that passes with the land regardless of the owner; usually limits the property’s type or intensity of use” is the definition of
Deed restriction. A deed restriction is a private restriction that limits a property’s use and is passed along with the ownership rights.
(Deed restriction limits an owner’s use.
Negative easements can only be conservation, drainage, historic, air rights, subsurface rights. All other easements are positive and give a right to perform)
“A multiunit structure, or a unit within such a structure, with a condominium form of ownership “ is the definition of a
Condominium
“A numerical (dollar or percentage) adjustment to the indicated value of a comparable property to account for the effect of a difference between two properties on value” is the definition of
Quantitative adjustments
“A qualitative technique for analyzing comparable sales; used to determine whether the characteristics of a comparable property are inferior, superior, or equal to those of the subject property” is the definition of _____________ analysis.
Relative comparison
(sometimes symbols like +- or = are used in the grid)
“A quantitative technique used to identify and measure trends in the sale prices of comparable properties; useful when sales data on highly comparable properties is lacking, but a broad database on properties with less similar characteristics is available. Market sensitivity is investigated by testing various factors that influence sale prices” is the definition of ___________ analysis.
Trend
“Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat” is the definition of
Fee simple
“An easement that benefits a legal person or entity (individual, corporation, partnership, LLC, government entity, etc.) and not a particular tract of land; an easement having a servient estate but no dominant estate” is the definition of an
Easement in gross
“An organization that acts as a single legal entity in performing certain activities, usually business for profit; also includes charitable, educational, and religious organizations” is the definition of
Corporation
“Divided or undivided rights in real estate that represent less than the whole, i.e., a fractional interest such as a tenancy in common, easement, or life interest” is the definition of
Partial interest
“In the sales comparison approach, the process of accounting for differences between comparables that are not quantified” is the definition of _________ analysis.
Qualitative
“Quantitative techniques used to identify and measure adjustments to the sale prices of comparable properties; a variant of statistical analysis in which an appraiser interprets graphically displayed data visually or through curve fit analysis” is the definition of
Graphic analysis
(with y and x axis and possibly a trend line)
“The holding of property by any form of title” is the definition of
Tenancy
“The order in which quantitative adjustments are applied to the sale prices of comparable properties” is the definition of
Sequence of adjustments
“The process of accounting for differences (such as between comparable properties and the subject property) that are not quantified; may be combined with quantitative analysis” is the definition of ____________ techniques.
Qualitative
“The right to perform a specific act on a property owned by another” is the definition of
Affirmative easement
“The right to use another’s land for a stated purpose” is the definition of
Easement
“Trespassing on the domain of another” is the definition of
Encroachment
“Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat” is the definition of
Fee simple estate
“An easement that benefits a legal person or entity (individual, corporation, partnership, LLC, government entity, etc.) and not a particular tract of land; an easement having a servient estate but no dominant estate” is the definition of a(an)
Easement in gross
“Divided or undivided rights in real estate that represent less than the whole, i.e., a fractional interest such as a tenancy in common, easement, or life interest” is the definition of
Partial interest
“Trespassing on the domain of another” is the definition of
Encroachment
A 1,900 square-foot home with a double garage sold for $210,000. A home very similar except it had 2,000 square feet of living area and only a single garage, recently sold for $208,000. It has been determined that the indicated adjustment for square feet of living area is $30.00 per square foot. Which is the indicated adjustment for the difference in garages?
- 2,000 SF - 1,900 SF = 100 SF difference. 100 SF X $30 = $3,000. $210,000 + $3,000 = $213,000. $213,000 - $208,000 = $5,000.
A leasehold interest may have value when
The contract rent is less than market rent
A limited partnership has
Both general and limited partners
A property sold for $225,000 and then sold 6 months later for $245,000. What was its average percentage of increase per month?
1.5%. $245,000 ÷ $225,000 = 1.09 or 9%. 9% ÷ 6 = 1.5% per month.
