Ch. 3 Valuation, Appraisal, and Investment Analysis

What is the tax rate on capital gain if an investor who is in the 25% tax bracket held the property for 12.5 months?

• 12.5%

• 15%

• 25%

• 28%

In appraising a home for a lender who wished to make a purchase loan, the appraise is concerned with

• the amount of the loan requested.

• property tax assessment.

• the price the seller has agreed to pay.

• zoning changes in the area.

An example of external obsolescense is

• numerous pillars supporting the ceiling in a store.

• roof leaks, making the premises unrentable.

• an older building with very small rooms.

• vacant and abandoned structures in the area.

A woman paid $190,000 for her home in 2004. She spent $41,000 on improvements for the home. She sold the home in 2007 for %184,000 and incurred closing costs of $11,900. The woman has

• a tax loss of $17,900.

• a tax loss of $35,100.

• a tax loss of $47,900.

• no loss for tax purposes.

An appraiser would need to determine accrued depreciation when using the

• gross rent multiplier method.

• cost approach.

• income approach.

• sales comparison approach.

A high rate of inflation is of greatest value to investors who have

• invested in long-term, fixed-income investsments.

• purchased property without the use of leverage.

• purchased property using moderate leverage.

• purchased property using a high degree of leverage.

Which of the following actions by appraisers is unethical?

• Refusal to make appraisals that appraisers feel are beyond their expertise.

• Appraising properties in which appraisers have a disclosed interest.

• Accepting an appraisal where the fee will be a percentage of the value derived.

• Requesting payment in advance.

An appraise, in using the expression a "willing, informed buyer and a willing, informed seller," is referencing

• progression.

• supply and demand.

• the principle of highest and best use.

• market value.

Which appraisal method would tend to set the upper limit of value on a new structure?

• gross multiplier

• income approach

• cost approach

• sales comparison approach

The advisability of including a tennis court with a planned apartment building may be determined by the principle of

• contribution.

• progression.

• substitution.

• change.