REA QUIZ NO. 15 APPRAISAL PROBLEM SOLVING QUESTIONS (50) AND MISCELLANEOUS QUESTIONS (30) APPRAISAL PROBLEMS & COMPUTATION L RC2 wanted to sell the lot he bought last year and invest the proceeds in the money market, It is a comer lot and has a good view of the Taal Lake, but a portion thereof slopes down slightly. The lot is 600 square meters and the prevailing market price is P2,500.00/sq. m. As a new licensed appraiser, what would you recommend given the following data: Comer Influence, 30%; Te disadv. (0%; plottage advantage, 20%” CC P4,000.00/8q. m. B—_P3,000.00/sq. m. D —_P4,500,00/5q, m. A 12-storey building was built on a 1,000 sq.m. lot. In April 2000 at a cost of P15,000.00/sq. m. Floor area is 600 sq. m/floor. Land cost is P3,500/sq. m, Assuming that the depreciation of the building is 1.5% per year and appreciation of land cost is 5% per year, what is the present value of the property if the current construction cost is P25,000.00/sq.m.? A P14,760,000.00 C — P21,500,000.00 B _P18,260,000.00 D —_P20,360,000.00 Developer J-Lo Realty bought a commercial building with the following measurements: Ground Floor, 30 x 25 meters; Meazzanine, 30% smaller than the Ground Floor, 2" Floor, 85 sq. m, smaller than the Ground Floor and 3" Floot, 25% bigger than the Mezzanine, What ids the total floor area of the building? C P2,596,65 sqm. Bo P2,596.50 sq.m. D —_P2,596.75 sq. m. ‘A 4-hectare property with 4 different owners and titles was bought by a developer from a ‘consolidator who has a special power of attomey to scll. The lot is I-hectare each. Lot 1 is adjacent to the existing highway whileLots2, 3 and 4 has no right of way and approximately 200, 400 and 600 meters away from the highway respectively. The owners cannot agree on how to divide the PS,000,000.00 net proceed of the sale equitably. To settle the issue, the consolidator hired the services of a competent and experienced licensed appraiser to recommend the sharing, ‘The appraiser recommended the depth rule 4-3-2-1 in the evaluation of the rawland and the ‘owners agreed. What is the respective share of each owner using the said rule? A oe ‘ ou ah P1.425M: i 950K and Lot 4, P425K. C Lot 1, P1.95M; Lot 2, P1.4M; Lot 3, P925K and Lot 4, P4SOK D Lot 1, P1.975M; Lot 2, P1.45M; Lot 3, P975K and Lot 4, Pa75K A house and lot is priced at P8,800,000, The lot alone is valued at P1,650,000, What percentage of the total asking price is attributable to the val A 183% Be 19.0% D — 18%% A rectangular site measures 12.5 meters (frontage) by 25.6 meters (depth), of which 2.6 meters is in the public right-of-way. What is the gross and net site area? A 0.66 ha & 0.75 ha net Cc 386,56 sq. m. gross & 320 sq. m. net GMMMDO GGL AATSSATMTR D351 sg. gros 3209. mned 10. UL 12. 13, 14 16. A structure with an obsolete floor plan is being appraised. A comparable structure with the same floor plan was recently sold for P1,420,000. A comparable structure with a more desirable floor plan was recently sold for P1,360,000. What is the loss in value attributable to the floor plan? A P160,000 156,000, B P142,000 ‘A tenant who rented the office space will pay his monthly rental to the owner in the amount of P35, 000 per month and a deposit of P70, 000. How much withholding tax must he deduct from ‘the payment? Cc P5,250.00 B P3,500.00 D ‘P10, 500.00 ‘A comparable site was sold a month ago for P25,000 per square meter, Its location is considered 15% superior and its shape and topography is 19% inferior to the subject site. The time adjustment is 12% per year. Determine the adjusted sale price of the comparable site using, GER cs 130 peesquaemeter B —_P24,250.00 per square meter D 24,000 per square meter ‘Mang Paeng’s house was built 12 years ago. Because he keeps it in excellent condition, it shows only as much wear as a typical five-year old house. Mang Paeng’s house therefore has an effective age of: A Tyears © Wyears Bo