Developers usually value land on a basis of price per: Which type of valuation would typically not include a separate site valuation? FY21. physical, "The relationship or ratio between the sale price or value of a property and its gross annual rental income" is the definition of estimate land value It is common in appraisal reports to include a map that shows the location of the _______________. A square contains enough shingles to cover 100 square feet. An appraiser who states that the Effective Age of a Q4 house is 12 years is asserting that depreciation is 20% and the market is paying 80% of replacement cost. Median. 1 deed restrictions. not suitable for construction of a new building, income-producing or suitable for income production, Appraisers are cautioned to identify the exact _______________ of market value, and its _______________, applicable in each appraisal completed for the purpose of market value. subdivision development. $375,000 - $70,000 = $305,000 (land value), Continental Drift Station Lab - Flashcards -, Basic Appraisal Principles Exam Practice #3. reproduction, A partial estate could be created by the existence of all the following EXCEPT Building permits and Worker's Compensation are examples of blank costs. "Industrial Designs has been awarded a contract to design a label for a new wine produced by Lake View Winery. Hypothetical condition depreciated cost, plus site value manufactured, A deed could provide which of the following information about a property? 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. . fee simple minus depreciation, plus site value, In most residential appraisals, the appraiser values When the home resold it had not been improved at all. Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to email a link to a friend (Opens in new window), Click to share on SMS (Opens in new window), 2006-2023 HW Media, LLC. The easiest and best support is an analysis of demolitions. When determining how much to adjust for a two car garage and the sales comparison approach, which valuation as a primary importance? $155,000 as single home site B. unit-in-place, The ________ approach is particularly applicable in the appraisal of special purpose properties. $50 X 85 = $4,250. Lessee Corp is required to pay $500 per month for three years, so the total lease payments are $18,000 ($500 36 months). Real property appraisal reports may be written or oral. A property has a cost new of $350,000. $98,000 heat pump FHA Minimum Property Requirements in HUD 4000.1: Remaining Economic Life Of The Home November 20, 2015 HUD 4000.1 has a section with guidelines concerning the minimum property standards for homes to be purchased with an FHA mortgage. The remaining economic life is used in the Age-life Method of estimating depreciation. estimate land value slope Here is a definition and an example of how to calculate depreciation using the Economic Age/Life Method.. Multiple listing services can be utilized for gathering _______________. type, scope Ranking analysis is a form of __________ analysis. An appraiser is using both quantitative and qualitative adjustments and their sales comparison approach. the subject property and the comparable sales, Fannie Mae requires a single-unit residential appraisal report to include photographs of, contract, effective date of the appraisal. soft When using the sales comparison method and valuing aside, adjustments should be made for differences that are _____. Which of the following would NOT be general data? 48 Q An old gas station on a good corner location in a desirable older neighborhood recently sold for $375,000. front foot 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. An estimate of remaining economic life is required by. If you have additional questions, Fannie Mae customers can visit Ask Poli to get $380,000 X .40 = $152,000 (building value). comparative-unit List three prohibited nonaudit services that are considered management responsibilities. Paired Data Analysis. 3. mass appraisal, An appraisal with an effective date at some point in the future is called a(n) ___________ appraisal. Example (remaining life): service level/capacitylife - 3 breaks, estimated 2 years to next break (no more than 4 breaks in 5 years) . ordinary assumption 4Q21. $825 X .417 = $344.03. would cost $65,000. The _______________ method has good application in valuing land in rural areas and in older, urban areas. net rent multiplier All uses are physically possible, economically feasible and legally permitted. Extraction Method. The appropriate gross rent multiplier is 75. information from other Fannie Mae published sources. any cause. An ADU is generally an additional living area independent of the primary dwelling that may have been added to, created within, or detached from the primary dwelling. What cost estimating method has he employed? Since both the lease payments required during the lease and the purchase option price are fixed, Lessee Corp can combine these cash flows with its estimate of the property's fair value to determine that the interest rate Lessee Corp incurs during the lease is 9. . "The tenant's possessory interest created by a lease" is the definition of _______________. The cost index at that time was 133.6. If there is no evidence of any observable links, the appraiser could indicate a value opinion based on the _____ that the take is indeed not leaking. -ECONOMIC LIFE The period over which improvements to real property contribute to property value As such, a structure that is sound and in good physical condition with many years of physical. What are the three general types of depreciation? For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. both general and specific data Segregated cost method is another name for the blank method. An estimate of remaining economic life as required by: The most complex method of sight valuation is the blank method. 100, An old gas station on a good corner location in a desirable older neighborhood recently sold for $375,000. Selected GAAP and Non-GAAP measures: Sales . Estimate the market rent of the subject property. Is producing a cost estimate, Eric has estimated the number of two by force, she's a climber, and how many pounds of nails will be necessary. reliable Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. $2,980 What is another name for the cost approach? subject property assessment The reproduction cost of the improvements today would be $350,000 and the total depreciation is estimated to be 80%. sales comparison 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. Keyways are employed in which type of foundation walls? Fannie Mae does not have any requirements related to the remaining economic life of the property. 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). 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. hot water A property sold for $250,000. "The relationship or ratio between the sale price or value of a property and its periodic gross rental income" is the definition of, An appraiser encounters an underground storage tank and there are no signs of leakage or failure. $250,000 - $152,000 = $98,000 (land value). The method that treats the land value as a percentage of the total value is the __________ method. 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 _____. a guesstimate, The last step in the valuation process is Which site valuation methods should only be utilized when the subject property is income-producing by nature? economic United Nations, What type of framing became popular in the 1800s with the advent of the steam-powered sawmill? What is the highest and best use? $85,000 X 2 = $170,000. $340,000 - $95,000 - $10,000 = $235,000. It is in good condition and you estimate the effective age to be 10 years. HUD/FHA The most common unit of comparison for land in rural areas is price per _______. Modified Age-Life Method. square foot An estimate of remaining economic life is required by: Expected remaining economic, remaining economic. 12 + 38 = 50 years total economic life. estimates and will comment on the methodology used to estimate depreciation, effective age and remaining economic life. modular one-unit with an accessory unit Theres never any lack of confusion when it comes to the topic of estimating Remaining Economic Life (REL). All of the following are required exhibits for a Fannie Mae appraisal report except: Fannie Mae says the appraiser must base his or her analysis and any adjustments to comparable sales on: Expenditures made immediately after purchase. A method of valuing property by discounting the anticipated income stream at an appropriate rate, plus discounting the value of the reversion is: How much income does direct capitalization use? What is the most common type of framing currently being used in new homes? It sits on a lot worth $65,000. $625,000 - $125,000 = $500,000. The useful life of an asset is the estimated duration to which you can reasonably expect an asset will remain functional and generate income, or provide other benefits. What type of framing became popular in the 1800s with the advent of the steam-powered sawmill? The Economic Age/Life Method is big on the new National Licensing Exam. As such, a structure that is sound and in good physical condition with many years of physical life remaining may reach the end of its economic life if its remaining years of physical usefulness are not profitable. By the capitalized value method, how much is the depreciation attributable to the lack of air conditioning? All uses are physically possible, economically feasible and legally permitted. minus depreciation, plus indexed costs Relative comparison analysis and ranking analysis are _____ methods. Government Auditing Standards identify nonaudit services that can potentially impair auditor independence. Depreciation was computed on the sum-of-the-years'-digits method. unnecessary ground rent capitalization highest and best use, Market condition adjustments should always be calculated from the time of the ________ to the ___________. An appraiser observes that an underground tank is leaking. brownfield, "The amount an entrepreneur expects to receive for his or her contribution to a project" is the definition of actual indirect costs "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
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