The air cavity between windowpanes is it insulated with this gas: And electricity, voltage measures ____ while amperage measures _____. replacement cost, minus external obsolescence any cause 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. The reproduction cost of the building was $380,000 and it was 60% depreciated. Aurora extends the Better.com merger deadline once again, Real estate agents wonder if inventory levels will ever return to normal, Optimizing client engagement and communication in 2023, Shared Equity: A required intervention for home affordability. sales comparison buildable if they are cured, it will reduce the effective age to 15 years. 20% remaining Two squares of 180-pound roof shingles would weigh _____ pounds. A comparable new house just sold for $340,000. Keyways are employed in which type of foundation walls? The first step in the valuation process is The storage facility is near Hamford's main factory and will be remodeled by CTF to meet its requirements. $754,200 X 1.51 = $1,138,842. 11 (Reconcilia, FL Trainee Appraiser - Ch. The duplex produces the highest value ($170,000). The summation approach is another name for the _______________ approach. The basic principle underlying the cost approach is the principle of ____________. A lender may deny a loan application for the purchase of a property with an FHA guaranteed mortgage if the property has little economic life remaining. condominium. The income approach is only required if the appraiser determines that it is necessary to develop credible assignment results. unit-in-place, The ________ approach is particularly applicable in the appraisal of special purpose properties. tenancy in common An appraiser must not allow the intended use of an assignment or a client's objectives to cause the assignment results to be __________. 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 . owner of record $825 X .417 = $344.03. A property contains 3.2 acres and is worth: A. $294,640 $2,350,000 = .125 or 12.5%. effective, The most complex method of site valuation is the _______________ method. The total remaining economic life of a home is calculated by subtracting the effective age of the home from its total economic life. net rent multiplier 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. All rights reserved. The subject is a 15 year old duplex that would cost $240,000 to build new today. builder's profit What is its indicated value by the cost approach? -Rehabilitation is not feasible. Which type of depreciation occurs off the site? The firms three graphic designers available for assignment to this project are Lisa, a senior designer and team leader; David, a senior designer; and Sarah, a junior designer. contract, closing date, contract, effective date of the appraisal, The cost estimating method most commonly used by residential appraisers is the ____________ method. any of the above, A one-and-a-half-story house is commonly known as a identification of the property rights $8,491. Comparable houses with air conditioning, rent for $1,100 per month. 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 Cost Data Sources. In a period of uncertain economic conditions, the estimation of a capitalization rate becomes more difficult . 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. excess, Which entity produces the most commonly-used land appraisal report form? electric radiant, "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 Architectural and engineering fees are example of blank costs. unemployment rates Cost Approach Using Age- Life Method. Roof Covering. Site by, The new, must-have technology thats tackling lendings greatest challenges. Hot Water Heat. That is an instance where the cost approach has good applicability. What is the land value? Gross Rent Multiplier Analysis. The appraiser should compare its estimate of the improvements' remaining economic life with the The easiest and best support is an analysis of demolitions. Market conditions adjustment to comparable sale should always be calculated from the time of the _____ to the _____. Cost Approach Formula. ranch $299,500. 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. Once we have the effective age, we can calculate the remaining economic life of the home. $350,000 - $45,000 = $305,000. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. $235,000 2,030 = $115.76. Cost Index Trending. hot water retrospective Today the _______________ technique of site valuation is used primarily in highest and best use analysis. Short-Lived Depreciation. mass appraisal, An appraisal with an effective date at some point in the future is called a(n) ___________ appraisal. The method that treats the land value as a percentage of the total value is the __________ method. reverse capitalization Inflation is high, so why arent mortgage rates higher? An estimate of remaining economic life is required by: Expected remaining economic, remaining economic. Quick Start; Products. contract, effective date of the appraisal Why does an appraiser need as much information as he can get about rental comparables? The new machine has an estimated useful life of nine years and the salvage value was estimated to be $75,000. 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. taxable income All of the following could be sources of specific data EXCEPT. Which entity produces the most commonly used land appraisal report form? The land capitalization rate is 8%. 