Syeas D Yyears I the subject property is 10% superior to the comparable sale and the comparable was sold for 1,000,000, what is the indicated value of the subject? ‘A___"P1,000,000 x 0.90 = P900,000 C —_P1,000,000/ 1.10 = P909,000 (GPT 000, 000/51. PI100,000 DPI, 000,000/0.90=Pi,111,111 The appropriate adjustment for time is determined to be 9% per year. The time adjustment for a comparable property that was sold a year ago for P100,000 per square meter is: A Less P9,000 per square moter B Plus P6,050 per square meter D Less P6,000 per square meter E, G.’s house in Corinthian Gardens is 12 years old but has been well cared for, that itis in good condition as a typical 8-year old property. Residences in this area typically last for 60 years, and ‘even that life span maybe extended with extensive renovation. Effective age of the residence is: A 100 years c 12 Bo GO years D Byears ‘The chronological age of E. G.’s residence described above is? A100 years B 60years, D S8years ‘The remaining life of E. G.’s residence describ 2 A 100 years B60 years D 48 years ‘Normal life expectancy of E. G.’s residence described above is: A 100 years c 12 years (Bo years D ayes17. A property in Dasmarinas Village, Makati City of 800 sq. m. and improved with a 2-storey, 6br, 4 ‘T&B and 4-car garage residential building was sold for P20,000,000. Using the rule- of thumb of building,to-land ratio of 3:2, what is the value of the building? A 10,000,000 B _P11,000,000 D_P15,000,000 18. The reproduction cost new of a commercial building is estimated to be P80,000,000. The building should have an economic life of 50 years, and it is now five years old, which is also its effective ‘age. What is its value by the cost approach (exclusive of land value)? ‘A P88,000,000 CC P80,000,000 B 64,000,000 pond Seep] eae) Gea) cae] 19, An office structure has depreciated by 40% since it was built 25 years ago. If it would cost r P4,250,000 to build today, and if similar sites are for P1,750,000, what is the market value of the | property using the formula for the cost approach A P2,550,000 B _P3,450,000 D ——_P6,000,000 | 20. Th i. B C ‘the sum of all sides x height D sum ofall sides x inside radius i 21, ‘The equivalent of one (1) square meter is A. 10.578 sq. ft. Cc 10.875 sq. ft. BD 1075859. D 10,78535.2 22. Ifa particular buyer requires a recapture of the building portion of the price in 30 years, what is rc the indicated recapture rate of the building? | A 3% Bo 3%% swprecinwe py SDapoxceng einer tavaepwilt?, ‘A P270,000 ‘C_P450,000 i B _P378,000 D __P1,152,000 24. A house and lot is priced at P7,500,000,00. The lot alone is valued at P2,531,250.00. What cr percentage of the total asking price is attributed to the house?mre Sal foal ed Se) = Sana. 26. ‘The area of a right triangle with a height of 10 ft and a base of 4 ft is A 4059. Sol: 10fV3.28=3,0487meters Area= HIxb/ 2 Bo 25 sq.ft 4f03.28=1.2195meters .2881.2195/2 Cc 1.85sqm 3.28mx1.2195/2 =1.85 sq.m. D —-3.72sqm 27-30 QUESTIONS WILL BE BASED ON THE FOLLOWING PROBLEM: 21, 28, 29, 30, 31 33, 34, 35, 36, A property with an annual net income of P382,500.00 was recently sold for P4,250,000.00. The remaining economic life of the building is estimated to be 25 years. Land value is estimated to be 900,000.00. Based on the data gathered; ‘The Overall Rate of the property is: Solution: — Land P 900,000 A 8% Selling Price ‘P4,250,000 B M Bldg. Value P3,350,000 Cc 10% Dep.Rate100/25yrs.