What would be the adjusted price of a comparable that had an extra bedroom that the subject property did not have if the comparable sold for $172,000?
Bedroom = $1000
Bathroom = $1500
$171,000 (CBS) = 172000 - 1000 = 171,000
What would the adjusted price of a comparable that lacked a bathroom that the subject property had if a comparable sold for $135,500?
Bedroom = $1000
Bathroom = $1500
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The sales comparison (Or market) Approach is:
* the most direct of the value approaches
* The most easily understood approach
* based on the principle of Substitution
To qualify as a comparable a sale must be what?
* A competitive property
* An open market transaction
* Recent in time of sale (Similar time frame)
A competitive property means one that:
a prospective buyer would consider as an alternative purchase
Required data about a comparable sale should include:
* Sale transaction data
* physical characteristics
* legal characteristics
The purpose of verifying with a party to a transaction is to:
improve the reliability of your market data
Market data sources available to the appraiser include:
* Public Records
* Multiple listing services
* Profit and non - profit data services
A market study shows that prices have increased 1% per month recently. The appropriate type of an adjustment to apply to the sales price is:
a percentage adjustment
The final indicated value by the sales comparison approach should not consider what?
The average price of the comparable (Should have weights)
A comparable home sold for $165,000. The subject property has a masonry fireplace valued in the market at $4500. The comparable property has no fireplace. After making your fireplace adjustment the comparable home's adjusted sales price will be what?
0
A comparable home sold for $118,000. It has a full basement estimated to be worth $9,000. The subject property has no basement. To make your adjustment you should do what?
CBS, subtract $9000 from the comparable property.
The market or sales comparison method of appraising land is difficult in older built up neighborhoods because:
Vacant land sales are often scarce
Which method of appraisal would be the most appropriate for appraising raw acreage zoned for homes?
The land development method
If the sale represents 40% of the total value in a particular neighborhood, how much land value would be allocated from a $200,000 sale of a single family home?
0
To adjust the sale price of a comparable sale with 10% better location you should do what?
Subtract 10% from the price (CBS)
The strongest interior walls in a house are:
Bearing Walls
Sheet metal used on a roof of a house to prevent seepage of water through the roof is called what?
Flashing
The beam that runs across the top of a door or window opening in the frame of a house is called a what?
Header
A test performed to determine the ability of soil to absorb water is a what?
percolation test
A number that represents the effectiveness of insulation materials is called what?
R-Value
The steeper the slope of a roof, the _________ the pitch.
Greater
The higher the EER the __________ the energy efficiency of an appliance.
Greater
The horizontal member to which the wall studs are attached is called a what?
Sole plate
Vertical members that make up the supporting elements of a wall are called what?
Studs
Which of the following formulas would you use to determine a percentage change in the market for a property that has sold more than once in a short period of time?
100% - (previous price / new price)
A property sold 12 months ago for 210,000. It sold again, this month, the current date of appraisal for $216,400. What is the monthly rate of increase?
(216,400 - 210,000) / 210,000 = .0304761905 / 12 = .0025 = .25% per month
Property 1 recently sold for $228,000 and property 2 sold at the same time for $214,500. Property 1 is 10 years old and property 2 is 14 years old. Apart from this age difference, the properties are substantially similar. What is the dollar adjustment amo
228,000 - 214,500 = 13,500 / 4 (# of years difference) = $3375 per year.
A drawing shows a house that has a living are 32 by 85 feet. There is an attached garage that is 20 feet by 20 feet and also an unheated sunroom 10 feet by 12 feet. Estimated costs of replacement are as follows:
*Living area = $60 per square foot
*Garage
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The ground floor measures 38 x 48, the second floor is the same measurements, and the basement is half that. If the ground floor improvements are valued at $62 a square foot, the second floor improvements are valued at $48 a square foot, and the basement
0
As used in appraisal, all cost estimates relate to:
Typical Costs on the date of value
What are the four elements of comparison used in the sales comparison approach?
Terms
Time of sale
Location element
Physical element
Sales adjustments should be market related. True or False?
True
Two or more percentage adjustments should theoretically be multiplied together (instead of added) when they are dependent upon each other. True or False?
True
To adjust the sales price of a comparable sale with 10% better location, you should add 10% to the price. True or False?
False, (CBS) you should subtract by 10%.
An example of an economic unit of comparison in the appraisal of land is the price per build able apartment or dwelling unit. True or False?
True
If the 1800 square foot houses in the subject neighborhood sell typically at $200 per square foot, you would expect that a 1400 square foot house would sell for under $200 per square foot. True or False?
False, just square footage doesn't determine the price per square foot.
Variable units of comparison can often be effectively analyzed by graphing the sales. True or False?
True
Using "matched pairs" of comparable sales is considered an indirect method of estimating sales adjustments. True or False?
False, its considered the direct method of estimating sales adjustments.
A comparable sale should be adjusted for the terms of sale when the sale involves unique financing that offers an advantage to the buyer. True or False?
True
The land residual method is based on the principle of surplus productivity. True or False?
True
Land value estimates by the abstraction method routinely are just as accurate as those arrived at by the market method. True or False?
False, they are not as accurate as the market method.
Whether the land is actually vacant or improved, it should be appraised as if it were vacant. True or False?
True, this is an example of highest and best use.
Replacement costs:
The cost to build a structure of similar utility. (Example tires. not the exact same)
Reproduction Costs:
The cost of a duplicate or nearly identical structure. Every physical component must be included. (Exact same)
The cost approach is often emphasized when estimating the value of new or nearly new property. True or False?
True
The quantity survey method is the most practical and widely used method of estimating construction costs.
False, its the comparative square foot (or comparative unit) method.
List the cost estimating methods
*the comparative square foot (or comparative unit) method.
*the unit-in-place method
*The index (or cost service index) method
*The quantity survey method.
The unit in place method of estimating costs is most often used a supplement to refine the square foot method. True or False?
True