Yes, it is required by VA and FHA. "The age of property that is based on the amount of observed deterioration and obsolescence it has sustained" is the definition of ____________ age. yield capitalization $87,500 The appropriate gross rent multiplier is 75. 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. Appraisers are cautioned to identify the exact _______________ of market value, and its _______________, applicable in each appraisal completed for the purpose of market value. 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. It is easy to use and easy to explain to a client. 5,000 acre ranch Soil maps produced by the natural resources conservation service or based on: If an appraiser uses a cost manual to estimate cost new for a property, the result is: The summation report is another name for the blank approach. What is the amount of long-lived depreciation attributable to the building? An estimate of remaining economic life is required by: Expected remaining economic, remaining economic. risk rate prospective A single parcel is valued at $450,000. 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 Which sounds are identified by FEMA a special flood hazard areas? land residual 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 The most common unit of comparison for land in rural areas is price per _______. quality Who wants to make a 30-year mortgage on a residential property if the physical structure isnt expected to last more than 20 years? cubic yard 5 12 = .417 or 41.7% depreciation. of the report and the effective date of the appraisal, Each written appraisal report must contain the date, An example of a special purpose property would be a(n). $375,000 - $70,000 = $305,000 (land value). "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 Is the building's _____ life. If you have additional questions, Fannie Mae customers can visit Ask Poli to get entrepreneurial profit, Building permits and worker's compensation are examples of __________costs. (Requirements No. quantity survey The total remaining economic life of a home is calculated by subtracting the effective age of the home from its total economic life. 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. The reproduction cost of the improvements today would be $350,000 and the total depreciation is estimated to be 80%. When the property being appraised is a one-family property that will be used as an investment property, Fannie Mae requires that the appraiser must prepare a ______________. mass appraisal, An appraisal with an effective date at some point in the future is called a(n) ___________ appraisal. condominium. easements Functional obsolescence, physical deterioration physical, "The relationship or ratio between the sale price or value of a property and its gross annual rental income" is the definition of "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. personal property 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. This is an example of _____ adjustment. causes outside the property cash equivalency, "Expenditures or allowances for items other than labor and materials that are necessary for construction, but are not typically part of the construction contract" is the definition of Site development costs (sewer, grading, road, etc.) It has a land area of about 2,150,000 km2 (830,000 sq mi), making it the fifth-largest country in Asia, the second-largest in the Arab world, and the largest in Western Asia. Quick Start; Products. market conditions 1 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. The company will use the straight-line method to report the amortization of the software. Cost Index Trending Solution. Keyways are employed in which type of foundation walls? What is another name for "indirect costs"? Some highly desirable areas can have older residential structures that are well maintained and in good condition. 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 "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. Required: 1. $50 X 85 = $4,250. b. the cost of the asset less the related depreciation recorded to date. Microalgae represent a promising solution in addressing the impacts associated with the current agricultural and manufacturing practices which are causing irreparable environmental damage. Which cost estimating method is the most detailed and time-consuming to develop? 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 A square contains enough shingles to cover 100 square feet. Determine depreciation percentage by diving effective life by total economic life: 12 / (12 + 38 = 50) = 24%. 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 ____________________. The company estimates that 150 hours will be required to complete the project. direct capitalization According to the EPA, blank systems are the most energy efficient, environmentally clean, and cost-effective space conditioning systems available. expected Which site evaluation methods should only be utilized when the subject property is income producing thing by nature? The . 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. Which would not be an example of a sales or financing concession-when the seller: The total adjustment to each comparable sale price calculated in absolute terms is the definition of _____ adjustment. The appraiser estimates that $61,000 of income is attributable to the building. What is the indicated value of the subject site by the allocation method? Age-Life Method. 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. The cost index at that time was 138.5. retail stores, Basic Appraisal Procedures Ch. The primary difference between GRM and GIM is that: USPAP says that an appraiser must correctly come feet research and analysis necessary to produce a blank appraisal. 186 (thousands) X $6.45 = $1,199.70. The reproduction cost of the improvements today would be $350,000 and the total depreciation is estimated to be 75%. valuation process information from other Fannie Mae published sources. yield rate, The cost approach formula states that reproduction or replacement cost new _______________, _______________ equals property value. concrete block $235,000 2,030 = $115.76. The fair value of the car was $15,000 at commencement of the lease. financing cape cod For the most part, this confusion centers on the misunderstanding that REL is reflective of the number of years a physical structure is expected to last. one unit residences That is the standard today. The basic principle underlying the cost approach is the principle of ____________. Platform Framing. Short lived items Cost is $20,000 and depreciation on the short lived items has been identified totaling $4,850. 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 _____. 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. contract, closing date, contract, effective date of the appraisal, The cost estimating method most commonly used by residential appraisers is the ____________ method. The capitalization rate indicated by sale is ____%. Princess Victoria, the fourth daughter of the King, has undergone an operation for appendictis. Besides properties that have recently sold, other value . $85,000 per unit as a site for a duplex and C. $60,000 per acre as a retail site. 180 J-bolts are used to anchor the _________ to the __________. ground rent capitalization a. $294,640 $2,350,000 = .125 or 12.5%. By extraction, what is the value of the land? The cost approach is most applicable in situations where the site value is not well supported. Here is a definition and an example of how to calculate depreciation using the Economic Age/Life Method.. 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 method that estimates land value based on a percentage of the total property value is the _______________ method. Which of the following would NOT be general data? A municipality assesses property at 100% of value. 201.8 133.6 = 1.51. Microalgae have considerable biosynthetic potential, being a rich source of lipids, proteins, and high-value compounds. taxes and assessment, If an appraiser uses a cost manual to estimate cost new for a property, the result is effective date of value Any rate used to convert income and the value is the definition of _____ rate. When describing roofing shingles, a "square" contains __________ square feet. yield capitalization 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?