A property sold for $225,000 and then sold later in the same year for $207,000. What was its percentage of decline?
8%. $225,000 ÷ $207,000 = 1.08 or 8%
A property sold for $250,000 and then sold later in the same year for $237,000. What was its percentage of decline?
5.2%. 237,000 ÷ 250,000 = .948 or 94.8%. 1.00 - .948 = .052 or 5.2%
A remainderman is found in a _________ interest.
Life
A rent loss can be capitalized by
Either dividing by a rate or multiplying by a multiplier
A tenancy in severalty involves ____________ owner(s).
Only one
An analysis technique in which nearly identical properties are analyzed to isolate a single characteristic’s effect on value or rent is called
Paired data analysis
An appraiser identifies a value-related difference between the subject property and a comparable property in terms of remodeling, however the appraiser is unable to extract a specific dollar adjustment. What is the BEST course of action for the appraiser?
Handle the difference through qualitative analysis
An estate in severalty involves ____________ owner(s).
Only one
An estate that is restricted to husband and wife only is called
Tenancy by the entirety
Comparable A sells for $240,000 and contains 2,300 SF. Comparable B is similar in all aspects, except it contains 2,100 SF, and it sells for $232,000. If our subject property contains 2,200 square feet and Comparable A has 2,300 square feet; it would warrant an adjustment of how much to Comparable A?
minus 4,000.
$240,000
-$232,000
=$8,000
$8,000/200 SF = $40/SF
100 SF x $40 = minus $4,000
Comparative analysis may employ
Both quantitative and qualitative analysis separately or together
Comparative analysis may employ quantitative analysis and qualitative analysis ____ __ ____.
Separately or together
Fannie Mae says most appraisal forms require the appraiser to use a __________ sales comparison analysis in which he or she assigns a dollar value to reflect the _________ reaction to any features of the comparable sales that differ from those of the subject property.
Quantitative, market’s
In ranking analysis, the data is ranked in ____________ order.
Ascending or descending
In traditional appraisal theory, the first step in the adjustment sequence is an adjustment for
Real property rights appraised
Qualitative analysis is used for elements that
Cannot be given a numerical value
Stanley gives his mother, Pearl, a life estate to occupy Stanley’s home as long as Pearl’s sister Myrtle remains alive, after which possession of the property will revert back to Stanley. Who is the remainderman in this situation?
Stanley
(the one who remains)
Syndications are
Either private or public partnerships
The most desirable form of timesharing is called ___________ timesharing.
Fee
The procedure in which we employ just plusses and minuses in sales comparison is called ______________ analysis.
Relative comparison
The process by which a value indication is derived in the sales comparison approach is called
Comparative Analysis
What is the sequence of Adjustments?
(Pretty Freaking Cool Man Let’s Party):
P roperty rights conveyed
F inancing terms/Cash equivalency
C onditions of sale
E xpenditures made immediately after purchase
M arket conditions
L ocation
P hysical characteristics
The sequence of adjustments is determined by the _______ and through analysis of the _______.
Market, data
What is the name of the process by which a value indication is derived in the sales comparison approach?
Comparative analysis
When appraising a 4-unit property and at least one unit is leased, the property rights would be
Leased fee estate
Which are forms of partial interest?
Life estate, Leased fee estate, Leasehold estate
Which are forms of quantitative analysis?
Paired data analysis, Graphic analysis, Cost analysis
Which of the following are classified as negative easements?
Conservation easements, Drainage easements, Historic preservation easements
Which of the following are forms of qualitative analysis?
Ranking analysis, Relative comparison analysis, Interviews
Which of the following is TRUE, concerning quantitative analysis?
It is based on numbers, It may result in a dollar amount, It may result in a percentage amount
Which ownerships include a right of survivorship?
Joint tenancy and tenancy by the entirety
Which statement is TRUE about syndications?
They can be either a private or public partnership.
