The Appraisal Profession II Flashcards by Erica G. Plant

Short term money instruments are traded on the

money market

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When appraising an income producing property, you have the following GRMs indicated from comparable sales (122, 159, 132, 126, 122, 173, 152, 126). What is the mode of the GRMs?

122, 126 (bi-modal)

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A rectangular property measures 320 feet by 574.45 feet, and it sold for $263,750. How much did it sell for per acre?

$62,500

320 X 574.45 = 183,824 square feet. 183,824 ÷ 43,560 = 4.22 acres. $263,750 ÷ 4.22 = $62,500

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The primary operators in the secondary mortgage market include all of the following EXCEPT

FHA

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“A mortgage in which the interest rate may move up or down, following a specified schedule or in accordance with the movements of a standard or index to which it is tied” is the definition of a(n) ______________ mortgage.

adjustable rate

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“An analysis of the market conditions of supply, demand, and pricing for a specific property type in a specific area” is the definition of

market study

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Which is the fullest and most complete type of estate?

fee simple

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Which of the following would be private restrictions on property rights?

deed restriction and mechanic’s lien

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8.8% is the same as

.088

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10 of 75
Which entity is responsible for monitoring state appraiser licensing and certification agencies?

The Appraisal Subcommittee

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You have found comparable sales of rural land parcels that indicate the following sale prices per acre: ($930, $775, $1202, $995, $1612, $906). What is the median of these indications?

$962.50

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A lot measures 316.4 X 428.90. How many acres does it have?

3.12

316.4 X 428.90 = 135,704 Square feet. 135,704 ÷ 43,560 = 3.12 acres

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The ETHICS RULE of USPAP is the ________ of five Rules in USPAP.

first

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Which is NOT a characteristic of tenancy in common?

There is a right of survivorship

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You want to buy a house for $216,500. You can get a loan for 90% of value. You will also have to pay 1.5 points on the loan. If you have to pay both the down payment and the loan points at closing, how much will you have to deliver to closing to cover these?

$24,572.75

$216,500 X .90 = $194,850. $194,850 X .015 = $2,922.75 paid in points. Add in the down payment: $216,500 X .10 = 21,650. $21,650 + $2,922.75 = $24,572.75

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“For real property, a personal, unassignable, and typically revocable privilege or permit to perform some activity on the land of another without obtaining an interest in the property” is the definition of

license

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What type of property ownership is characterized by the purchase of shares of stock in a corporation, which provides a proprietary lease to occupy an apartment unit?

Cooperative

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All of the following could be participants in a real property market EXCEPT

assessors

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The Equal Credit Opportunity Act (ECOA) is enforced by:

Consumer Financial Protection Bureau

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Which entity retains final authority over revisions to USPAP?

the Appraisal Standards Board

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The appraisal standards and qualification criteria that are published by The Appraisal Foundation achieve legal authority by adoption, citation or implementation by

government agencies with the power to regulate or administrate

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A client asks an appraiser to omit the client’s identity from the appraisal report. What can the appraiser do?

Omit the client’s identity from the report but identify the client in the workfile

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The oldest system of legal descriptions for real estate is:

metes and bounds

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The Appraisal Foundation is a

not-for-profit organization

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The number of required experience hours for Certified General Appraiser applicants is ____ hours.

3,000

Which of the following would NOT be considered a negative easement?

access right of way

Which of the following is NOT a characteristic of land?

mobility

What is the median of these numbers? 17, 12, 54, 36, 71, 28, 31, 55

33.5

"A value that cannot be imputed to any part of the physical property, e.g., the excess value attributable to a favorable lease or mortgage, the value attributable to goodwill” is the definition of ____________ value.

intangible

Which would NOT be considered factors in supply analysis?

employment rates

Eric pays $35,000 to have an inground swimming pool constructed in his backyard. When he sells the property, he only receives $10,000 more for his property than what similar property sold for without a pool. This is an example of the principle of

contribution

Valuation Advisories, issued by The Appraisal Foundation, are considered:

voluntary guidance

Which would NOT be an example of demand in a real property market?

Decreasing building permits

In property measurement, a chain contains 100 links, which measures _______ feet.

What is the median of the following set of gross rent multipliers? (95, 93, 120, 94, 93, 129)

94.5

A lot measures 569.32 feet by 414.90 feet. How many acres does it have?

5.42 569.32 X 414.90 = 236,210.87 square feet. 236,210.87 ÷ 43,560 = 5.42 acres

"The geographic region from which a majority of demand comes and which the majority of the competition is located" is the definition of

market area

The intent of USPAP is to ____________ a high level of __________ in professional appraisal practice.

promote and maintain, public trust

You have found comparable sales of rural land parcels that indicate the following sale prices per acre: ($930, $775, $1202, $995, $1612, $906). What is the mode of these indications?