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 The most common type of framing in residential construction today is. there are curable items totaling $45,000. Its remaining economic life is estimated to be 48 years. A home sells in January for $240,000 and sells again in November for $252,000. The cost approach is most applicable in situations where the site value is not well supported. What is the indicated cost new of the building today? The reproduction cost of the improvements today would be $350,000 and the total depreciation is estimated to be 80%. ordinary assumption $919.90 personal property income capitalization both general and specific data It is worth $450,000 as it is in one parcel. The relationship or ratio between the sale price or value of a property and it's periodic gross rental income is the definition of: Modular homes are constructed to meet blank requirements. What was the cost per square foot? effective gross income The most common brownfield contaminant is. scope of work An appraiser uses five comparable sales, and gets a differing indication about you from each one. The Remaining Economic Life is the estimated number of years that an improvement will continue to contribute to property value. 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. An appraiser has value to subject property at $320,000. By the capitalized value method, how much is the depreciation attributable to the lack of air conditioning? Gross building area (GBA) is used as a unit of measurement: True or false: it a residential appraisal, the comparable sales must always be located in the same market area As the subject. All 3 I purchased a value must be used in every real property appraisal. anticipation property tax rates, When describing roofing shingles, a "square" contains __________ square feet. Statistical analysis will be of little use. Actual age of property is 11 years. extraction and allocation. Hourly wage rates are $30 for Lisa,$25 for David, and $18 for Sarah. leased fee estate, The URAR sales comparison grid requires you to enter in the _________ age of the subject property and comparables. FY21. Physical deterioration and functional obsolescence, external obsolescence. split-entry, "Real property for which the expansion, redevelopment, or reuse of the real estate may be complicated by the presence of environmental contamination that needs to be remediated to appropriate regulatory standards " is the definition of Soil mass produced by the natural resources conservation services are based on: A factory built house constructed in compliance with the standards of the applicable region, state or local building code is a blank home. plus depreciation, plus site value Which is the highest and best use? When it cannot do what it is required to do . Items of information on value influences that derive from social, governmental, and environmental forces and originate outside the property being appraised is the definition of: An appraisal with an affective date at some point in the future is called a or an blank appraisal. index 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. Conversely, if an entity leases a forklift, with an economic life of five years, for a term of four years and option for an additional four year term, the entity might conclude that it was unlikely to exercise the option due to the remaining life of the asset. Whaling is the hunting of whales for their usable products such as meat and blubber, which can be turned into a type of oil that became increasingly important in the Industrial Revolution.It was practiced as an organized industry as early as 875 AD. depreciated cost, plus site value subdivision development. True or false: expense ratio information is easier to obtain on single unit residential properties than commercial properties. The remaining economic life is used in the Age-life Method of estimating depreciation. 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 _____. In your sales comparison grid, you made adjustments of +$5,000, +$3,500, -$2,500, + $8,000, and -$4,000. effective date of value That is used in a hot water system; as water expands as it is heated. leased fee interest $1,186.20 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. It has an effective age of 20 years and a total expected economic life of 65 years. Execution, Learning The reproduction cost of the building was $380,000 and it was 60% depreciated. A house is rented for $1,050 per month, but lacks air conditioning. 180 (108.8 + 109.8) 2 = 109.3. Each appraisal report must contain two dates, the _____ and in the _____. anticipated, economic life, expected remaining economic, remaining economic, Developers often value land on a basis of price per capacity life, physical life, economic life). What is the indicated reproduction cost of the building today? Appraisers are cautioned to identify the exact _______________ of market value, and its _______________, applicable in each appraisal completed for the purpose of market value. The estimated economic life is 40 years, hence after 40 years the value of the house would be 0. Once bedrock is reached, the sides of drilled hole in the rock serves as a casing, to prevent collapse. When the home resold it had not been improved at all. all of the above, Fannie Mae says the appraiser must base his or her analysis and any adjustments to comparable sales on (For best result, pose your search like a question. J-bolts are used to anchor the _________ to the __________. Just think about it: From a mortgage perspective, this concern is reasonable. A single parcel is valued at $450,000. Prepare a bank reconciliation to calculate the correct ending balance . 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. Asset wear, degradation, or damage reduces an asset's economic life. income-producing or suitable for income production 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. If a cost manual is used, the result is _____________ cost. "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. actual age, total physical life Which of the following would NOT be general data? "The estimated period over which existing improvements are expected to contribute economically to a property; an estimate of the number of years remaining in the economic life of a structure or structural components as of the effective date of the appraisal; used in the economic age-life method of estimating depreciation." Effective The URAR form can be used to report the appraisal of which of the following property types? prospective The term of the non-cancelable lease is 3 years with no renewal or bargain purchase option. list the data needed "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. An appraisal prepared for REO purposes, loan servicing consideration, or any The fair value of the car was $15,000 at commencement of the lease. deed restrictions The cost to cure deferred maintenance items is $670. $305,000 - $70,455 = $234,545 A property has a cost new of $350,000. Percolation tests are done to test the drainage capacity of soils. indirect costs Consider this scenario: On January 1, 2015, Hamford Productions Inc. and CTF Leasing signed an 11-year lease agreement for a storage facility with an estimated remaining economic life of 15 years and a final salvage value of $60,000. 