=4% D 12% Normal Eco.Life Remaining Life ‘The value of the building is: A 3,250,000 Income Approach: V= I/R B 3, 450,000 R? c 3,350,000 D 3,500,000 ‘The recapture rate of the building is 100/25 Yrs=4% A 4% c 5% B 6% D 3.33% Ratio of the building to total value is Solution: Ratio Bldg vs. S=P3,350,000/P4,250,000 A 88.78 % c 73.83% B 68.78% D 78.82% A sample consists of the observations 85, 79, 91, 82, 75, 72, 68 find the midrange A 75.0 Cc 75.9 B ms D780 In the sample 14, 19, 16, 21, 18, 19, 24, 15, 19, the mode is c 18 B 21 D vad Inthe sample 14, 16, 18, 21, 19, 18, 24, 17, the mode is A 19 Cc 21 Bow Don aan * 29, 26, 37, 21, the median is Cc 31 B 26 D 37 In the sample 8, 7, 11, 8, 12, 14, the mean is A ay Cc 2 D 13. % plus 3/7 is equal to Solution: 1/2+3/7 = 7/1446/14 = 13/14 A S/T Cc 1/14 Bane Dion37. anise to: Solution: 2/3-1/8 =16/24-3/24 = 13/24 c (15/4 Bo O38 D 3/16 38. eda” is equal to: Solution: . C 15/24 15/6 x 3/ BOR Desh! 39, A house and lot is priced at P8,000,000.00, The lot alone is valued at P1,500,000.00 What percentage of the total asking price is attributable to the value of the lot? A 18.5% B 19.0% D B%% Solution: P1.SM/P8M=18.75% 40. Mr. Jose Sanchez paid B8]M0000 as one month’s interest at 18% on the outstanding balance of his loan, What is the current outstanding principal balance of Mr. Sanchez’s loan? A 600,000.00 c 580,000.00 B 620,000.00 D 560,000.00 Solution: P8,400 x12=P100,800=18% 41. A value of a building with a first year net operating income of P200,000.00 and with an overall capitalization rate of 9.52% is Soluti ”2.00,000/9.52°%=P2,100,840 A P 2,300,840.00 Cc P2,100,000.00 B FaqMenoM (Dra 8H0.0 42, With the building value at P1,400,000.00 land capitalization rate 9.5%, building capitalization rate of 10% and net operating income of P200,000.00 the total property value, using the Land 1) Method would be: Solution: V=I/R=P200,000/9,5%=P2,105,263 C —-P.2,022,500.00 B —-P-2,105,263.00 D None of the above 43. Inthe series, 15, 12, 10, 12, 13, 8 and 9, what is the median? Cc 12s Bo 1129 D 2B 44. A property has 25 apartment units. 15 two bedroom unit renting for P5,000 per month each and 10 one bedroom unit renting for P2,000 per month each. There are 14 two bedroom unit occupied and 8 one-bedroom occupied. The potential eg eo A P1,100,000 B _ P1,120,000 D _PI,S00,000 45, The house flooring has an area of 30 square meters. How many vinyl tiles are needed if size is 12 x12 inches (choose the nearest answer) Solution 1m = 3.28 sqcft. x 30 = 322.8 sq.ft or 323 sq.ft A 300 C380 Bo O83 46. A. commercial property producing an annual gross income of P39,000 was sold two months ago for P34] 250.7he property's aoe income multiplier i SolationsGIMoPO4 2509, 000-875 A Cc 8s Bias Dascont areal eel 3 41. 48. 49, 50, If a commercial structure is a rectangle with sides of 65 meters and 135 meters and the current focal cost to build a similar is Php4,500 per square meters, what is the estimated construction cost of the structure using the square meter method? Solution: 65x135x P4,500 = P39,487,500 A PI8,000,000 en p.87500, B__ P180,000,000 D —-P36,450,000 aks sales prices of P100,000, P75,000, P175,000, P200,000, P150,000; C —— P700,000 B P150,000 D _P175,000 Which of the following estimates would result in a capitalization rate of four percent? A Potential Gross Income P200,000 ; Value P5,000,000 B__ Effective Gross Income P200,000 ; Value P 5,000,000 D None Construct an interest rate for a recently sold commercial property with the following known facts: ‘The selling price was P435,000,00. The site value is P125,000.00 and the building’s estimated remaining economic life is 25 years. Total net operating income is P57,000.00. What is the overall cap rate for the property? Solution: R= NI/V= 13.10% A 125% Cc 135% BB D 1425% MISCELLANEOUS QUESTIONS: 51. 52. 53. 54, 55, 56, 37. A parallel beam is known as: A Ajamb B Agirder DA batten ‘That piece of metal which protect a structure from water ¢ is called as: a Gater Te ech B Coving D _ Downspout Ina conventionally constructed house, the highest member of the frame is: r Cc Girder So Ridge beara D Collar beam ‘A garage which has a living area and both adjacent to and above the house is called: A Enclosed C Attached B Baitein D Dasached A house with two levels of Living area characterized by a steep roof slope and dormers, in which the area of the upper level is 40-60% of the lower, A Slitlevel B One Storey D Two storey ‘This comprise of thin, small sheets of waterproof materials used as surfacing materials on roofs and walls A Shake C — Shingles B Tegula D Placa romana ween columns or piers in the interior of a building is a: C Grade beam B Nogging D ‘Battena Sa: t ied soos) tas): Soon 58, 59. 