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Unit 19: Appraisal
Question / Answer
| Question | Answer |
|---|---|
| Which of these is NOT a federally regulated transaction? A) Purchase of home B) Financing a Car C) Leasing a Home D) Renting a Home | D) Renting a Home Renting a home does not require a federal financial institution or regulatory agency. |
| True or False A business cannot be certified as an Appraiser. | True Only individuals can be certified as appraisers |
| How long must an appraiser retain an original copy of contracts engaging his services and all reports that were completed? A) 2 years B) 5 years C) 1 year D) Depends on property type | B) 5 years Note: or 2 years after final disposition of any judicial proceeding in which testimony was given (whichever is longer) |
| Which of the following must an appraiser retain copies of for a specified period of time? A)Reports used to meet experience requirements during pre-licensing B)Checks for services rendered C)Logs of escrow money received D)Referrals for business | A)Reports used to meet experience during pre-licensing |
| In which type of property value analysis is an appraiser likely not to do an in-depth analysis of the property's interior? A) Broker's Price Opinion B) Appraisal C) CMA D) Real Estate Analysis | A) Broker's Price Opinion |
| True or False The market value is the the average price of similar homes that have been sold in the neighborhood. | False Market value is the most probable price that a property should bring in a fair sale. |
| The actual price that a property sells for is called: A) Market Value B) Cost C) Market Price D) Fair Market Price | C) Market Price |
| Using the straight line method, estimate the value of a $300,000 property in 10 years, if the land value is $75,000 (remaining value is for improvement on land), and economic life is expected to be 60 years. | $225,000/60 years = $3750 (Depreciation per year). After 10 years, the property would depreciate $3750x10= $37500. $225,000 - 37,500 = $187500 Add the land value of $75000 to $187,500 to obtain value in 10 years after depreciation = $262,500 |
| A property is producing an annual net income of $15,000 and is sold for $187,000. What is the capitalization rate? | 8% Income/Value = Rate of capitalization |
| Determine the Gross Rental Multiplier of a property that sold for $280,000 and had a gross monthly rent of $1800. | GRM=155.55 Multiplier = Value /Rent |
| An appraiser uses the cost of replacing a building in today's market to determine the value of the property. Which method is he is using? A)Sales Comparison B)Cost Method D) Income Method D) Gross Income Multiplier Method | B) Cost Method |
| Which is NOT a method that can be used to estimate the cost of construction to replace or reproduce a building: A)Unit in Place B) Square Foot Method C) Index D) Straight Line Method | D) Straight Line Method This method is used to determine depreciation |
| Which is typically NOT contained in an appraisal report A)Appraiser |
Created by:
Asimon0722
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