Real Estate National Valuation Exam Flashcards

Real Estate National Valuation Exam Flashcards The first step in an appraisal isto define the problem.A house built in 1920 had a garage that was 12'x18'.Today, if an acceptable garage is 16'x 20', this property suffers from functional obsolescence.If the net operating income and the capitalization rate were known, how would an appraiser find the value of a property using the income capitalization approach to value?Divide the net operating income by the capitalization rate.It is necessary to calculate a dollar value for depreciation when using which of the following?The cost approach to value.The Rose family owns a home in a semi-rural area, which is about five years old. Recently announced plans for a new regional airport will place their home directly in line with a main runway ending 1 mile before their home. If the airport is constructed, will this diminish the value of the Rose Home?Yes, because of economic obsolescence.A development company owned property that the city wanted so that it could extend the runways at the municipal airport. If the company refuses to negotiate with the city, then the city may acquire the property by eminent domain.In the appraisal of an office building, which of the following would be classified as external obsolescence?A law requiring the building to be retro-fitted with fire sprinklers.A metes and bounds legal descriptionis used to describe irregular pieces of property.The Adams family purchased the largest and most expensive house in a new subdivision. Five years later, when they were ready to move, they discovered the monetary value of the home had gone up proportionately less than the other houses in the neighborhood. This phenomenon is an example of the principle of regression.A recorded subdivision plat is used in the lot and block system.A 1/8 mile squared is10 acres.Which of the following best describes the purpose of a building permit?The evidence of compliance with municipal regulations.A real estate agent should tell the buyer, his customer, which of the following?A pending or recent zoning change.An owner was building a house for himself. Due to personal preference, he decided not to put in a bathtub. This would result in functional obsolescence.An appraiser is usually paida fee based on the amount of time and effort.Looking at shopping centers in the appraisal process the sicial fiber of the community and distances from schools is called Neighborhood analysis

All of the following are examples of police power EXCEPTrestrictive covenants.Farmer Donald is selling two parcels of land together. One of the parcels is one square mile, and the other parcel is five acres. The sale price is $2,100 per acre. What is the total sale price of the property Donald is selling?

$1,354,500.00

For the past 30 years, the Ls have operated a neighborhood grocery store. Last week the city council passed a zoning ordinance that prohibits packaged food sales in the area where the Ls' grocery store is located.The store is now an example of a nonconforming use.The appraisal approach most likely to be used in valuing a public library building would be?cost How does one determine the gross rent multiplier? Property value divided by the monthly rent.A scale drawing shows a room to be 3 inches by 4 1/2 inches. Carpet is $15 per square yard is to be installed in the room. If the scale is 1 inch to 4 feet, how much would it cost to install the carpet?$360 The primary survey line running north and south in the rectangular survey system is the principal meridian Apartment houses in an area were selling for $100,000 and a buyer offered $100,000 for an apartment building. The buyer is operating on the principle ofhighest and best use.substitution.Restrictive covenants that run with the land apply to and bind all successive owners of the property.Defined as a loss in value from any cause, depreciation is generally divided into three categories. The loss of value due to the normal wear and tear on a property is called physical deterioration.In doing a market analysis, an appraiser found a recently sold property where the owners had just gone through a divorce. The property had been listed for $60,000 for 3 months but sold for $40,000. Should the appraiser use this as a comparable?No, because of the divorce it was not an arms-length transaction.A section of land containscontains 640 acres more or less.Which best describes why a buyer purchases a home using the market data approach?Buyers buy after they compare the house with others.A tire company has a manufacturing plant located in an area that has just been rezoned for residential usage. The company is allowed to continue operating the plant under the new zoning classification. However, if the plant is destroyed by fire or other hazard, the tire company may not construct another plant in the neighborhood without first applying for a zoning variance.Mrs. Jones, an appraiser, is appraising a single family residence for which she has located six closely comparable properties, all sold within the past six months. The subject property is rented for $500 per month. It is a custom built home, approximately three years old. Mrs. Jones would probably give the most weight in her final estimate of value

to which of the following appraisal methods?market data approach Physical deterioration is considered curable wheneverit cost less to correct than the resulting value increase.A residential developer's deed restrictions would probably include all of the following EXCEPT an agreement not to sell without the consent of the neighbors.Which statement BEST describes why a neighborhood analysis is important to the informed real estate licensee?It can help determine an estimate of value.

Which is true about restrictive covenants? They are placed by private parties in a deed.An apartment building has a value of $400,000 when capitalized at 6%. What would be the value if the building were capitalized at 8%?

$300,000

Using which of the following would require the value of the land to be calculated separately from the value of the improvements?The cost approach.A tenant leased 3000 square feet at $10 per square foot and 8 % of gross income. The total annual rent she paid was $60,000. What was the gross income on which she paid percentage rent?

$375,000

When appraising a commercial property, the appraiser is most concerned with the income generated by the property.A feature found in a comparable property that is not present in the subject property will result in a a reduction adjustment to the comparable's selling price.The term depreciation refers to theloss of value in real estate from any cause.The economic life of an investment can be described asthe time over which value generated exceeds cost of operation.Economic obsolescence in a property is generally a type of depreciation that is incurable.When an appraiser uses the phrase "effective age," he is referring to the age of the property based upon its condition.The income capitalization approach to value would be most important in the appraisal of a/an office building.Which is the best example of functional obsolescence?Steep, narrow stairway in a 1 3/4 story home.A property was assessed at 25% of value with a tax rate of $12.00 per hundred. If the taxes totaled $11,400, what was the value?

$380,000

When an appraiser correlates the three approaches into a final estimate, he averages the estimate.reconciles the differences according to the type of property being appraised and the quantity and quality of data available.In valuing a single family residence by the comparison approach, an appraiser would make adjustments to the comparable properties.The zoning commission of Jefferson County requires that all new construction in a specific area adhere to a specific type of architecture. What type of zoning is this aesthetic