REAL ESTATE APPRAISAL HOMEWORK

REAL ESTATE APPRAISAL HOMEWORK QUESTIONS 1

*1. What is an appraisal?

*2. What is real estate?

*3. What does real property include?

*4. What do you call the manner in which a client employs the information contained in an appraisal report? – intended use

5.            What does real property consistof?

6.            When are appraisals alwaysused?

7.            Anappraiserisappraisingasmallresidentialpropertyandobservesthatithasaclothes washer and dryer. Should these items be included in the appraisal?Why?

8.            Whatareitemscalledthatarebuilttobepermanentandintendedtobeincludedwithreal property?

9.            What does an appraiser do relative to price andvalue?

10.          What do easements usually give a party the right todo?

11.          What is the Fifth Amendment to the U.S.Constitution?

12.          Suppose that you have owned a 40-acre tract of land for the last 25 years. You paid the taxes on the real estate for the first 20 years but have not paid them for the last five. What can the state do?            

13.          Suppose you own a house and five acres just outside the town of Monticello. The home is adjacent to Route 23, which has been a small two-lane highway for many years. Last year, the state decided to widen this road to six lanes to accommodate all the future traffic that will be createdbyanewriverboatcasino.Tofacilitatethisexpansion,thestatewillneedabout50feet off the front of your homestead. What will the state most likelydo?

14.          A fee simple interest in real property is limitedonlyby? 

*15. Why should a deedberecorded?    

16.          Zoningandenvironmentalprotectionregulationsareexamplesof?Escheat?PolicePower?

17.          What makes landunique?

18.          What do we know about the supplyofland?       

*19.Whataretheconcepts(characteristics)ofland?

20.          What is an example of a governmental force that affects real estatevalue?

*21. What are the ways to hold title or deed to real estate?

*22.Whenrealpropertyissoldbyonepersonto another,whatistheamountofmoneycalled that is used to compensatetheseller?

x23. What is acash-equivalentprice?       

24. What do we call a good’s capacity to satisfy human desiresorneeds?               

 *25. What are some things that might affect the demand for real estate?

*26. What are the four agentsofproduction?     

27. Why does real propertyhave value?

*28. What are some things that might affect the supply of single-family residential units?

*29. What will a single-family homeowner who builds a new and very unique structure commonly find?

*30. Whatareexternalities?        

*31. When demand for housing increases, what happens to supply?

*32. What does the overproduction of new homes doto prices?

33.          Asanagentofproduction,whatiscapital?

34.          Was does the statement “property values are created and sustained when the characteristicsofapropertyconformtothedemandofitsmarket”referto?

 *35. What are the three approachestovalue?   

36. What does highest and best use mean?

*37. What are the various land valuation techniques?

*38. What is the valuation technique in which land and building are valued separately?

*39. What is the valuation technique that considers the income a property earns?

40.          In what step in the valuation process is defining the value estimateincluded?

41.          Whatarethereasonsforestimatingthehighestandbestuse“asthoughvacant”and“as improved”?  

42.          What are the techniques for estimating land value?

43.          Why are there three approaches to estimating marketvalue?

44.          What are the activities that are a part of defining the appraisalproblem?

*45. What is the final step of the valuation process?

*46. What is the date that a value opinion should be based on?

47.          Why is an appraisal made as of a specifieddate?

48.          Who or what determines the data requirements for an appraisalassignment?

49.          What determines the value of a property to beestimated?

50.          Anappraiserfoundthatthesubjectpropertyhasasepticsysteminthefrontyard.The appraisercouldnottellifthesystemwasworking,sosheassumeditwasoperational.The appraiser made what kind of assumption?

51.          An appraiser was asked to appraise the fee simple interest in a 0.24-acre site improved with a24-year-oldresidence.Theappraiserstatedinthereportthat“Itisclearthattheroofcovering

 

is not in marketable condition. It is a condition of this appraisal and the value opinion that the roof shingles be replaced.” This would be an example of what kind of assumption or condition?

52.          What is a jurisdictionalexception?

*53. The value of a property to a particular user is known as?

*54. What is market value?

*55. What is investment value?

56. The local government levies taxes based on a defined value of the real estate. A local governmentofficialdevelopsanopinionofthevalueaccordingtostateregulations.Thelocal government official is developing what kindofvalue?         

*57. The owner of a small manufacturing plant recently sold the plant for $1,900,000. This amount includes the real estate, the equipment, the name of the company, and the client list. This amount would be considered what kindofvalue?

*58. What is insurable value?

*59. What is value in use?

*60. What is assessed value?

61. What is liquidation value?