Residential Appraiser Site Valuation and Cost Approach QUESTIONS WITH VERIFIED ANSWERS

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Residential Appraiser Site Valuation and Cost Approach QUESTIONS WITH VERIFIED ANSWERS Trees growing on wooded property in a nature preserve would be part of the Correct answerland Land includes... the surface of the earth and Correct answerAnything attached to it by nature or mankind The highest and best use of a site as though vacant may be different from the highest and best use of the whole property, as presently improved. True of False? Correct answerTrue Which of the following would NOT be considered a site improvement? Curbs and gutters Municipal water Fill Mineral deposits Correct answerMineral Deposits "A description of land that identifies the real estate according to a system established or approved by law; an exact description that enables the real estate to be located and defined" is the definition of Correct answerLegal Description All areas are platted. True False Correct answerFalse Which method of legal description is found primarily in along the East Coast? Correct answerMetes and Bounds In the Government Survey System, each township is divided into ____ sections. Correct answer36 How many feet are in a chain? Correct answer66 ft How many links are in a chain? Correct answer100 A triangular shaped lot contains .65 acres and sold for $37,500. How much did it sell for per square foot? Correct answer1.32 Each section contains _____ acres. Correct answer640 "In law, the solid surface on the earth, as distinguished from water" is the definition of Correct answerland Which unit of measure is the longest? Pole Chain Furlong Rod Correct answerFurlong A map or sketch of an individual property that shows property lines and may include features such as soils, building locations, vegetation, and topography that can also serve as an official legal description is called a? Correct answerPlot The highest and best use would be the one that would bring the highest value to the site. True False Correct answerTrue Which statement is true of land rights? They cannot be separated from the land They can be sold but not leased They can be leased but not sold They can be sold or leased Correct answerThey can be sold or leased A triangular shaped lot contains .65 acres and sold for $37,500. How much did it sell for per square foot? Correct answer$1.32 Which of the following items would NOT be considered a site improvement? Water rights Site plan Fill Permits Correct answerWater Rights Which method of legal description is the earliest? Government Survey Lot and Block Rectangular Survey Metes and Bounds Correct answerMetes & Bounds Land is best described as a _____________ element. Correct answerphysical The most accurate and understandable method of site valuation is the _____________ method. Correct answerSales Comparison Which is a true statement regarding adjustments in the sales comparison method? Correct answerQuantitative adjustments may be made on either a dollar amount or a percentage basis. We usually make percentage based adjustments when we adjust for __________ and ________________. Correct answerLocation and Market Conditions Traffic by a site is always a negative factor. True of False? Correct answerFalse Corner locations are generally beneficial in which type of properties? Correct answerCommercial Nationwide Permits are required for projects impacting as little as ______ of wetlands. Correct answer.5 Acre Nationwide soils maps are available from the _______________. Correct answerNatural Resources Conservation Service The easiest site to develop is one that is Correct answerGently sloping Properties in a Special Flood Hazard area are those designated by FEMA as being in _________. Correct answerZones A or V A property owner has a 4-acre site in an area where 1-acre sites are common. This additional land cannot be subdivided off and sold, and it is not capable of its own highest and best use. This is an example of: Correct answerSurplus Land Which would NOT be an example of a private restriction? Easement Zoning Land lease Transferable Development Right Correct answerZoning "A list of expressed assurances and limitations on land use, often found in contracts between a land subdivider and a lot purchaser" is the definition of Correct answerCC&R (Covenants, Codes & Restrictions) Which government agency is authorized to issue Nationwide Permits for filling or dredging wetland areas? Correct answerArmy Corps of Engineers The right to perform a specific act on a property owned by another is called Correct answerAn Affirmative Assessment The most commonly used land appraisal form is a Fannie Mae form. True or False? Correct answerFalse (The most common land appraisal report form is a generic form, and is not produced by Fannie Mae. Fannie does not purchase loans on vacant land.)(Chapter 2) In the most commonly used land appraisal form, which is NOT one of the line items that are listed for adjustment? Date of sale Shape Location Site/view Correct answerShape A home has a large 4-acre site in an area where 2-acre sites are common. This additional 2 acres can be subdivided off and sold as a homesite. What is this additional 2 acres considered? Correct answerExcess Land What type of soils absorb water quickly and swell up, causing cracking? Correct answerExpansive The two methods that have frequent application in both rural and urban areas are the _____________ method and the _____________ method. Correct answerAllocation and extraction A property sold for $260,000. The reproduction cost of the building was $440,000 and its estimated deprecation was 80%. By extraction, what is the value of the land? Correct answer$172,000 (see chapter 3) A comparable sale recently sold for $340,000. The typical land value to property value ratio in that area is 30:70. By allocation, what is the value of the land in that comparable sale? Correct answer$102,000 (see Chapter 3) A property sold for $200,000. The reproduction cost of the building was $240,000 and its estimated deprecation was 75%. By extraction, what is the value of the land? Correct answer$140,000 (see Chapter 3) The value of an improved subject property by the sales comparison approach is $450,000. The allocation ratio, as indicated by sales of other properties in the area, indicates that the land-to-total-value ratio is 60%. What is the indicated site value of this property by the method? Correct answer$270,000 (see Chapter 3) A method of estimating land value in which the net operating income attributable to the land is isolated and capitalized to produce an indication of the land's contribution to the total property is the definition of the ___________________ method of site valuation. Correct answerLand Residual Real property value is created and sustained when contrasting, opposing, or interacting elements are in a state of equilibrium is the definition of the principle of Correct answerBalance The subject property has a total value of $234,000 by the sales comparison approach. A competitive neighborhood nearby has home sales with a median value of $240,000, and recent lot sales at $60,000. By allocation, what would be the value of the subject land? Correct answer$58,500 The median sale price of homes in a market area and the median land sale price in that market area could be used in calculating land values by the ___________ method. Land residual Extraction Allocation Subdivision development Correct answerAllocation The subject property has a total value of $315,000 by the sales comparison approach. A competitive neighborhood nearby has home sales with a median value of $300,000, and recent lot sales at $75,000. By allocation, what would be the value of the subject land? Correct answer$78,750 The combining of two or more parcels, usually but not necessarily contiguous, into one ownership or use, is the definition of Correct answerAssemblage The increment of value that often occurs when two or more sites are combined to produce greater utility, resulting in a higher productivity or income than could be obtained from the individual smaller sites, is the definition of Correct answerPlottage Value A parcel contains 4.5 acres. It is worth $50,000 per acre as residential land and $200,000 as a commercial site. If the zoning allows both, what is the highest and best use? Correct answerResidential A parcel is valued at $140,000. Zoning allows it to be subdivide [Show More]

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