Chapter 7.2 Quiz (14% Of The Exam)

An appraiser may appraise a property owned by a corporation in which he is a shareholder when he discloses his ownership of shares in the appraisal report. This ensures transparency and allows for potential conflicts of interest to be identified. By disclosing his ownership, the appraiser is providing relevant information to the stakeholders involved in the appraisal process. This allows them to make informed decisions and assess the objectivity of the appraisal.

The correct answer is "all of the above". This is because value, as defined by appraisers, encompasses the relationship between the thing desired and the purchaser, the power of one commodity to attract other commodities in exchange, and the present worth of future benefits arising from ownership of the property. In other words, value is determined by various factors such as demand, exchangeability, and potential benefits, making all of these options relevant in defining value.

Plottage is an added increase in value when two or more lots are joined together, above and beyond the value of the individual lots

An old kitchen is considered functional obsolescence

An appraiser would use the capitalization (income) approach in appraising a shopping center. This approach involves determining the value of the property based on its potential income generation. The appraiser would consider factors such as rental income, expenses, and market trends to calculate the property's value. This approach is commonly used for income-producing properties like shopping centers, as it focuses on the property's ability to generate income in the future.

Conduit: a metal pipe in which electrical wiring is installed. An electrician installs the conduit in a construction project

Foundation plan shows the location, size and dimensions of the footings, concrete piers and details of the subfloor area

Percolating water: underground water which does not flow in a defined channel. Percolating water seeps through the soil

Potable water refers to water that is safe for drinking and is not contaminated. It is the opposite of non-potable water, which may contain harmful substances or pathogens. The term "potable" comes from the Latin word "potabilis," meaning drinkable. Therefore, the correct answer is potable water.

A commercial development that has a single line of store buildings constructed along a major transportation route is described as a strip commercial development. This type of development is characterized by a linear arrangement of stores or businesses that are typically located along a busy road or highway. The buildings are usually designed to have direct access and visibility from the road, making it convenient for customers to access the businesses. This type of development is commonly found in suburban or urban areas and is often focused on providing goods and services to passing motorists.

A consumer would contact the Structural Pest Control Board in order to obtain a written report disclosing the presence of wood destroying organisms. This agency is responsible for regulating and licensing pest control operators, including those who deal with wood destroying organisms. They would have the necessary expertise and information to provide the consumer with a detailed report regarding the presence of these organisms.

The correct answer is a toxic waste report from the EPA. This is because the presence of an abandoned gas station next door raises concerns about potential contamination of the soil and groundwater due to the storage and handling of hazardous materials. A toxic waste report from the EPA would provide information on any environmental hazards that may affect the value and safety of the property being appraised. A soil report by a civil engineer may be relevant for assessing the stability and suitability of the land, but it would not specifically address the potential contamination issue. Rezoning of the property and a structural pest control report are not directly related to the concerns raised by the abandoned gas station.

A turnkey project refers to a construction project that is ready for occupancy. This means that all the necessary work has been completed, and the project is fully functional and can be used or occupied immediately. It implies that all the necessary steps, such as planning, design, construction, and finishing, have been taken care of, and the project is ready to be handed over to the client or end-user. This term is often used in the real estate and construction industry to describe a project that is fully completed and can be used without any further modifications or additions.

The ultimate test of functional utility is marketability. This means that the true measure of how well a product or service fulfills its intended purpose is its ability to be successfully sold and accepted in the market. Marketability encompasses factors such as consumer demand, pricing, competition, and overall appeal. While maintenance costs, design, and utility costs are important considerations, they do not directly determine the functional utility of a product or service as much as its marketability does.

When using the market data approach to appraise a single-family residence, the unit of comparison is the entire property. This means that the appraiser will compare the subject property to similar properties in the market to determine its value. The appraiser will consider factors such as location, size, condition, and amenities to determine how the subject property compares to others. By comparing the entire property, the appraiser can get a comprehensive understanding of its value in relation to the market.

The correct answer is dividing the sales price by the gross monthly income. When using a gross multiplier to determine property value, the appraiser calculates the appropriate gross multiplier by dividing the sales price of the property by the gross monthly income it generates. This method helps determine the value of the property based on its income potential.

Carbon dioxide is not considered a dangerous gas that may be present in a home. While it is true that high levels of carbon dioxide can be harmful in certain situations, such as in enclosed spaces with poor ventilation, it is not typically a concern in most homes. On the other hand, carbon monoxide, radon, and formaldehyde are all known to be dangerous gases that can be present in homes and pose health risks if not properly managed.

The elevation sheet for a new subdivision shows drawings of the front and side views of the homes as they will appear when finished. This means that the sheet provides visual representations of how the houses will look from the front and the sides once construction is complete. It does not include the topography of the land, interior views of the homes, or aerial views of the homes.

A "footing" in home construction refers to the spreading part at the base of a foundation wall or pier. This is the part of the structure that helps to distribute the weight of the building and provide stability. It is typically made of concrete and is larger in size compared to the rest of the foundation. The footing ensures that the weight of the building is evenly distributed and prevents settling or shifting of the structure over time.

Original cost has little impact upon market value

"Replacement cost" refers to the current cost of constructing a building that is comparable to the one being appraised, and that would serve the same purpose or utility as the original building being replaced. This means that the replacement cost takes into account factors such as materials, labor, and other associated costs required to recreate a building that is similar in function and utility to the one being appraised. It does not necessarily mean replicating the exact design or features of the original building, but rather creating a new building that serves the same purpose.

The correct answer is "minor work not exceeding $500". This means that if a person performs minor work that does not exceed $500 in value, they are exempt from being licensed by the Contractors' State License Board. This exemption allows individuals to do small repairs or improvements on their property without needing a contractor's license.

The fact that the inside of an exterior wall is about the same temperature as the other interior walls indicates that the wall insulation is adequate. If heat was leaking out through the exterior walls, the appraiser would expect to find a temperature difference between the inside of the exterior wall and the other interior walls. The temperature consistency suggests that the insulation is effectively preventing heat transfer, indicating that it is adequate.

The correct answer is mudsill. The mudsill is the lowest part of a frame house that rests on the foundation. It is typically made of wood and serves as a base for the rest of the house structure. The mudsill helps distribute the weight of the house evenly onto the foundation, providing stability and support.

Both the buyer and the seller must receive a copy of the structural pest control report. This ensures that both parties are informed about any potential pest issues in the property. The buyer needs this information to make an informed decision about purchasing the property, while the seller needs it to be transparent and comply with legal requirements. By providing the report to both buyer and seller, it promotes transparency and protects the interests of both parties involved in the transaction.