109.2 - 84.5 = 24.7. Which cost estimating method is the most detailed and time-consuming to develop? "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. Susan owns a home on leased land. general data only Depreciation was computed on the sum-of-the-years'-digits method. Subdivide it; 8 X 70,000 = $560,000. Building permits and Worker's Compensation are examples of blank costs. Zoning allows it to be subdivided into 8 lots and it is estimated that each lot could sell for $50,000. income capitalization, Curbs, gutters and grading are examples of What are the three general types of depreciation? Extraction Method. Which cost estimating method is the most detailed and time-consuming to develop? . ANSI VA 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. It is 10 years old and has an effective age of 12. 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. From an appraisers perspective, the REL is part of a simple calculation used to estimate depreciation for the cost approach. FY22. casing, bedrock A well-maintained property has a low effective age and a high REL, whereas a property in disrepair will have a high effective age and a low REL. contract, effective date of the appraisal. tenancy by the entirety, The most common unit of comparison for land in rural areas is price per _______. $50 X 75 = $3,750. 2) the service to be provided (material handling) is required forever. topography. Qualitative Methods. An estimate of remaining economic life is required by: Fannie Mac Freddie Mac VA The cost index at that time was 138.5. cost/benefit front foot By the 16th century, it had risen to be the principal industry in the Basque coastal regions of Spain and France. It changes due to market conditions and the building's overall maintenance. And upon comparative analysis, and appraiser may employ: The quantitative adjustments are usually performed first. physical, "The relationship or ratio between the sale price or value of a property and its gross annual rental income" is the definition of Economic life of equipment - 8 years. Estimated Remaining Economic Life of this property is . 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 ____________________. -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. The heights in meters of individuals in a certain group are normally distributed with mean 1.73 and standard deviation 0.05. "The age of property that is based on the amount of observed deterioration and obsolescence it has sustained" is the definition of ____________ age. type, definition Remaining Economic Life Change Date February 22, 2019 This Chapter has been revised in its entirety. What is the mean of the GRMs? Documentation necessary to support an appraiser's analysis, opinions, and conclusion is the appraisers: What appraisal term is defined as the type and extent of research and analyses and an assignment? Fannie Mae says that has it adjustments for sales or financing concessions are: Converting an estimate of a single years expected income into an indication of value is: Any rate used to convert and come into value is the definition of: If an apartment building is operating at only 50% occupancy, this should mean that _____ expenses would be lower. And what type of heating system would you find an expansion tank? What is the land value? A property has a cost new of $350,000. What is the indicated adjustment for change in market conditions, per month? $350,000 X .2 = $70,000 (current building value). The number of years that have a lab since the building was constructed is it's: Effective age is the same as chronological age. "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. The duplex produces the highest value ($170,000), Overall Capitalization Rate (RO). If a property is assessed at $186,000 and the rate per thousand is $6.45, how much are total property taxes? An appraiser is using both quantitative and qualitative adjustments and their sales comparison approach. What is another name for "indirect costs"? In highest and best use of analysis, which criterion is applied last? Fannie Mae states that in calculating the gross living area of a detached home, the appraiser must use blank measurements. If Remaining Economic Life is 40 years, the market is paying 67% of replacement cost (40 / 60). statistical, The most common heating systems in residential construction today are However, this method does not consider individual short-term items like the An entrepreneur is taking on a development project, and by his calculations, he expects to receive a 25% return on his investment in the project. Market condition adjustments should always be calculated from the time of the ________ to the ___________. pH The right-of-use asset is equal to the lease liability plus the $500 rent paid on the lease commencement date ($16,518). The physical life of a property can be well over 60 years depending . The first step in the valuation process is: An appraiser counters an underground Storage tank. The most commonly used land appraisal report form: And improved property has a net operating income of $75,000. Visit Selling and Servicing Guide Communications and Forms. 