Can someone help me with these questions?

[bellagirl1]

Hi everyone. I have been studying to take my Certified General Commercial Test over again and I came across a few questions that I don't know how to answer. Can someone please help me- Thank you in advance.


The subject farm property has 80 acres of irrigated cropland, 120 acres of
pasture, and 40 acres of woodland. Comparable A has 150 acres of irrigated
cropland and 80 acres of woodland. Comparable A sold for $735,000. Assuming the
market has indicated that pasture sells for 75% of irrigated cropland prices and
woodland sells for 50% of irrigated cropland prices, what is the value of the subject
farm?
A) $699,200
B) $624,000
C) $768,000
D) $720,000

The subject is a mixed use undeveloped property with 3 acres zoned commercial,
5 acres zoned multi-unit, and 2 acres zoned single-unit. A similar 10-acre property
recently sold for $1.80 per sf with 4 acres zoned commercial, 4 acres zoned multiunit,
and 2 acres zoned single-unit residential.
Based on this on sale property, what is the per square foot value of the subject
property if multi-unit land typically sells for 40% of commercial land prices, and
single-unit residential land sells for 20% of commercial land prices?
A) $1.72 per sf
B) $1.70 per sf
C) $1.62 per sf
D) $1.52 per sf

Data collected about the comparable sales and the subject for the appraisal
assignment is presented in the following table.
What is the indicated value of the subject property?
Rental
Gross
Rent Cultivated Pasture Buildings Sale Price
Acres Acres
A $10,000.00 200 0 no $100,000.00
B $10,000.00 150 100 no $100,000.00
C $23,400.00 250 100 house $230,400.00
D $22,050.00 130 250
house /
barns $220,500.00
Subject 160 100
house /
barns
A) $198,000
B) $221,500
C) $201,500
D) $191,500

A developer has a rectangular 5-acre site with a commercial zoning designation
allowing mini-storage, office, retail, or apartments.
Given these factors, if the building capitalization rate is 10% and the land
capitalization rate is 7.5%, what is market value per sf of the site under the highest
and best use?
Maximu
m
Density Costs Financial Data
Mini-storage 0.60 FAR $66 per sf NOI $1,051,000
hard and soft
Rental 0.40 FAR $108 per sf EGI $24 per sf
hard and soft Expense ratio: 45% of EGI
Office 0.540 FAR $120 per sf Gross Rent: $25 per sf
hard and soft Market occupancy: 92%
Expense ratio: 45% of EGI
Multiunit
15 UPA $108,000 per unit
Monthly Rent: $2,400 per
unit
hard and soft Market occupancy: 95%
Expense ratio: 45% of EGI
A) $16.00 per sf
B) $15.00 per sf
C) $19.50 per sf
D) $14.50 per sf

 

[Roy Courtney]

I sure am glad that I do not have to take any more tests. My last test question went something like this: There are 12 inches in a foot and 3 feet in a yard...how far is it to the moon!

 

[Michigan CG]

Hi everyone. I have been studying to take my Certified General Commercial Test over again and I came across a few questions that I don't know how to answer. Can someone please help me- Thank you in advance.


The subject farm property has 80 acres of irrigated cropland, 120 acres of
pasture, and 40 acres of woodland. Comparable A has 150 acres of irrigated
cropland and 80 acres of woodland. Comparable A sold for $735,000. Assuming the
market has indicated that pasture sells for 75% of irrigated cropland prices and
woodland sells for 50% of irrigated cropland prices, what is the value of the subject
farm?
A) $699,200
B) $624,000
C) $768,000
D) $720,000

..................

I read the first one above and it is simple algebra. If these are challenging you I would guess you need to do a lot more studying as there will be questions a lot harder than the one above.

 

[CrkrJack]

Hi everyone. I have been studying to take my Certified General Commercial Test over again and I came across a few questions that I don't know how to answer. Can someone please help me- Thank you in advance.


The subject farm property has 80 acres of irrigated cropland, 120 acres of
pasture, and 40 acres of woodland. Comparable A has 150 acres of irrigated
cropland and 80 acres of woodland. Comparable A sold for $735,000. Assuming the
market has indicated that pasture sells for 75% of irrigated cropland prices and
woodland sells for 50% of irrigated cropland prices, what is the value of the subject
farm?
A) $699,200
B) $624,000
C) $768,000
D) $720,000

The subject is a mixed use undeveloped property with 3 acres zoned commercial,
5 acres zoned multi-unit, and 2 acres zoned single-unit. A similar 10-acre property
recently sold for $1.80 per sf with 4 acres zoned commercial, 4 acres zoned multiunit,
and 2 acres zoned single-unit residential.
Based on this on sale property, what is the per square foot value of the subject
property if multi-unit land typically sells for 40% of commercial land prices, and
single-unit residential land sells for 20% of commercial land prices?
A) $1.72 per sf
B) $1.70 per sf
C) $1.62 per sf
D) $1.52 per sf

