"The estimated cost to construct, at current prices as of the effective appraisal date, an exact duplicate or replica of the building being appraised, using the same materials" is the definition of _______________ cost. Which site valuation methods should only be utilized when the subject property is income-producing by nature? A college student has two options for meals: eating at the dining hall for $6 per meal, or eating a Cup O Soup for$1.50 per meal. An estimate of remaining economic life is required by Fannie Mac Freddie Mac VA all of the above. partial interest, An appraiser must not allow the intended use of an assignment or a client's objectives to cause the assignment results to be __________. True or false: qualitative analysis is used for elements that cannot be given a numerical value. 1. Agriculture encompasses crop and livestock production, aquaculture, fisheries and forestry for food and non-food products. It is bordered by the Red Sea to the west; Jordan, Iraq, and Kuwait to the north; the . The capitalization rate indicated by sale is ____%, The ________ approach is particularly applicable in the appraisal of special purpose properties, In the age-life method of estimating depreciation, the ___________ age is divided by the ____________ life, Fannie Mae says the cost approach ____________________. panelized taxable income statistical appraisal A single unit residence sold for $126,000. leased fee estate, The URAR sales comparison grid requires you to enter in the _________ age of the subject property and comparables. any of the above, A one-and-a-half-story house is commonly known as a Visit Selling and Servicing Guide Communications and Forms. the URARForm can be used to report the appraisal of all of the following property types except: A deed could provide all of the following information about a property except: All of the following could be sources of specific data except: The blank method has good application and evaluating land in rural areas and an older, urban areas. Qualitative Methods. Factors in Estimating Remaining Economic Life Remaining economic life is the estimated period of time until the improvements are expected to no longer serve their intended purpose as a home. casing, bedrock Over which improvements contribute to real property value is the definition of: A new building is expected to remain standing for eight years. If you still have Technical Support questions, The retail use is the highest and best use as it produces the highest value of the three choices. $754,200 X 1.51 = $1,138,842. ground rent capitalization casing, sandstone. 221.8 138.5 = 1.60. The net operating income was verified as $294,640. It is a generic form, The summation approach is another name for the _______________ approach. With you and capitalization the overall value is estimated by adding together the _____ and the _____ of the reversion of capital. Many factors can affect the useful life of an asset, both physical and economic. First array them in order. US P a P requires a prior sales history of _____ years for the _____. Comparable houses with air conditioning rent for $1,100 per month. [Name] Number of years remaining of economic life for the property. Estimated Remaining Economic Life of this property is . $305,000 expected topography. Yes, it is required by VA and FHA. A house is rented for $1,050 per month, but lacks air conditioning. 100, An old gas station on a good corner location in a desirable older neighborhood recently sold for $375,000. __________ occurs within a property; while _________occurs off the site. fee simple estate any cause. A home sells in January for $240,000 and sells again in November for $252,000. According to the EPA, blank systems are the most energy efficient, environmentally clean, and cost-effective space conditioning systems available. bundle of rights What was the cost per square foot? would cost $65,000. Physical deterioration and functional obsolescence, external obsolescence. contract, effective date of the appraisal . Site development costs (sewer, grading, road, etc.) square foot What amount should be shown in Carson's balance sheet at December 31, 2007, net of accumulated depreciation, for this machine? $3,250 grayfield capitalization rate Yes, it is a qualitative method. expected remaining economic, remaining economic Disposal value after 8 years - Zero. replacement, Today the _______________ technique of site valuation is used primarily in highest and best use analysis. Capitalization of Income Loss. In the sales comparison approach, sales data on __________ sales should be collected. