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Fin 480 | Real Estate Appraisal | Exam 2 v1

8. To qualify as a comparable, a sale must be all of the following except

A. A competitive property

B. An open market transaction

C. Exactly equal to the subject property

D. Recent in time of sale

9. A competitive property means one that

A. A prospective buyer would consider it as an alternative purchase

B. Has superior features

C. Is more attractively priced

D. Appeals to a different sub-market

10. Required data about a comparable sale should include

A. Sale transaction data

B. Physical characteristics

C. Legal characteristics

D. All of the above

11. (Bonus) In adjusting a sale, the appraiser should always

A. Adjust the sale to the subject

B. Adjust the subject to the sale

C. Add or subtract dollar amounts

D. Consider all of the above rulest)

P1 (10 points):

The drawing below shows the outline of a one-story house with an attached garage. Construction costs new for this type of house are $62.00 per square foot for living area and $26.00 per square foot for the garage. Based on this information, estimate the total cost new of the improvements.

( Garage 20’ x 19’ ) ( House 41’ x 22’ )

Section 2: Problem solving questions; (Demonstrate your calculation steps to receive partial credit)

P3 (30 points):

A house has an estimated replacement cost of $200,000. The house is 10 years old (that’s its actual age), and it has an estimated economic life of 65 years. It is in need of repainting and other minor repairs, which will cost a total of $5,000. The remaining economic life of the house is currently estimated at 52 years; the remaining economic life would be 55 years if the needed repairs were completed. Estimate the depreciated value of the house under both versions of the economic age-life method (considering cost to cure or not).

Method 1 (without considering cost to cure):

Method 2 (considering cost to cure):

Section 2: Problem solving questions; (Demonstrate your calculation steps to receive partial credit)

P4 (30 points): Using the given information to estimate the property value

Assumptions
	Market Conditions	0.30%	month increase
	Lot price	$ 100,000	per acre
	Siding	$ -	adjustment
	Brick Front/Siding	$ 2,500	adjustment
	All Brick	$ 4,000	adjustment
	Depreciation	$ 1,250	year
	Living Area	$ 58	sq. ft.
	Porch/Patio	$ 26	sq. ft.
	Pool	$ 7,000
	Bath	$ 4,000

ANSWER SHEET 3 (Continue)

Last Name: ___________________First Name: _____________________Student ID: _______________________

Section 2: Problem solving questions; (Demonstrate your calculation steps to receive partial credit)

Elements of Comparison	Subject		Comp 1	Comp 2	Comp 3
Sales price of comp

*Transaction Adjustments*
Adj for property rights	Fee Simple
Adj for financing terms	Conventional
Adj for conditions of sale	Arm's Length
Adj for expenditures after sale	None
Adj for market conditions	Today
Total Transaction Adjustments

*Property Adjustments*
Location	Parkway Estate
Physical Characteristics:
	Site	.50 acres
	Construction Quality	Siding/good
	Effective Age	3 years
	Living Area	1960 sq. ft.
	Baths	2.5
	Porch, patio, deck	None
	Fence, pool, etc.	None
Total Property Adjustments

Final Adjusted Sales Price

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