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82 Cards in this Set
- Front
- Back
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Appraisal is... |
the act or process of developing an opinion of value. |
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Real estate is... |
the physical land and appurtenances affixed to the land. |
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Real property includes... |
all interests, benefits, and rights inherent in the ownership of real estate. |
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The manner in which a client employs the information contained in the appraisal report is called... |
the intended use |
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Real property consists of... |
rights in realty |
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Appraisals are always used... |
to solve problems that involve real estate valuation |
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An appraiser is appraising a small residential property and observes that is has a clothes washer and dryer. Should this item be included in the appraisal? |
The appraiser should include these items, but they should be identified as such and their contributory value should be estimated. |
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Items that are built to be permanent and intended to be included with real property are... |
real estate |
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An appraiser... |
measures and develops an opinion of value. |
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Easements are another division of property rights. They usually give a party the right... |
to access the property to perform a specific service. |
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The fifth amendment to the US Constitution... |
requires the government to pay just compensation for land taken for the common good. |
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Suppose that you have owned a 40-acre parcel of land for the last 25 years. You paid the taxes on the real estate for the first 20 years but have no paid them for the last five. Which of the following statements is true? |
The state has the right to sell the real estate to pay the back taxes. |
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Suppose that you own a house and five acres just outside the town of Monticello. This home is adjacent to Route 23, which has been a small two-lane highway for many years. Last year, the state decided to widen this road to six lanes to accommodate all the future traffic that will be created by a new riverboat casino. To facilitate this expansion, the state will need about 50 feet off the front of your homestead. The state will... |
pay you a fair and equitable amount based on the estimated property value before the taking and another valuation after the taking. |
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A fee simple interest in real property is limited only by... |
taxation, eminent domain, police power, and escheat |
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A deed should be recorded because... |
recording gives public notice of the transaction and sets the priority. |
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Zoning and environmental protection regulations are examples of... |
police power. |
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Land is unique because... |
no two parcels can occupy the same space on the face of the earth |
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The supply of land is... |
finite. |
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The concepts of land are.. |
legal, geographic and environmental, economic, and social |
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An example of governmental force that affects real estate value would be... |
changes in local building codes |
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Zoning and environmental protection regulations are examples of... |
police power |
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What are three ways to hold title or deed to real estate? |
Joint tenancy Tenancy in common Tenancy by the entirety |
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A parcel of land was owned by Mrs. Long, who offered it for sale or lease. Short Development Co., a retail developer, obtained control of the real estate and then improved it with a retail building. The listing agent said that Long and Short spilt the real estate and that Long owns the land but Short owns the building. Which of the following statements is correct? |
This is most likely a situation in which the owner leased the property to the developer, who improved the property. The terms of the lease must be researched. |
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When real property is sold by one person to another, the amount of money used to compensate the seller is called.. |
the price of the real property |
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A cash-equivalent price... |
reflects what a seller would accept as if he or she received cash at the closing. |
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A good's capacity to satisfy human desires or needs is known as... |
utility. |
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The city planning department has indicated that a vacant residential lot located in a flood zone cannot be given a building permit. This site... |
has lost nearly all utility. |
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Demand for real estate may be affected by... |
increasing population and employment the availability of mortgage financing increases in purchasing power |
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The four agents of production are... |
Land, Labor, Capital, and Entrepreneurship |
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Real property has value because is... |
provides future benefits |
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The supply of one-unit residential properties is most affected by... |
an increase in the number of homes built. |
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Two homes in the same addition have the same size, location, amenities, and features. One is priced at 100k and the other is priced at 110k. Which of the following statements is the most accurate. |
The lower-priced home will attract more demand. |
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When a property is put-up for sale, the seller is forced to reduce the price when.. |
The seller decides that a price reduction is needed to facilitate a sale. |
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In a high-demand market, the cost of building a new property will increase substantially until... |
The supply increases because new builders get into the market. |
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A one-unit homeowner who builds a new and unique structure will commonly find that... |
Generally, fewer people desire unique structures. |
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Externalities are... |
factors outside the property that can affect the property values |
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When demand for housing increases, the supply... |
increases slowly. |
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The overproduction of new homes... |
causes oversupply and lower prices |
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A buyer invests in a small strip mall because she believes the property will net 25k per year. This is an example of... |
Anticipation |
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As an agent of production, capital is... |
the necessary equipment, buildings, and infrastructure for development |
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The statement "property values are created and sustained when the characteristics of a property conform to the demand of its market" refers to... |
conformity |
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The three approaches to value are... |
sales comparison, cost, and income capitalization |