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. biased Which would NOT be an appropriate legal description of a subject property? Separate site valuations would likely be required in the following situations except for: "The total period a building lasts or is expected to last" is the definition of _________ life. $12,000 $240,000 = .05 or 5%. Superfund site The difference tween the cost of an improvement and its market value on the effective date of an appraisal is: Depreciation is defined as a loss in property value from: A 10-year-old home will always have this: The. Subdivide it; 8 X 70,000 = $560,000. scope of work brownfield, "The amount an entrepreneur expects to receive for his or her contribution to a project" is the definition of Princess Victoria, the fourth daughter of the King, has undergone an operation for appendictis. modified replacement. of the report and the effective date of the appraisal, Each written appraisal report must contain the date, An example of a special purpose property would be a(n). square foot gross rent multiplier. All of the following would be considered short-lived items EXCEPT, An estimate of remaining economic life is required by, Cost Data Sources. Age-Life Method. if they are cured, it will reduce the effective age to 15 years. builder's profit True or false? $250,000 - $152,000 = $98,000 (land value). All uses are physically possible, economically feasible and legally permitted. There are curable items totaling $45,000. 11 (Reconcilia, FL Trainee Appraiser - Ch. To estimate the number, owners must consider the asset's net present value (NPV), internal rate of return (IRR), and return on investment (ROI). How many hours should each graphic designer be assigned to the project? The current cost index is 201.8. Effective date of the appraisal, date of the report. $919.90 When valuing real property, the value of the whole ____ the sum of the Estates or the parts. log home school building, The results of a _________ test will determine if there is suitable drainage and the size of the drain field that will be required for a septic system. economic life, long-lived The power of data with Mike Simonsen at Gathering of Eagles, Eric Lapin on how consumer-controlled data can change lending, Clear Capital launches UDC to support appraisal modernization. Susan owns a home on leased land. Short lived items Cost is $20,000 and depreciation on the short lived items has been identified totaling $4,850. An appraiser is using both quantitative and qualitative adjustments and their sales comparison approach. Today the _______________ technique of site valuation is used primarily in highest and best use analysis. $350,000 - $45,000 = $305,000. Two or false: every difference between a subject property and a comparable sale requires an adjustment. The easiest and best support is an analysis of demolitions. A management fee usually is based on a percentage of the _________ income. The valuation process is a systematic procedure employed to provide the answer to a(n) _______ question about the value of _________. However, appraisers are not required to report this information. What is the median of the GRMs? Cost Approach Using Age- Life Method. land residual and subdivision development all data that is needed to produce a credible appraisal, An expansion tank is part of a ___________ heating system. cost The capitalization rate indicated by sale is ____%. cubic yard buildable unit, In the age-life method of estimating depreciation, the ___________ age is divided by the ____________ life. $560,000 - $65,000 = $495,000. The Remaining Economic Life is the estimated number of years that an improvement will continue to contribute to property value. A building was constructed in July 2000 for $754,200. The intended user of an appraisal is the __________ and any other user, as identified by _________. The range is the difference between the high and the low. The URAR sales comparison grid requires you to enter in the _________ age of the subject property and comparables. . That is an instance where the cost approach has good applicability. overvalued, When measuring a condominium you should calculate ____ using _______ measurements. By the capitalized value method, how much is the depreciation attributable to the lack of air conditioning? Why does an appraiser need as much information as he can get about rental comparables? Parging is used on which kind of foundation wall? entrepreneurial profit, Building permits and worker's compensation are examples of __________costs. improvements only, A short-lived item is a building component with an ___________ life that is shorter than the ___________ life of the entire structure. And amount paid for the use of land, improvements or capital good is the definition of: Typical replacement allowance items would not include: _____ income is the anticipated income from all operations of the real property after an allowance is made for vacancy and collection of losses, Dividing sales price by gross monthly unfurnished market rent. The relationship or ratio between the sale price or value of a property and it's periodic gross rental income is the definition of: Modular homes are constructed to meet blank requirements. Single Family Exterior Only(FNMA 2055), $500. What is the GRM indicated by this sale? All uses are physically possible, economically feasible and legally permitted. Whaling is the hunting of whales for their usable products such as meat and blubber, which can be turned into a type of oil that became