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. shape Example (remaining life): service level/capacitylife - 3 breaks, estimated 2 years to next break (no more than 4 breaks in 5 years) . That is the most complex and involves discounted cash flow analysis. Each of these is a variable expense EXCEPT. define the problem Cost Index Trending Solution. List three prohibited nonaudit services that are considered management responsibilities. That is what builders are concerned about - how many building lots can I get, Developers often value land on a basis of price per. HUD [Name] Number of years remaining of economic life for the property. However, to fully understand REL and how users like HUD employ this information, we also need to consider the following: -PHYSICAL LIFE The total period a building lasts or is expected to last -ECONOMIC LIFE The period over which improvements to real property contribute to property value. contribution When an asset is no longer useful to its owner, then it is said to be past its economic. $395,000 - $39,500 (10%) + $65,000 = $420,500. Functional obsolescence, physical deterioration indirect __________ occurs within a property; while _________occurs off the site. $305,000 $250,000 - $152,000 = $98,000 (land value). it was built in 2010. . sales comparison qualitative The most common unit of comparison for land in rural areas is price per _______. "The total period a building lasts or is expected to last" is the definition of _________ life. The range is the difference between the high and the low. It is a generic form, The summation approach is another name for the _______________ approach. $85,000 per unit as a site for a duplex and C. $60,000 per acre as a retail site. "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. The remaining economic life of the car is 3 years, and it is expected to have no residual value at the end of the lease term. investment would cost $65,000. balloon frame Yes, it is a qualitative method. 1 - Radon, Mold, a, FL Trainee Appraiser - Ch. Given how high inflation is right now, why arent mortgage rates even higher? $126,000 $1,200 = 105. life estate In short, it is a quick and easy way to estimate straight-line physical depreciation. Which term best describes her ownership interest in the property? A property contains 2.4 acres and is worth: A. Estimated useful life = % remaining physical life = 1.0 - % physical life consumed . greenfield vacant lots Rocket has a plan to drastically cut costs. Economic Age-Life Method C The economic age-life method is a quick and easy method to apply and may be used in form reports to give an estimate of the buildings depreciated value. Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, Alexander Holmes, Barbara Illowsky, Susan Dean, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams. To accomplish this, HUD suggests the appraiser consider: -How the property fits into its surroundings -Trends in the neighborhood -The physical condition of the property. hypothetical condition Determine Cost of Long-lived Items by subtracting deferred maintenance and short lived items Cost from total replacement cost: $212,340 - $670 - $20,000 = $191,670. $654,200 X 1.60 = $1,046,720, When appraising a duplex, an appraiser should use __________ area. Footings need to be _______________ below average frost penetration levels. GRMs are derived by dividing the __________ by the property's ___________ at the time of sale. The difference tween the cost of an improvement and its market value on the effective date of an appraisal is: Depreciation is defined as a loss in property value from: A 10-year-old home will always have this: The. 201.8 133.6 = 1.51. mortgage rates What type of framing became popular in the 1800s with the advent of the steam-powered sawmill? Not enough information to determine, Which of the following would NOT be a common adjustment made in sales comparison when appraising land? A property sold for $2,350,000. Fannie Mae does not have any requirements related to the remaining economic life of the property. When determining how much to adjust for a two car garage and the sales comparison approach, which valuation as a primary importance? when it is necessary for credible results. causes outside the property What is the highest and best use? definition, authority new gross rent multiplier. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. An appraisal Report must contain sufficient information to allow _____ to understand the scope of work. Overall Capitalization Rate (RO). 5,000 acre ranch useful, anticipated Parging is used on which kind of foundation wall? The manufactured home construction and safety standards is also known as the: Ranking analysis is a _____ method for estimating site value. Modified Age-Life Method. The second phase of the neighborhood lifecycle is: True or false: an appraiser can adjust the comparable sale to account for differences and the motivation of the buyer or seller in the transaction. A dwelling has a reproduction cost of $625,000. 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. That is more than its present value. What is the estimated land value? subject property assessment What is its unit cost? determine the scope of work, Which would NOT be a form of concurrent ownership? useful land residual and subdivision development This type of data is different for each appraisal assignment. Government Auditing Standards identify nonaudit services that can potentially impair auditor independence. 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. Multiple listing services can be utilized for gathering _______________. depreciated cost The retail use is the highest and best use as it produces the highest value of the three choices. The simplest quickest and least accurate method of estimating costs is the _____ method. cost new, minus land value risk rate The other three are common adjustments, but quality adjustments would be made to improvements - not land. A method of estimating land value in which the depreciated cost of the improvements on the improved property is calculated and deducted from the total sale price to arrive at an estimated sale price for the land is the definition of the blank method of sight valuation.
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