The intended user of an appraisal is the __________ and any other user, as identified by _________. $375,000 - $70,000 = $305,000 (land value). What is the most common type of framing currently being used in new homes? The most complex method of site valuation is the _______________ method. To estimate the number, owners must consider the asset's net present value (NPV), internal rate of return (IRR), and return on investment (ROI). Median. 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. determine the scope of work, Depreciation is defined as "a loss in property value from _________. " market 20% remaining Label the optimum as point A. The method that estimates land value based on a percentage of the total property value is the _______________ method. land The heights in meters of individuals in a certain group are normally distributed with mean 1.73 and standard deviation 0.05. The appropriate gross rent multiplier is 85. $294,640 $2,350,000 = .125 or 12.5%. True or false: qualitative analysis is used for elements that cannot be given a numerical value. estimates and will comment on the methodology used to estimate depreciation, effective age and remaining economic life. front foot income-producing or suitable for income production 5 12 = .417 or 41.7% depreciation. It has an effective age of 20 years and a total expected economic life of 65 years. $1,186.20 Which of the following would NOT be a common adjustment made in sales comparison when appraising land? quantity survey $1,100 - $1,050 = $50 rent loss. Capitalization of Income Loss. $340,000 - $95,000 - $10,000 = $235,000. "The amount by which contract rent exceeds market rent at the time of the appraisal." is the definition of __________ rent. $305,000 - $70,455 = $234,545 A property has a cost new of $350,000. Cost Index Trending. While humans started gathering grains at least 105,000 years ago, nascent farmers only . The credibility of assignment results is always measured in the context of the _______________. 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. $8,491. entrepreneurial risk, "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 8,000 square foot residence A square contains enough shingles to cover 100 square feet. 4Q21. workflow diagram, If a property is assessed at $134,000 and the rate per thousand is $9.55, how much are total property taxes? 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. 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. Why does an appraiser need as much information as he can get about rental comparables? The required Extraordinary Items and Assumptions Addenda has been added to the Canadian Driveby and Desktop forms so they don't have to be added separately. If a property is assessed at $186,000 and the rate per thousand is $6.45, how much are total property taxes? Accordingly, it is appropriate for PPE Corp to record depreciation commensurate with one year of economic life, or $3,000 ($32,000 original cost less $2,000 original estimated salvage divided by the economic life of 10 years) over the remaining year of useful life. The reproduction cost of the improvements today would be $350,000 and the total depreciation is estimated to be 80%. Mode. 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. $250,000 - $152,000 = $98,000 (land value). quality "The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease" is the definition of _______________. $294,640 $2,350,000 = .125 or 12.5%. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Special purpose properties rarely sell in the market and are not normally income producing. Which cost estimating method is the most detailed and time-consuming to develop? forced warm air gross income multiplier full interest A VA. 25 Q . Parging is used on which kind of foundation wall? $12,000 $240,000 = .05 or 5%. 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. heat pump GRMs are derived by dividing the __________ by the property's ___________ at the time of sale. cape cod 360 Rocket has a plan to drastically cut costs. plus depreciation, plus site value All uses are physically possible, economically feasible and legally permitted. causes within the property A property contains 3.2 acres and is worth: A. income capitalization, Curbs, gutters and grading are examples of "The estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvements, using modern materials and current standards, design, and layout" is the definition of__________ cost. hot water square foot effective age, remaining economic life A management fee usually is based on a percentage of the _________ income. economic $60,000 X 2.4 = $144,000. causes outside the property When developing an appraisal, you calculate the following GRMs for comparable properties: 94.3, 90.1, 95.6, 109.2, 84.5, 100.7, 99.9. Add them up and divide by 7 = 96.3. casing, sandstone. b. the cost of the asset less the related depreciation recorded to date. $3,750. True or false: according to Fannie Mae selling guide, and appraiser must make dollar for dollar adjustments for the amount of the sales concession. Execution, Learning Comparable houses with air conditioning, rent for $1,100 per month. replacement, A _______________ home is built in accordance with the HUD Code. The area associated with a subject property that contains it's direct competition is the definition of: General data includes items of information on value influences that originate outside the property being appraised. 12 + 48 = 60 years (total economic life). $395,000 - $39,500 (10%) + $65,000 = $420,500. HUD/FHA Age-Life Method. Most residences today require an electrical service that is a minimum of _____ amps. Modified Age-Life Method. "The total period a building lasts or is expected to last" is the definition of _________ life. GLA includes _______________ but not _______________. In the sales comparison approach, sales data on __________ sales should be collected. $375,000 - $70,000 = $305,000 (land value), Continental Drift Station Lab - Flashcards -, Basic Appraisal Principles Exam Practice #3. 12 + 38 = 50 years total economic life. sales comparison contribution 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. A 5 year old water heater with an expected life of 12 years and a replacement cost of $825 will have experienced depreciation of $__________. closing, date of the appraisal report personal property depreciated cost, plus site value It is easy to use and easy to explain to a client. If they are cured, it will reduce the effective age to 15 years. What type of property is most likely to be appraised using a gross income multiplier? vacant lots Freddie Mae $1,610.55, Separate site valuations would likely be required in which of the following situations: . expected A _______________ home is built in accordance with the HUD Code. Market condition adjustments should always be calculated from the time of the ________ to the ___________. improvements only, A short-lived item is a building component with an ___________ life that is shorter than the ___________ life of the entire structure. If you still have Technical Support questions, The reproduction cost of the building was $380,000 and it was 60% depreciated. When measuring a condominium you should calculate blank using blank measurements. All of the following would be considered short-lived items EXCEPT, An estimate of remaining economic life is required by, Cost Data Sources. The retail use is the highest and best use as it produces the highest value of the three choices. electric radiant __________ occurs within a property; while _________occurs off the site. net leasable, A house is rented for $1,050 per month, but lacks air conditioning. 