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Question:

The narrative form of an appraiser’s report includes all the following except:

A the financial terms of the sale.
explanation

Financing is not part of the appraisal process. All the other answer selections are part of the narrative report.

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Related Questions

When appraising a special purpose property, an appraiser uses the ____

cost approach.

A special purpose property will not have sufficient comparable sales to generate a valid analysis nor an income to produce an accurate value. Therefore, the cost approach is the only appropriate approach to determine value.

Which of the following appraisal reports is the most detailed?

Narrative report.

Among the written reports, a narrative report is the most detailed and the restricted use is the least.

Which of the following is ethical for an appraiser to do?

Appraise a property in which the appraiser has an interest, provided they first disclose their interest in the property.

Disclosure is what makes this answer ethical. Note that none of the other choices are acceptable.

All of these are good reasons for making a separate site valuation, except ____

to apply the gross rent multiplier (GRM) technique.

Answer apply the GRM technique is the exception. The other choices might be appropriate reasons for a separation of site and improvements, whereas the gross rent multiplier (GRM) approach requires nothing other than calculating the rent multiplied by a multiplier to arrive at a value.

When comparable sales are unavailable or inadequate and a property generates no income, an appraiser would likely use the ____

cost approach.

The cost approach is the best answer selection. As the property does not generate income, neither answer capitalization approach or gross multiplier approach are applicable as they are both based on the income approach. Further, answer sales comparison approach may be eliminated as there is insufficient sales data of comparable properties available to make a comparison.

In using the market comparison approach in appraising a single family residence (SFR), comparisons should be made based on ____

the entire property.

Comparisons need to consider all elements of a property and its neighborhood. Therefore, answer the location of the property is not the best answer, and answer select the total cubic footage of the property is not a measurement that is considered in residential real estate.

An appraiser uses a site analysis to determine the ____

highest and best use of a property.

The purpose of a site analysis is to determine the highest and best use of a property.

Loss of value of an expensive home due to the close proximity of lower-priced homes in a neighborhood is known as ____

regression.

Regression is the loss of value of nicer homes due to lower-value neighboring properties, progression is the increase in value of lesser homes due to higher-value neighboring properties. Both are elements of the principle of conformity.

The statement “more buildings are torn down than wear out” is an illustration of ____

economic obsolescence.

The fact that buildings are torn down that are not yet physically worn out suggests economic obsolescence. Market expectations will drive many of these decisions.

All of the following are included in the laws governing the government power of eminent domain, except ____

the exercise of zoning authority.

Eminent domain has no specific relevance to zoning. The consideration that must be paid to the owner is the fair market value (FMV) of the property which is determined as the price a willing buyer would pay to a willing seller when the property has had adequate exposure on the market and neither party is under any duress.

Which of these most nearly refers to a loss in value due to economic obsolescence:

a zoning change.

When demand for a property type changes, it can cause a diminished value for existing buildings. Answer selection a zoning change is the best answer since it suggests a need for an entirely different property use.