increasingly important in the Industrial Revolution.It was practiced as an organized industry as early as 875 AD. LOCAL and GENERAL. suitable for a single-family homesite unit-in-place, The ________ approach is particularly applicable in the appraisal of special purpose properties. All rights reserved. would cost $50,000. A property sold for $2,350,000. It is easy to use and easy to explain to a client. $8,491. Required: 1. When the home resold it had not been improved at all. It is common in appraisal reports to include a map that shows the location of the _______________. Extraction Method. The current cost index is 221.8. And modern construction, the most common sub flooring material is: The main support beams for home are called: The most common roofing material currently use in the new construction in the US is: Roof slope is expressed as _____ over _____. easement The cost index at that time was 138.5. land 12 + 48 = 60 years (total economic life). $75,000 per unit as a site for a duplex; or C. $50,000 per acre as a retail site. There are eight numbers, so the median lies between the two middle numbers in the array (108.9 and 109.8). It is 5 years old and has sustained a total of 10% depreciation. The Fannie Mae Single Family Comparable Rent Schedule is designated as Form, "A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis" is the definition of. True or false: adjustments in the sales comparison approach for economic characteristics are typically only made for commercial our income producing properties. Besides properties that have recently sold, other value . GRMs are derived by dividing the __________ by the property's ___________ at the time of sale. What cost estimating method has he employed? cost/benefit Each appraisal report must contain two dates, the _____ and in the _____. Platform Framing. Modified Age-Life Method. Fannie Mae states that in calculating the gross living area of a detached home, the appraiser must use blank measurements. 12 + 38 = 50 years total economic life. square foot Access to Appraisal Reports VA staff, lenders, agents, servicers, and other requesters with VA issued ID numbers that are associated with the loan number will be able to retrieve the appraisal from E-Appraisal for review, issuance of the Notice of Value (NOV), or other functions. What is the depreciated value of the improvements by the age-life method, before including the site value? replacement A square contains enough shingles to cover 100 square feet. However, related property deficiencies must be discussed in the sections of the appraisal report that address the improvements analysis and comments on the condition of the property. 2. Subtracting the residual value -- zero -- from the $10,000 recorded cost and then dividing by the software . Hot Water Heat. If the subject is considered typical for the area and trends indicate that properties with deferred maintenance are renovated, it is reasonable to consider that the current improvements and property type will be useful for many years to come. "A method of estimating land value in which the depreciated cost of the improvements on an improved property is calculated and deducted from the total sale price to arrive at an estimated sale price for the land" is the definition of the ___________ method of site valuation. It is 12 years old and has an estimated remaining economic life of 38 years. $2,042. vacant lots "The process of valuing a universe of properties as of a given date using standard methodology, employing common data, and allowing for statistical testing" is the definition of. shape Selected GAAP and Non-GAAP measures: Sales . $294,640 $2,350,000 = .125 or 12.5%. The identification of relevant characteristics is a judgment made by, income-producing or suitable for income production, The ground rent capitalization method should only be used when appraising a property that is, Cost Index Trending Solution. "The process of valuing a universe of properties as of a given date using standard methodology, employing common data, and allowing for statistical testing" is the definition of $252,000 - $240,000 = $12,000. $87,500 specific data only If an appraiser uses three comparable sales and the sales comparison approach: Land residual and ground rent capitalization. Which cost estimating method is the most detailed and time-consuming to develop? Execution, Learning Short-Lived Depreciation. Both Appraisals and a praise all review assignments. The remaining economic life is used in the Age-life Method of estimating depreciation. Zoning allows it to be subdivided into 8 lots and it is estimated that each lot could sell for $50,000. Footings should be ________ as wide as the ____________. estimates and will comment on the methodology used to estimate depreciation, effective age and remaining economic life. 201.8 133.6 = 1.51. Condemnation occurs when a municipality exercises, An estimate of remaining economic life is required by. Yes, it is required by VA and FHA. The appraiser should compare its estimate of the improvements' remaining economic life with the