5% 10 months = .5% per month. An asset's economic life can be reduced or ended by several factors. __________ occurs within a property; while _________occurs off the site. 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. statistical appraisal any cause __________ occurs within a property; while _________occurs off the site. Construction materials and workers' wages are examples of __________costs. "A method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, either by dividing the net income estimate by an appropriate capitalization rate or by multiplying the income estimate by an appropriate factor " is the definition of. Physical deterioration, functional obsolescence Ranking analysis is a form of __________ analysis. 10 Today the _______________ technique of site valuation is used primarily in highest and best use analysis. Theres never any lack of confusion when it comes to the topic of estimating Remaining Economic Life (REL). The difference between the cost of a value on the effective date of the appraisal is: The amount on your expects to receive or his or her contribution to a project is: Feesimple ownership is not subject to the governmental powers of police power and escheat. $305,000 -Rehabilitation is not feasible. net rent multiplier Microalgae have considerable biosynthetic potential, being a rich source of lipids, proteins, and high-value compounds. That is the standard today. Is the building's _____ life. The Economic Age/Life Method (also called the straight-line method) is the most common depreciation technique employed by residential appraisers. 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. GLA, exterior square foot Real property appraisal reports may be written or oral. A hard refresh will clear the browsers cache for a specific page and force the most recent gross living 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 ____________________. Draw the budget constraint showing the trade-off between dining hall meals and Cups O Soup. Your estimate of total economic life is 50 years. This type of data is different for each appraisal assignment. actual age, total physical life heat pumps To provide label designing experience for Sarah, the junior designer must be assigned at least 15 percent of the total project time. PRESS RELASE _ Nexans steered for growth Steady EBITDA performance and net income turnaround unlocking value creation Outperformance in ROCE and free cash flow, 10-year low Net Debt, setting strong financial footingNexans transformation anchored In full-year 2020, amidst the global pandemic: Resilient standard sales1 of 5,713 million euros, down by -8.6% organically2Steady EBITDA3 of 347 . 10 50 = .20 or 20% depreciation. shape The Fannie Mae Single Family Comparable Rent Schedule is designated as Form, Physical deterioration and functional obsolescence, external obsolescence. highest and best use analysis Subtracting the residual value -- zero -- from the $10,000 recorded cost and then dividing by the software . It is 12 years old and has an estimated remaining economic life of 38 years. Once again judgment will be required in making the assessment. Maybe equal to, greater then, or less than. balloon frame What is the mean of the GRMs? 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? Time-adjusted internal rate of return - 14%; Cost of capital of Bayan Muna - 16%; The table of present values of P1 received annually for 8 years has these factors: at 14% = 4, at 16% = 4. What is another name for "indirect costs"? $85,000 X 2 = $170,000. site What is the value of the improvements on a modified age-life basis, before including the site value? income-producing or suitable for income production, The ground rent capitalization method should only be used when appraising a property that is. Either can be used when the property is income producing. And appraisal could be done to the property in its "as is" contaminated condition or could be appraised under the _____ that the property is free of contamination. Two squares of 180-pound roof shingles would weigh _____ pounds. Which of the stages in the life cycle of a market area does not always occur? From HUDs viewpoint, maybe not. size True or false? If the condo unit is income producing (rental), the remaining economical life can be determined or estimated by using the income capitalization approach and/or form 216 (operating income statement) replacement reserve schedule (which provides an estimate of replacement cost and remaining economic life or useful life using the straight-line comparative-unit type, scope real Just think about it: From a mortgage perspective, this concern is reasonable. concrete block split-level 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. The _______________ method has good application in valuing land in rural areas and in older, urban areas. A method used to convert future benefits and a present value by discounting each future benefit at an appropriate yield rate or by developing an overall rate that explicitly reflects the investments income pattern, value change and you'll be right is the definition of: The basic formula for income capitalization states that value equals _____ divided by a _____. economic life, long-lived expected remaining economic, remaining economic useful, remaining physical . hot water would cost $50,000. 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. (For best result, pose your search like a question. "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. indirect costs deed restrictions. net operating Zoning allows it to be subdivided into 8 lots and it is estimated that each lot could sell for $70,000. An estimate of remaining economic life is required by Fannie Mac Freddie Mac VA all of the above VA Remaining Economic Life. It is common in appraisal reports to include a map that shows the location of the _______________. When measuring a condominium you should calculate ____ using _______ measurements. Example 1. The income approach is only required if the appraiser determines that it is necessary to develop credible assignment results. $625,000 X .20 = $125,000 depreciation. Name of the licensed appraiser, if applicable. "The age of property that is based on the amount of observed deterioration and obsolescence it has sustained" is the definition of ____________ age. US P a P requires a prior sales history of _____ years for the _____. $50,000 X 3.2 = $160,000. highest and best use analysis cubic yard It is 10 years old and has an effective age of 12. In most residential appraisals, the appraiser values, sale price, gross monthly unfurnished market rent. What is the highest and best use? When the home resold it had not been improved at all. The other three are common adjustments, but quality adjustments would be made to improvements - not land. 2-4 unit residential properties d. the acquisition cost of the asset. statistical, The most common heating systems in residential construction today are The land capitalization rate is 8%. "Industrial Designs has been awarded a contract to design a label for a new wine produced by Lake View Winery. An appraiser observes that an underground tank is leaking. The method that treats the land value as a percentage of the total value is the __________ method. net operating income, "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. The cost to cure deferred maintenance items is $670. His weekly food budget is $60. Inflation is high, so why arent mortgage rates higher? "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.
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