Quiz Sales Comparison Approach Ch 3-4

Question 1

___________ 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.

Answer 1

Leased fee

Question 2

“A business arrangement in which two or more persons jointly own a business and share in its profits and losses” is the definition of

Answer 2

Partnership

Question 3

“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

Answer 3

Cooperative

Question 4

“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

Answer 4

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)

Question 5

“A multiunit structure, or a unit within such a structure, with a condominium form of ownership “ is the definition of a

Answer 5

Condominium

Question 6

“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

Answer 6

Quantitative adjustments

Question 7

“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.

Answer 7

Relative comparison

(sometimes symbols like +- or = are used in the grid)

Question 8

“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.

Answer 8

Trend

Question 9

“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

Answer 9

Fee simple

Question 10

“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

Answer 10

Easement in gross

Question 11

“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

Answer 11

Corporation

Question 12

“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

Answer 12

Partial interest

Question 13

“In the sales comparison approach, the process of accounting for differences between comparables that are not quantified” is the definition of _________ analysis.

Answer 13

Qualitative

Question 14

“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

Answer 14

Graphic analysis

(with y and x axis and possibly a trend line)

Question 15

“The holding of property by any form of title” is the definition of

Answer 15

Tenancy

Question 16

“The order in which quantitative adjustments are applied to the sale prices of comparable properties” is the definition of

Answer 16

Sequence of adjustments

Question 17

“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.

Answer 17

Qualitative

Question 18

“The right to perform a specific act on a property owned by another” is the definition of

Answer 18

Affirmative easement

Question 19

“The right to use another’s land for a stated purpose” is the definition of

Answer 19

Easement

Question 20

“Trespassing on the domain of another” is the definition of

Answer 20

Encroachment

Question 21

“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

Answer 21

Fee simple estate

Question 22

“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)

Answer 22

Easement in gross

Question 23

“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

Answer 23

Partial interest

Question 24

“Trespassing on the domain of another” is the definition of

Answer 24

Encroachment

Question 25

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? 

Answer 25

5000. 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.

Question 26

A leasehold interest may have value when

Answer 26

The contract rent is less than market rent

Question 27

A limited partnership has 

Answer 27

Both general and limited partners

Question 28

A property sold for $225,000 and then sold 6 months later for $245,000. What was its average percentage of increase per month? 

Answer 28

1.5%. $245,000 ÷ $225,000 = 1.09 or 9%. 9% ÷ 6 = 1.5% per month.

Question 29

A property sold for $225,000 and then sold later in the same year for $207,000. What was its percentage of decline? 

Answer 29

8%. $225,000 ÷ $207,000 = 1.08 or 8%

Question 30

A property sold for $250,000 and then sold later in the same year for $237,000. What was its percentage of decline?

Answer 30

5.2%. 237,000 ÷ 250,000 = .948 or 94.8%. 1.00 - .948 = .052 or 5.2%

Question 31

A remainderman is found in a _________ interest.

Answer 31

Life

Question 32

A rent loss can be capitalized by 

Answer 32

Either dividing by a rate or multiplying by a multiplier

Question 33

A tenancy in severalty involves ____________ owner(s).

Answer 33

Only one

Question 34

An analysis technique in which nearly identical properties are analyzed to isolate a single characteristic's effect on value or rent is called

Answer 34

Paired data analysis

Question 35

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? 

Answer 35

Handle the difference through qualitative analysis

Question 36

An estate in severalty involves ____________ owner(s).

Answer 36

Only one

Question 37

An estate that is restricted to husband and wife only is called 

Answer 37

Tenancy by the entirety

Question 38

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? 

Answer 38

minus 4,000. $240,000 -$232,000 =$8,000 $8,000/200 SF = $40/SF 100 SF x $40 = minus $4,000

Question 39

Comparative analysis may employ 

Answer 39

Both quantitative and qualitative analysis separately or together

Question 40

Comparative analysis may employ quantitative analysis and qualitative analysis ____ __ ____.

Answer 40

Separately or together

Question 41

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. 

Answer 41

Quantitative, market’s

Question 42

In ranking analysis, the data is ranked in ____________ order. 

Answer 42

Ascending or descending

Question 43

In traditional appraisal theory, the first step in the adjustment sequence is an adjustment for

Answer 43

Real property rights appraised

Question 44

Qualitative analysis is used for elements that

Answer 44

Cannot be given a numerical value

Question 45

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? 

Answer 45

Stanley (the one who remains)

Question 46

Syndications are 

Answer 46

Either private or public partnerships

Question 47

The most desirable form of timesharing is called ___________ timesharing.

Answer 47

Fee

Question 48

The procedure in which we employ just plusses and minuses in sales comparison is called ______________ analysis.

Answer 48

Relative comparison

Question 49

The process by which a value indication is derived in the sales comparison approach is called

Answer 49

Comparative Analysis

Question 50

What is the sequence of Adjustments?

Answer 50

(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

Question 51

The sequence of adjustments is determined by the _______ and through analysis of the _______.

Answer 51

Market, data

Question 52

What is the name of the process by which a value indication is derived in the sales comparison approach? 

Answer 52

Comparative analysis

Question 53

When appraising a 4-unit property and at least one unit is leased, the property rights would be

Answer 53

Leased fee estate

Question 54

Which are forms of partial interest?

Answer 54

Life estate, Leased fee estate, Leasehold estate

Question 55

Which are forms of quantitative analysis? 

Answer 55

Paired data analysis, Graphic analysis, Cost analysis

Question 56

Which of the following are classified as negative easements?

Answer 56

Conservation easements, Drainage easements, Historic preservation easements

Question 57

Which of the following are forms of qualitative analysis?

Answer 57

Ranking analysis, Relative comparison analysis, Interviews

Question 58

Which of the following is TRUE, concerning quantitative analysis? 

Answer 58

It is based on numbers, It may result in a dollar amount, It may result in a percentage amount

Question 59

Which ownerships include a right of survivorship?

Answer 59

Joint tenancy and tenancy by the entirety

Question 60

Which statement is TRUE about syndications?

Answer 60

They can be either a private or public partnership.