60, 61 62. 63, 64. 65. 66. 67. 68 A heating system based on hot water refers to: Cae © Convector stem B Cogeneration system D Hydraulic system A “Romex” is a type/brand of. A Roofing C_ Steet B Door D Wire The term “riprap” relates and best describes: A Electrical connection B Plumbing fixture D Rock and stones ‘This is a clay-based unglazed or glazed ceramic, where the fired body is porous. St sles c Balluster Bi Terra Cota D Tega ‘One acre is equivalent to: A. 15,280sq. ft CC 5,280 sq. ft. B 10.3600. Dd Bsa0sa Horizontal bars, timbers and beams supporting. A Footing B Stud D Pier ‘The equivalent of one (1) square meter is: A 10.785 sq. ft. ic 10.587 sq. ft Re 102758sq. i D. 1057850. A building’s entire foundation structure which is below grade or ground and include such foundation supports such as footings, slabs, piles, beams, piers and columns is the: A Footings B Infrastructure D-——Superstructure Torra-cotta is A aed burned WAEIaeEA lay AUAMIYMOIMEDnto shapes for the ornamentation of structures BA foundation built of locally mined stone © A type of electrical service D A green mold that forms on the top of chimneys Gunite is A CTaTRGaliy PHRESGICOREREEE SWAT ABBD cited with in-ground pools BA type of insulating material C A type of roof shingle D Part ofa staircase Ajalousic is A GAUSRRGAWIRDGWIVIERGEral window panes BA type of furnace C A type of wood framing, D A type of earthen damnoe ey Soe ee) ea) ed) zl) ated etal nee! Sue Soe, coe So aed dg he) 70. n 2. B. 14, mB. 76. 7. Gross living area is A roperties ic Commonly used in industrial properties D Commonly used in apartments ‘Short-lived items include all WHEL A Interior paint CC Water heater B Roof covering Gutters are A __ Designed to cover rds B sp if off the heads of the inhabitants c Inneeded in most applications D Designed to channel water away from the building's foundation Eaves A GE SAAASEREEPGSGGONIED ertical wal ofthe building B The part of the floor system that is under the framing C The lowest part of the foundation D_ The top of the roof at its highest point Functional inutility is A A weak market segment 2 Gitinpirmento he RREORTERRy oF «property orbiting C The lack of utility room in a house D A weak market due to oversupply of homes A baluster is A jon materials B bers in a stairway or balcony C The fabric top in a curtain that is usually located on kitchen windows D _A weak or insignificant performance by an appraiser or other real estate professional Ceiling joists are A The Structuiralimembers thal the ceiling is attached to B The structural members that the roof shingles and underlayment ate attached to c ‘The boards that the gutters are attached to D ‘The steel supports for the first floor that run to the basement Clapboard is. A B —_Aplace to put dishes and other kitchen utensils C ——Aplace in a house where the ironing board is usually stored D A type of roofing material Bricks are A {is used only in building houses B d C A nnatural material found in the earth that is cut into litle pieces D —_ A construction item that holds up the residence and is used for structural strength in modem housing7a B. 80. Coping is 3 Reale before B C The space between bricks that is filled with mortar D The masonry cap put on a wall to provide for watershed A small recessed space in a room or wall A. Porch Alcove Bo Den D — Ante-room A casement window is > B A horizontally hinged window that opens from the bottom to shed water C A window that is designed to prevent criminals from "casing the joint” DA window that does not open at all