Data collected about the comparable sales and the subject for the appraisal
assignment is presented in the following table.
What is the indicated value of the subject property?
Rental
Gross
Rent Cultivated Pasture Buildings Sale Price
Acres Acres
A $10,000.00 200 0 no $100,000.00
B $10,000.00 150 100 no $100,000.00
C $23,400.00 250 100 house $230,400.00
D $22,050.00 130 250
house /
barns $220,500.00
Subject 160 100
house /
barns
A) $198,000
B) $221,500
C) $201,500
D) $191,500

A developer has a rectangular 5-acre site with a commercial zoning designation
allowing mini-storage, office, retail, or apartments.
Given these factors, if the building capitalization rate is 10% and the land
capitalization rate is 7.5%, what is market value per sf of the site under the highest
and best use?
Maximu
m
Density Costs Financial Data
Mini-storage 0.60 FAR $66 per sf NOI $1,051,000
hard and soft
Rental 0.40 FAR $108 per sf EGI $24 per sf
hard and soft Expense ratio: 45% of EGI
Office 0.540 FAR $120 per sf Gross Rent: $25 per sf
hard and soft Market occupancy: 92%
Expense ratio: 45% of EGI
Multiunit
15 UPA $108,000 per unit
Monthly Rent: $2,400 per
unit
hard and soft Market occupancy: 95%
Expense ratio: 45% of EGI
A) $16.00 per sf
B) $15.00 per sf
C) $19.50 per sf
D) $14.50 per sf

The second one is a little more tricky because you need to convert acres to SF... So here you go.

Comparable sold for $1.80/SF

First, solve the weighted value of each..
4AC *100% = 4
4AC*40% = 1.6
2AC*20% = 0.4
TOTAL = 6

Commercial = $1.8sf / 6 = $0.30/sf
MU = $0.30 * 40% = $0.12/sf
SU = $0.30 * 20% = $0.06/sf

Then apply to the subject, Convert acres to sf.

3 acres * 43,560sf * $0.30/sf = $39,204
5 acres * 43,560sf * $0.12/sf = $26,136
2 acres * 43,560sf * $0.06/sf = $5,227.20

Total and convert back to sf.

Total = $70,567.20 / 43,560sf = $1.62sf

 

[Terrel L. Shields]

The subject farm property has 80 acres of irrigated cropland, 120 acres of
pasture, and 40 acres of woodland. Comparable A has 150 acres of irrigated
cropland and 80 acres of woodland. Comparable A sold for $735,000. Assuming the
market has indicated that pasture sells for 75% of irrigated cropland prices and
woodland sells for 50% of irrigated cropland prices, what is the value of the subject
farm?
A) $699,200
B) $624,000
C) $768,000
D) $720,000

The answer is none of the above or I screwed up.

Comp
150 IC + 80 WD = $735,000
WD = 50% of IC thus = 40 IC equvilent + 150 IC = 190 IC divided into $735,000 or $3,868
Thus the subject
80 ac IC x $3,868 = 309,440
120 acre x 75% x $3,868 = equals same as 90 acres of IC = $348,120
40 acres x 50% x $3,868 = equals same as 20 acres of IC = 77,360

309,440 + 348,120 + 77,360 = $734,920 (rounding error = $735,000)

Again, COMP = 150 + (80 x 50%) = 190 equivalent ACRES of irrigated cropland
SUBJECT = 80 + (120 x 75%) + (40 x 50%) = 80+90+20 = 190...exactly the same and the value should be exactly the same

 

[Rick Stillman]

I read the first one above and it is simple algebra. If these are challenging you I would guess you need to do a lot more studying as there will be questions a lot harder than the one above.

Terrel is exactly right. Here is another way of doing it.

I won't go into the details of the calculations - Terrel did that very well. The final "base" number of the irrigated acres is 3,868.42, from which the other factors can be derived. The percentages can be worked off that number to finish the subject calculations. (Here they are - Irrigated 80 x 3,868.42 = 309,473.60 + Pasture 120 x 2901.31 = 348,157.20 + Woodland 40 x 1,934.21 = 77,368.40 = 734,999.20. The same (minus rounding), as Terrel pointed out.)

I have encountered many of these types of problems in appraisal tests. The explanation that I have been given is which answer is "most" correct - as they are often all wrong. So it's not so simple, after all.

Terrel's method illustrated the easier way of "counting" acre units only. If you do that, you can arrive at the conclusion very quickly, as the "units" (acres) of each equation will be the same, therefore the answer will be the same.

This is supposed to be precision, right? Wrong - this is supposed to TRICK you, and slow you down during the test - so you are more likely to fail. THAT is the answer the OP was looking for. With that understanding, you can really start to appreciate how deviant the people in charge of the tests really are.

End result - get a solid understanding of the methods, and don't let the idiots distract you. When you're right, you're right. And you should know when you are right.

This was a fun refresher in math. I used to eat these things up - but now I have to deal with idiotic things like UAD and CU issues... So much for skill.

 

[CANative]

I can do these but it is just so dreary.

Good luck on your exam bellagirl.

 

[Pittsburgh Pete]

The answer to A is $735,000.

 

[JTip]

Textbook questions of everyday real life apprasier work.

Right.......

 

[Laughing Heir]

I had at least three problems to solve like this on my exam (Dec 2014). Best of luck on your exam, Bellagirl1.