Residential Appraiser Site Valuation and Cost Approach

Residential Appraiser Site Valuation and Cost Approach "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 Answer: Legal description 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 Answer: plat Bounds are best described as ______. Correct Answer: distances 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 How many links are in a chain? Correct Answer: 100 Each section contains _____ acres. Correct Answer: 640 In the Government Survey System, each township is divided into ____ sections. Correct Answer: 36 Which system of legal description grew up primarily in the mid 1900s with the advent of suburban subdivisions? Correct Answer: Lot and Block Sites are usually valued according to Correct Answer: their highest and best use "In law, the solid surface on the earth, as distinguished from water" is the definition of Correct Answer: land The Government Survey System is found primarily in the Correct Answer: midwest and west A plan, map, or chart of a city, town, section, or subdivision indicating the location and boundaries of individual properties is the definition of Correct Answer: plat The highest and best use of a site is the use that Correct Answer: results in the highest site value How many feet are in a chain? Correct Answer: 66 Land includes the surface of the earth and Correct Answer: anything attached to it by nature or mankind A rectangular lot is 244.88 feet by 391.06 feet. It sold for $48,000. How much did it sell for per acre? Correct Answer: $21,818.18 Traffic by a site is always a negative factor. Correct Answer: false The most commonly used method of site valuation is the _______________ method. Correct Answer: sales comparison We should only adjust for items that are _____________. Correct Answer: significant The most accurate and understandable method of site valuation is the _____________ method. Correct Answer: sales comparison Corner locations are generally beneficial in which type of properties? Correct Answer: commercial Nationwide soils maps are available from the _______________. Correct Answer: Natural Resources Conservation Service Properties in a Special Flood Hazard area are those designated by FEMA as being in _________. Correct Answer: Zones A and V Which agency is authorized to issue Nationwide Permits for filling or dredging wetland areas? Correct Answer: Army Corps of Engineers A site has a total of 95 acres. However, 14 acres is in a protected wetland area and 23 acres is encumbered by a utility easement. What is the net usable area? Correct Answer: 58 Nationwide Permits are required for projects impacting as little as ______ of wetlands. Correct Answer: 0.5 acre Before we embark on a detailed highest and best use study, the first step ought to be a check of the zoning ordinance to see what uses are allowed. Correct Answer: true Price per front foot is a common measure of comparison when appraising what type of properties? Correct Answer: waterfront and commercial A property has a large 1.5 -acre homesite in an area where 0.5 acre sites are typical. Due to frontage restrictions, this additional acre cannot be subdivided off and built on. What is this additional acre considered? Correct Answer: surplus land For residential properties, a large amount of traffic by a site is usually a _______ factor. Correct Answer: negative What type of soils absorb water quickly and swell up, causing cracking? Correct Answer: expansive 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 Answer: surplus land A percolation test measures the _____________ of the soil. Correct Answer: permeability "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 Answer: CC&R When embarking on a detailed highest and best use study, the first step is usually Correct Answer: check to see what uses are allowed under zoning 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 A comparable sale recently sold for $300,000. The typical land value to property value ratio in that area is 40:60. By allocation, what is the value of the land in that comparable sale? Correct Answer: $120,000 You find a comparable sale that recently sold for $260,000. The typical land value to property value ratio in that area is 35:65. By allocation, what is the value of the land in that comparable sale? Correct Answer: $91,000 A method of estimating land value in which the depreciated cost of the improvements on an 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 ___________________ method of site valuation. Correct Answer: Extraction A method of estimating land value in which sales of improved properties are analyzed to establish a typical ratio of land value to total property value and this ratio is applied to the property being appraised or the comparable sale being analyzed is the definition of the ___________________ method of site valuation. Correct Answer: allocation The subdivision development method is a variation of _________________________ analysis. Correct Answer: Discounted Cash Flow 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 Answer: Balance If a property has a ground rent of $75,000 per year, which is market rent, and the appropriate capitalization rate is 11%, what is the value of the land, by the ground rent capitalization method? Correct Answer: $681,818 If a property has a ground rent of $60,000 per year, which is market rent, and the appropriate capitalization rate is 9%, what is the value of the land, by the ground rent capitalization method? Correct Answer: $666,667 The temporary use to which a site or improved property is put until a different use becomes maximally productive is the definition of __________ use. Correct Answer: interim A parcel is valued at $140,000. Zoning allows it to be subdivided into 5 lots and it is estimated that each lot could sell