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Higher and best use... |
includes two parts when the property is improved: the highest and best use as though vacant and the highest and best use as improved. |
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Land valuation techniques include... |
sales comparison approach, allocation, and extraction |
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The valuation technique in which land and building are valued separately is... |
the cost approach |
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The valuation technique in which the income a property earns is considered... |
the income capitalization approach |
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In the valuation process, defining the value estimated is included in the... |
identification of the appraisal problem. |
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One reason to estimate the highest and best use "as though vacant" and "improved" is... |
to recognize when the improvements should be razed. |
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Land value can be estimated using all of the following techniques except... |
the cost method. |
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There are three approaches to estimating market value because... |
purchasers have three alternative options avaliable |
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One activity that is not part of defining the appraisal problem is... |
identifying the fee with the client. |
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What is the final step of the valuation process? |
completion of a report with the defined value. |
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The date of the value opinion is... |
the date stipulated by the client |
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An appraisal is made as of a specified date to... |
satisfy the requirements of the client. |
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Data requirements for an appraisal assignment are determined by the... |
nature of the problem |
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The value to be estimated is determined by the... |
client's problem. |
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An appraiser found that the subject has a septic system in the front yard. The appraiser could not tell if the system was working, so she assumed it was operational. The appraiser has made an... |
extraordinary assumption. |
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An appraiser was asked to appraise the fee simply interest in a 0.24 acre site improved with a 24 year old residence. The appraiser stated in the report that "It is clear that the roof covering is not in marketable condition. It is a condition of this appraisal and the value opinion that the roof shingles be replaced." This would be an example of... |
hypothetical condition. |
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In an appraisal assignment, a jurisdictional exception is applicable when... |
the state or local laws or regulations are contrary to a part or parts of USPAP. |
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An appraiser inspected the subject property and found termite damage on the floor joists in the crawl space. The client told him to assume that it was repaired and condition the value on the repair. This is an example of a(n)... |
hypothetical condition. |
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An appraiser was asked to appraise the fee simple interest in a 0.24 acre site improved with a 24 year old residence in February. The ground and the roof of the house were covered with 10 inches of snow. The appraiser stated in the report that "It is assumed that the roof covering is in marketable condition." This would be an example of... |
An extraordinary assumption. |
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An appraiser states the following in an appraisal report: "This appraisal assumes that there are no negative subsurface conditions that will impact the market's reaction to this property, such as subsidence or the existence of toxic waste or soft substrata that is incapable of supporting building foundation." This is an example of a(n)... |
ordinary assumption. |
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Solve the following problem: 2*5/7+4/5 = |
2.229 |
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Solve the following problem. -16/-4 - 9 |
-5 |
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If a residential property sold for $96,500 in January 2009 and resold in March 2013 for $103,500, what was the annual (straight-line) increase in the sale prices? |
1.74% per year
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What is the acreage of a property that is 250.3 by 925.335? |
5.317 acres |
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If you purchased a property for $125000 one year ago and sold it today for $123500, what would be the percentage change on a straight line basis? |
-1.2% |
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Solve the following problem: 12 * 11 + 5/7 - 6 |
126.71 |
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What is the area of a circle who's outside measures 29'? |
660.52 square feet |
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If a residential property has a lot measuring 150 feet by 250 feet... |
The site is 0.86 acres. |
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What is the volume of a box measuring 9 feet by 9 feet by 15 feet? |
45 cubic yards |
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What is the square root of 144? |
12 |
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What is the area of a triangle that has a base of 20 feet and a height of 12 feet? |
120 square feet |
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What is the annual rate of increase indicated by the sale of a property at $135000 four years ago and a resale today at $144500? Use the annual straight-line method. Round your answer to the nearest percentage point |
2% |
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A nearby property sold for $125000 and included a finished basement. The subject property is almost identical except that it does not include a basement. What does this tell you about the subject? |
The subject is worth less than $125000 |
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What is the area of a rectangle that is 6'9 by 12'8? |
85.5 square feet |
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If a property is increasing in value by 3.5% per year on a straight-line basis, what is the value of a property that was purchased 22 months ago for $155000? Round your answer? |
$165000 |
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A property just sold for one million and the gross income was $235000 per year. The operating expenses were $100000. What can you say about the property? |
The ratio of gross income to sales price is 23.5% The ratio of sale price to gross income is 425% The ratio of net income to sales price is 13.5% |
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The subject house has the following characteristics: Living area (1200 sq ft; cost of construction 85$) Garage (550 sq ft; cost of construction 25$) Basement (1200 sq ft; cost of construction 25$) Screened porch (450 sq ft; cost of construction 25$) What is the cost to build this house? |
157,000$ |
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You are selling a property for $104,450. You must pay a 6% real estate brokerage fee, a $600 title insurance expense, a $300 expense for a survey, and a $100 closing fee. What will you net at the closing? |
97000 |
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A lender has quotes an interest rate of 5.5% per year with three points on a 75% loan for a property selling for $125000. What will the expense be for the lender points? |
$2812.50 |
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A lender has quoted an interest rate of 5.5% per annum with monthly payments. What is the interest payment in the first month for a $100000 mortgage amount? Round your answer to the nearest $100. |
$500 |
