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2- Residential Appraiser Site Valuation and Cost Approach exam with correct answers 2024
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2- Residential Appraiser Site Valuation and Cost Approach exam with correct answers 2024
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2- Residential Appraiser Site Valuationand Cost Approach exam with correct
answers 2024
The |Extraction |method |is |defined |as: |- |ANSWERS✔✔ |A |method |of |estimating |land |value |in |
which |the |depreciated |cost |of |the |improvements |on |an |improved |property |is |calculated |and |
defucted |from |the |total |sale |price |to |arrive |at |an |estimated |sale |price |for |the |land.
A |run-down |neighborhood |grocery |store |on |a |good |corner |location |in |a |desirable |older |
neighborhood |recently |sold |for |$400,000.
The |reproduction |cost |of |the |improvements |today |would |be |$250,000 |and |the |total |
depreciation |is |estimated |to |be |80%.
By |Extraction, |what |is |the |land |value? |- |ANSWERS✔✔ |$250,000 |x |.80 |= |$200,000. |That |
amount |is |lost |and |gone |forever. |$250,000 |- |$200,000 |= |$50,000. |
Therefore, |the |present |value |of |the |improvements |is |only |$50,000.
If |the |total |value |of |the |property |as |represented |by |the |recent |sales |price |, |is |$400.000 |and |
$50,000 |of |that |is |represented |by |the |value |of |the |building |improvements, |then |the |remaining |
portion |of |the |value |$350,000 |must |reside |in |the |land.
The |sale |price |of |the |property |was |$250,000. |Your |investigation |of |the |Building |Department |
records |allow |you |to |estimate |that |the |reproduction |cost |of |the |improvements |would |
currently |be |$280,000. |After |an |analysis |of |the |property, |you |conclude |that |the |total |accrued |
depreciation |is |60%. |On |the |basis, |what |would |be |your |conclusion |as |to |the |value |of |the |land?
|- |ANSWERS✔✔ |$138,000
280,000 |x |.60 |= |168,000
280,000- |168,000 |= |112,000 |
, 112,000=(contributory |value |of |improvements)
250,000 |(total |property |value) |- |112,000(contributory |value |of |improvements) |= |
$138,000(value |of |land)
The |Allocation |method |is |defined |as: |- |ANSWERS✔✔ |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.
Mass |Appraisals |are |defined |as: |- |ANSWERS✔✔ |The |process |of |valuing |a |universe |of |
properties |as |of |a |given |date |using |standard |methodology, |employing |common |data, |and |
allowing |for |statistical |testing. |Often |associated |with |real |estate |tax |assessment |valuation.
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? |- |
ANSWERS✔✔ |$102,000
340,000 |x |.30 |= |102,000
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? |- |ANSWERS✔✔ |$91,000
260,000 |x |.35 |= |91,000
A |comparable |sale |recently |sold |for |$300,000. |The |typical |land |value |to |property |value |ratio |in
|that |area |is |40:60. |By |allocation, |which |is |the |value |of |the |land |in |that |comparable |sale? |- |
ANSWERS✔✔ |$120,000
300,000 |x |.4 |= |120,000
A |method |of |estimating |land |value |in |which |sales |of |improved |properties |are |analyzed |to |
establish |a |typical |ratio |of |land |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. |- |ANSWERS✔✔ |Allocation
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