The standard of measurement for a single family detached residence is the gross
Living area
Ideally, a house should be positioned on its lot so that the main living areas face
South
The MOST common type of frame construction for one and two story houses is
platform.
Vertical framing members are called
Studs
Footings are part of
the substructure
The skeleton members of a building to which the interior and exterior walls are attached are called its
Framing
The interface between the roof and chimney is called
Flashing
Electrical towers create
electromagnetic fields
The efficiency of insulation is measured by its
R value
The power of an electrical line is measured in
Amperage
Circuit breakers
protect the electrical lines from overload
Plumbing fixtures are
Real property
As of what year did the federal government ban the use of lead
based paint in housing? -
1978
When earth touches wood, a major problem could be
Termites
Gross living area (GLA) is measured
using exterior dimensions
The sales comparison approach relies on the principle of
Substitution
Another name for the sales comparison approach is
The market data approach
The transaction price of a property is its
sales price
MOST residential appraisals are based on
fee simple ownership
The appraisal process requires that the appraiser collect, record, and verify
data on the region, city, and neighborhood.
Ideally, the appraiser of a residential property will collect data on comparable property sales that occurred no earlier than
6 months prior to the date of appraisal
When choosing comparable sales for the sales comparison approach, property characteristics that should be identical or very similar to those of the subject property include
all of these
One method of compensating for sales that involved different terms of financing is use of
the cash equivalency technique
To be considered comparable to the subject property, a comparable must have been sold
in an arm's-length transaction
All sales data must be verified by
one of the principals to the transaction
To be considered comparable sales, properties should be
all of these.
The value of adjustments to the sales prices of comparable properties is set by
The market
What is the range of UAD condition entries?
C1 to C6
An area with set geographic boundaries and similar property uses is called
a neighborhood.
The combination of two or more adjacent parcels is known as
assemblage.
The increase in value that can occur when parcels are combined is called
Plottage
The agency that creates federal flood hazard maps is
FEMA
A transaction in which neither the seller nor the buyer is acting under duress is called
arm's-length.
The first step in the appraisal process is
Stating the problem
The level of business activity in a community is known as its
Economic base
Another term for developer's profit is
entrepreneurial profit.
A church in a residential area is an example of
a nonconforming use.
Zoning is an exercise of a government's
police power.
All improvement costs, less depreciation, are subtracted from sales price to derive land value in the process called
Extraction
Private deed restrictions often are enforced through
a homeowners' association.
A land
to-building (L:B) ratio is used in which site valuation technique?-
Allocation
If the L:B ratio is 1:3, the percentage of land value to overall value is
25%
A parcel of land has a L:B ratio of 1:4. If overall property values average $200,000 in the neighborhood, the land value of the parcel under consideration is
$40,000
If a property's total value is $350,000, and the building value is $275,000, the land value is
$75,000
A building's current construction cost is $200,000 and it has depreciated 10%. If the total property value is $220,000, the land value is
$40,000
If the highest and best use of a parcel of land is its development potential, the method most often used to value it is
the subdivision development method.
A condemnation appraisal might be required when the government exercises its right of
Eminent domain
Site value is determined separately in.
the cost approach
Highest and best use is
the maximally productive use of the land.
Land and building must be valued at the same highest and best use according to the theory of
consistent use.
If land is rented, the rent might be analyzed to render an opinion of value in
the ground rent capitalization method
The amount of profit attributed to the land development function is
entrepreneurial profit.
The cost of improvements identical in design and material to those of the subject property is called the subject's
reproduction cost
The cost of improvements identical in utility to those of the subject is called
Replacement cost
In using the cost approach to appraising, the estimated construction cost of improvements usually will be based on
the cost of new improvements at current prices
The index method of estimating construction cost is based on
the original cost of improvements
If a commercial structure is rectangular with sides of 65 feet and 135 feet and the current local cost to build a similar structure is $45 per square foot, what is the estimated construction cost of the structure using the square
foot method? -
$394,875
A nationally based construction cost manual is acceptable for appraisal purposes if it
contains regional cost multipliers.
In a residential appraisal utilizing the URAR form, gross living area is derived by
finding the area of the whole house based on outside measurements, then subtracting the area of nonliving spaces.
The cost of supervising workers on a construction site is considered
a direct cost
The term entrepreneurial profit refers to
the developer's profit
The amount of entrepreneurial profit
reflects the success of the project.
An indirect cost also is known as
a soft cost
A direct cost also is known as
a hard cost
An example of an indirect cost is a property's
Appraisal fee
An example of a direct cost is a property's
Foundation
Which cost estimation method must take current costs into account?
All of these
Which cost estimation method must take geographic differences into account?
All of these
Gross living area includes heated, finished space measured using
exterior dimensions.
The original cost of a house was $50,000. The original index is 1.50 and the current index is 3.00. The current estimated cost of the house, using the index method, is
$100,000
The MOST accurate cost estimation method is
the quantity survey method
The LEAST accurate cost estimation method is
the index method
The total difference between a building's cost new and its market value is called
accrued depreciation
Any loss of value from causes outside the property itself is called
external obsolescence
A bedroom that can be entered solely through another bedroom is an example of
functional obsolescence
The number of years of useful life left to a building from the date of appraisal is the building's
remaining economic life
Physical or design features that exceed current requirements are called
a superadequacy.
A method of computing accrued depreciation in which the cost of a building is depreciated at a fixed annual percentage rate is called
the age-life method
Which method of estimating depreciation is the easiest to apply?
Age-life method
The chronological age of a house is 47 years. The appraiser renders an opinion of the structure's effective age of 25 years and remaining economic life of 75 years. What is the percentage of accrued depreciation?
25%
The name of the method used to calculate depreciation in question 8 is
age-life
In question 8, the replacement cost of the house is estimated at $500,000. What is the current estimated value of the structure?
$375,000
In the cost approach, depreciation is a factor in
the value of the structure
When does building cost equal value?
When depreciation is zero
that is, the building is new
...
When depreciation is greater than the value added by curing it, the depreciation is
Incurable
When depreciation is less than the value added by curing it, the depreciation is
Curable
The market rent of a house with four bedrooms is $2,000 per month. The market rent of a house with three bedrooms is $1,750 per month. The gross rent multiplier in the subject neighborhood is 100, indicating the value of a fourth bedroom is
$25,000
The technique used in question 15 is called
the rent loss method
The amount of functional obsolescence in question 15 is
$25,000
The form of depreciation that is always incurable is
external obsolescence
Which of the following components MOST likely suffers from incurable deterioration?
Studs and joists
A weakness of the age
life method is that it is -
more subjective than other methods