Residential Sales Comparison and Income Approaches Exam - Spring 2024, Answered A mortgage with equal payments for each period over the length of the
... [Show More] loan is called a __________ loan. Standardized Equal rate Graduated payment Fixed rate The first step in the Sales comparison approach procedure is to research the market The COMPETENCY RULE of USPAP says an appraiser must have "the _______________________ to complete the assignment competently." Knowledge and experience The Sales Comparison Approach was previously known as the: Market Data Approach A transaction could be verified with all of the following parties EXCEPT Buyer Another appraiser Seller Listing broker Another appraiser In residential properties, anticipated future benefits are amenities. They may include all of the following EXCEPT The security of having a roof over your head The prestige of owning a nice home in a good neighborhood Tax benefits The privacy entailed in owning a home of your own Which of the following is NOT a common unit of comparison when appraising 2-4 unit properties? Price per SF of GLA Price per room Price per SF of GBA Price per bedroom The final step in the Sales Comparison Approach procedure is Verify the information Select relevant units of comparison Reconcile the value indications Research the market When choosing comparables, the appraiser analyzes Location, amenities, market conditions Sales or financing concessions Motivations of sellers and buyers, property rights All of the above In the sales comparison formula presented, we always start with The subject The comparable Either subject or comparable Neither the subject nor comparable When choosing comparables, the appraiser analyzes: Location, amenities Sales or financing concessions Motivations of sellers and buyers, property rights All of the above The principle of competition can be between Purchasers only Tenants only Purchasers and tenants Purchasers and tenants as well as between sellers and landlords The principles of progression and regression are illustrations of what happens when the principle of ______________ is violated. Conformity Balance Change Substitution "The principle that 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 Anticipation Supply and Demand Change Balance Of the three appraisal approaches, the Sales Comparison Approach relies most heavily on the economic principle of Mathematics Substitution Equalization Fairness "The result of the cause and effect relationship among the forces that influence real property value" is the definition of the principle of Anticipation Supply and Demand Change Balance When is the Sales Comparison Approach NOT the best way to estimate value? When there are many similar properties nearby When the market is very strong When the property is highly unusual When the property is in a subdivision Comparative analysis may employ quantitative analysis and qualitative analysis Separately only Together only Separately or together Only in the appraisal of non-residential properties Qualitative analysis is used for elements that Defy description Are too far apart Can't be ranked Cannot be given a numerical value The process by which a value indication is derived in the Sales Comparison Approach is called Comparative analysis Quantitative analysis Qualitative analysis Highest and best use analysis Syndications are: Private partnerships only Public partnerships only Either private or public partnerships Corporations Which type of ownership includes a right of survivorship? Joint tenancy only Tenancy in common only Tenancy in common and joint tenancy Joint tenancy and tenancy by the entirety Which of the following are NOT classified as negative easements? Conservation easements Drainage easements Historic preservation easements Transferable Development Rights "Trespassing on the domain of another" is the definition of Adverse possession Easement Encroachment Conservation easement "The order in which quantitative adjustments are applied to the sale prices of comparable properties" is the definition of Ranking Ordinal analysis Sales grid Sequence of adjustments Stanley gives his mother, Pearl, a life estate to occupy Stanley's home as long as Pearl's sister Myrtle remains alive, after which possession of the property will revert back to Stanley. Who is the remainderman in this situation? Stanley Pearl Myrtle There is no remainderman [Show Less]