A house is rented for $1,050 per month, but lacks air conditioning. the following required inspection based on the extraordinary assumption that the condition or deficiency does not require alteration or repair: R E C O N I L I A T I O N Based on a complete visual inspection of the interior and exterior areas of the subject property, defined scope of work, statement of assumptions and limiting yield capitalization A ___________ home has a permanent steel chassis, wheels and axles. reliable Which term best describes her ownership interest in the property? Multiply the Cost of the Long-Lived Items by the depreciation percentage: $191,760 X 24% = $46,000. . report the final opinion of value It is 10 years old and has an effective age of 12. Which is the highest and best use? Which of the following would NOT be a common adjustment made in sales comparison when appraising land? An appraisal prepared for REO purposes, loan servicing consideration, or any Comparative-Unit Method - Market Derivation. subject property assessment Appraisal fees are examples of _______________ costs. cost overvalued, When measuring a condominium you should calculate ____ using _______ measurements. hypothetical condition Early ductless heating systems were called, "An element of comparison in the sales comparison approach; comparable properties can be adjusted for differences in the motivations of either the buyer or a seller in a transaction" is the definition of, "Details about the property being appraised, comparable sale and rental properties, and relevant local market characteristics" is the definition of, 8 X $50,000 = $400,000. Most residences today require an electrical service that is a minimum of _____ amps. all data that is needed to produce a credible appraisal, An expansion tank is part of a ___________ heating system. income capitalization, Curbs, gutters and grading are examples of For appraisals prepared using the UAD, quality of construction for the subject and comparables is rated using: The Fannie Mae URAR form is designed to report an appraisal of: An appraisal of which of these types of properties would not be reported using the Fannie Mae URAR form? Over which improvements contribute to real property value is the definition of: A new building is expected to remain standing for eight years. 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. "Improved land or a lot in a finished state so that it is ready to be used for a specific purpose". Appraisal regulatory agencies state that one of the problems with the allocation method is: The extraction method of sight valuation typically has good applicability an older urban areas. The first step in the valuation process is, All of the following could be sources of general data EXCEPT. fee simple 12 + 48 = 60 years (total economic life). cost ), the report date (Date Reported), and the name of the subdivision (Subdivision). Which time deterioration is considered to be curable? $625,000 - $125,000 = $500,000. How much income does yield capitalization use? The cost approach formula states that reproduction or replacement cost new _______________, _______________ equals property value. If an appraiser uses three comparable sales and the sales comparison approach: Land residual and ground rent capitalization. Once bedrock is reached, the sides of drilled hole in the rock serves as a casing, to prevent collapse. $2,106. A house cost $395,000 to build new. forced warm air. cost new, minus land value Footings should be ________ as wide as the ____________. 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. Mode. Segregated cost method is another name for the blank method. $1,000,000, $250,000; Residential Income Approach. The method that treats the land value as a percentage of the total value is the __________ method. land residual and ground rent capitalization Besides properties that have recently sold, other value . With you and capitalization the overall value is estimated by adding together the _____ and the _____ of the reversion of capital. That defines yield capitalization - discounting of future cash flows. required data credible The manufactured home construction and safety standards is also known as the: Ranking analysis is a _____ method for estimating site value. land residual and ground rent capitalization quality Due to other project commitments, Lisa has a maximum of 50 hours available to work on this project. 5 12 = .417 or 41.7% depreciation. The reproduction cost of the improvements today would be $350,000 and the total depreciation is estimated to be 80%. A single parcel is valued at $450,000. Construction materials and workers' wages are examples of __________costs. $197,450 2,448 = $80.66, "The type of data and the extent of research and analyses" is the definition of. Center, Apps An estimate of remaining economic life is required by Fannie Mac Freddie Mac VA all of the above. statistical appraisal Yes, it is required by VA and FHA. scope of work $50 X 85 = $4,250. Keyways are employed in which type of foundation walls? sales comparison $340,000 - $95,000 - $10,000 = $235,000. His weekly food budget is $60. Freddie Mae net operating The land capitalization rate is 8%. GRMs are derived by dividing the __________ by the property's ___________ at the time of sale. estimate land value What type of framing became popular in the 1800s with the advent of the steam-powered sawmill? It has an effective age of 20 years and a total expected economic life of 65 years. Income can be capitalized into value by dividing by a _____ or multiplying by a _____. estimate land value Condos in your market area sold for a median price of $195,320 twelve months ago and the median price of condos for the current month is $219,540. contradiction, Which type of valuation analysis would typically NOT include a separate site valuation? A 5 year old water heater with an expected life of 12 years and a replacement cost of $825 will have experienced depreciation of $__________. land residual and subdivision development income-producing or suitable for income production, The ground rent capitalization method should only be used when appraising a property that is. The fair value of the car was $15,000 at commencement of the lease. "The total period a building lasts or is expected to last" is the definition of _________ life. definition of value $98,000 $1,100 - $1,050 = $50 rent loss. 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. 12 60 = .20 or 20% depreciation. Depreciation is a loss - and it could be from any cause. It is common in appraisal reports to include a map that shows the location of the _______________. Materials that transfer energy quickly are called __________ and those that transfer energy slowly are called __________. $2,980 "The anticipated income from all operations of the real estate after an allowance is made for vacancy and collection losses and an addition is made for any other income" is the definition of ____________ income, A partial estate could be created by the existence of all the following EXCEPT. The result of a _____ test will determine if there is suitable drainage and the size of the drainfield that will be required for a septic systems: What is the most common type of framing today? type, scope Two squares of 180-pound roof shingles would weigh _____ pounds. Deferred maintenance is a physical form of depreciation, Functional obsolescence could be caused by all of the following EXCEPT, one-unit property Which site valuation methods should only be utilized when the subject property is income-producing by nature? $305,000 - $70,455 = $234,545. $305,000 X .231 = $70,455. $2,042. What is the depreciated value of the improvements by the age-life method, before including the site value? version of a page. 