There is no mode

A person is thinking and making a decision based on facts and conditions without distortion by their own personal feelings. What is the best word to describe the way this person is thinking?

Objective

In a trust deed state, title to a property is vested in the __________ until the mortgage lien is satisfied.

trustee

The interest rate that banks charge when lending money to their highest rated customers is called the __________ rate.

prime

The principle of supply and demand states that the price of a commodity, good, or service varies __________, but not necessarily _____________, with demand.

directly, proportionately

What is the purpose of a state's statute of frauds?

Requires certain documents to be in writing

When appraising an income producing property, you have the following GRMs indicated from comparable sales (122, 159, 132, 126, 122, 173, 152, 126). What is the mean of the GRMs?

139

You purchased a house two years ago for $190,000. It has appreciated an average of 3% per year since the time of purchase. What is its current value?

$201,571

An appraisal is defined as the act or process of developing an ________ of _______.

opinion, value

USPAP defines _________ as the amount asked, offered, or paid for a property.

price

"A firm agreement to perform an act, refrain from acting or make a payment or delivery” is the definition of

promise

3.15% is the same as

.0315

As part of the overall requirement for continuing education, certified and licensed appraisers must complete the 7-Hour National USPAP Update Course or its equivalent ________ calendar year(s).

every 2

Here are all the sales in your area in the last 4 months. They sold for: $178,500; $166,000; $172,750; $182,000; $168,000; $174,000; $176,000; $184,000; $170,000; $175,000; $172,000; $181,500. What is the mean sale price?

$174,979

The principle of highest and best use applies to

both vacant land and improved property

Under the current AQB qualification criteria, an applicant for Appraiser Trainee must have completed ___ creditable hours of experience.

The Federal Reserve can influence the level of economic activity by

performing both of these actions

Which of these phrases is acceptable for use in an appraisal report, assuming it is accurate?

Declining property values

"The study of the cost-benefit relationship of an economic endeavor” is the definition of

feasibility analysis

USPAP requires an appraiser to be

objective

A purchaser bought a property for $176,000, put 10% down and borrowed the rest at 6.5% interest for 25 years. The lender charged 1.75 points at the closing. How much was paid for the points?

$2,772 $176,000 X .90 = $158,400 mortgage. $158,400 X .0175 = $2,772

You want to buy a house for $243,500. You can get a loan for 90% of value. You will also have to pay 2.75 points on the loan. How much will you have to deliver to closing to cover both the down payment and the loan points?

$30,376.63 $243,500 X .10 = $24,350 down payment. $243,500 X .90 = $219,150 mortgage. $219,150 X .0275 = $6,026.63. $24,350 + $6,026.63 = $30,376.63

In a residential appraisal, Fannie Mae requires the appraiser to:

Perform an objective neighborhood analysis

A problem with the real property market is that the amount of ________ is slow to change.

supply

ECOA prohibits creditors from discriminating against credit applicants on the basis of all of these categories except:

Employment status

One of the provisions of the Equal Credit Opportunity Act (ECOA) is that:

A borrower must be provided with a copy of the valuation of their property promptly after it has been completed

The median price of homes sold in your county 6 months ago was $224,650. Prices have been increasing at the rate of 7% per year. What is the median price of homes today?

$232,513 $224,650 X 1.035 = $232,513

"The rate at which vacant space in a property or group of properties for sale or lease has been or is expected to be successfully sold or leased over a specified period of time" is the definition of

absorption rate

All of the following would typically be considered to be personal property EXCEPT

wall to wall carpeting

The current number of appraisal education hours required for Certified Residential Appraiser applicants is ______ hours.

200

The _______ maintains a national registry of state certified and licensed appraisers who are eligible to perform appraisals in federally related transactions.

Appraisal Subcommittee

Which of the following is a characteristic of an effective market?

Prices relatively low Supply and demand operate freely Buyers and sellers act rationally

How is the Appraisal Subcommittee funded?

Through a National Registry fee charged to each appraiser

Which of these is a requirement of a valid real estate contract?

Consideration In writing and signed Lawful objective

What is the mean of these numbers? 123.5, 136.2, 162, 188.9,153.27, 227.98, 16, 342.66, 72.7, 21.55, 168.08

146.62

Which two of the following would be private restrictions on property rights?

deed restriction and mechanic’s lien

The _____ has oversight authority over state appraisal boards.

ASC