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. GLA includes _______________ but not _______________. condominium market Cost Index Trending Solution. $4,750 The company will use the straight-line method to report the amortization of the software. Do you think the total benefits outweigh the total costs, or vice versa? $350,000 - $45,000 = $305,000. An asset's economic life can be reduced or ended by several factors. Remaining Economic Life (REL) AND Remaining Useful Life is the difference between Economic Life and Effective Age. cost approach The _______________ method has good application in valuing land in rural areas and in older, urban areas. personal opinions The most common type of framing in residential construction today is. __________ refers to uncontrollable sleeping that occurs for short periods while a person is awake. The Remaining Economic Life of an improvement is the total economic life minus its effective age. 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. . vacant lots 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 ____________________. retrospective To make sure that accurate and appropriate comparisons are made. What amount should be shown in Carson's balance sheet at December 31, 2007, net of accumulated depreciation, for this machine? By the capitalized value method, how much is the depreciation attributable to the lack of air conditioning? heat pump land residual All of the following would be considered short-lived items EXCEPT, An estimate of remaining economic life is required by, Cost Data Sources. 5,000 acre ranch The ground rent capitalization method is most applicable to appraising a ______ interest. cost new, plus site value, Appraisal fees are examples of _______________ costs. replacement cost entrepreneurial incentive- expected profit. depreciated cost, plus site value investment tenancy in common The duplex produces the highest value ($170,000), Overall Capitalization Rate (RO). According to the EPA, blank systems are the most energy efficient, environmentally clean, and cost-effective space conditioning systems available. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people to live in cities. $560,000 - $65,000 = $495,000. How do you transition from QC defense to offense in 2023? possesses sufficient remaining economic life to warrant a long-term mortgage, assuming a reasonable level of continued maintenance. The appropriate gross rent multiplier is 75. Short lived items Cost is $20,000 and depreciation on the short lived items has been identified totaling $4,850. He weighs are employed in which type of foundation walls? $250,000 - $152,000 = $98,000 (land value). A square contains enough shingles to cover 100 square feet. "The actual or anticipated net income that remains after all operating expenses are deducted from effective gross income but before mortgage debt service and book depreciation are deducted" is the definition of, "Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat" is the definition of, Soil maps produced by the Natural Resources Conservation Service are based on, The SCOPE OF WORK RULE says that in each real property appraisal assignment, the appraiser must _______ the problem to be solved, and determine and perform the scope of work necessary to develop ________ assignment results. To estimate the number, owners must consider the asset's net present value (NPV), internal rate of return (IRR), and return on investment (ROI). market conditions Right-of-use asset $406,213 Lease liability $331,213 Cash $ 75,000 The lease has been categorized as an operating lease, and the entity has determined that its total fixed rent to be $475,000 ($500,000-35,000+10,000) Therefore, on an annual basis, it will recognize $95,000 of fixed rent expense. soft Which cost estimating method is the most detailed and time-consuming to develop? cubic yard If they are cured, it will reduce the effective age to 15 years. 10-9 A graduate of an engineering economy course has complied the following set of estimated costs and salvage values for a proposed machine with a first cost of $15,000; however, he has forgotten how to find the most economic life. $299,500. 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. The first step in the valuation process is: An appraiser counters an underground Storage tank. Draw the budget constraint showing the trade-off between dining hall meals and Cups O Soup. mortgage rates All uses are physically possible, economically feasible and legally permitted. Architectural and engineering fees are examples of _____________ costs. $350,000 X .2 = $70,000 (current building value). Hourly wage rates are $30 for Lisa,$25 for David, and $18 for Sarah. J-bolts are used to anchor the _________ to the __________. Which type of valuation analysis would typically NOT include a separate site valuation? The HUD handbook states that the useful life of a building has come to an end when: -The building can no longer produce annual income or services sufficient to offset maintenance expense, insurance and taxes to produce returns on the value of the land. Remaining Economic Life Change Date February 22, 2019 This Chapter has been revised in its entirety. An estimate of remaining economic life is required by: Fannie Mac Freddie Mac VA Add them up and divide by 7 = 96.3. brownfield, "The amount an entrepreneur expects to receive for his or her contribution to a project" is the definition of Which of these items is not required by Fannie Mae to be included as an exhibit in an appraisal report? replacement, A _______________ home is built in accordance with the HUD Code. A structure that is sound and in good physical condition with many years of physical life remaining may have reached the end of its economic life - if its remaining years of physical usefulness will not be profitable. And what type of heating system would you find an expansion tank? 2-4 unit residential properties Which of the stages in the life cycle of a market area does not always occur? $252,000 - $240,000 = $12,000. Gross Rent Multiplier Analysis. Add them all up and the net adjustment is the difference between the total positive and negative adjustments - in this case +$10,000. An estimate of remaining economic life is required by A VA. economic The appraiser estimates that $61,000 of income is attributable to the building. Yes, it is required by VA and FHA. assessment rolls Does it go far enough? You examine a construction contract to build a 2,448 square foot house and the total cost is $197,450. Today the _______________ technique of site valuation is used primarily in highest and best use analysis. highest and best use analysis effective, The most complex method of site valuation is the _______________ method. Because Lisa has worked on several projects for Lake View Winery, management specified that Lisa must be assigned at least 40 percent of the total number of hours assigned to the two senior designers.
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