C1U13 Real Estate Appraising Flashcards
A house is appraised at $423,000, even though it cost $435,000 to build three years earlier. What factor could NOT have contributed to the loss in value?
a. regression
b. gentrification
c. functional obsolescence
d. supply and demand
b. gentrification
Trevor owns a vacant lot and employs an appraiser to determine the property’s:
a. growth
b. reproduction cost
c. replacement cost
d. highest and best use
d. highest and best use
Since the Riverside factory closed, houses in Sunny Acres are taking longer to sell, and prices have gone down. This is a result of:
a. highest and best use
b. supply and demand
c. contribution
d. conformity
b. supply and demand
A house that benefits from the desirability of its neighboring properties is an example of the principle of:
a. balance
b. contribution
c. progression
d. regression
c. progression
A homeowner’s deluxe 5-bedroom house is in a neighborhood of modest 3-bedroom houses. The value of the 5-bedroom house will be affected because of the principle of:
a. substitution
b. scarcity
c. progression
d. regression
d. regression
An improvement to a house may or may not create a corresponding increase in the house’s market value. This is an example of:
a. balance
b. progression
c. contribution
d. regression
c. contribution
The Miejas are looking forward to eventually retiring on the profit they will make from selling their house. Their attitude is an example of:
a. progression
b. growth
c. acquisition
d. anticipation
d. anticipation
House A sold for $867,000 and is comparable to the house being appraised, but it has an extra garage valued at $47,000. What is the adjusted value of house A?
a. $767,000
b. $813,000
c. $820,000
d. $914,000
c. $820,000
To calculate the market value of a 19th-century San Francisco Victorian-style mansion using the cost approach, you probably would use:
a. reproduction cost
b. replacement cost
c. historical building cost
d. cost averaging
b. replacement cost
The cubic-foot method of estimating construction cost is BEST used for:
a. single-family residences
b. manufactured homes
c. industrial properties
d. multifamily residential properties
c. industrial properties
Appraiser Hansen estimated all direct and indirect construction costs of the Harley Building separately, then totaled them. She used:
a. the unit-in-place method
b. the index method
c. the quantity survey method
d. the cost averaging method
c. the quantity survey method
A single-family residence with a one-car garage may be an example of:
a. external obsolescence
b. functional obsolescence
c. economic obsolescence
d. environmental obsolescence
b. functional obsolescence
Houses adjacent to a new highway will probably suffer from:
a. curable external obsolescence
b. incurable functional obsolescence
c. curable functional obsolescence
d. incurable external obsolescence
d. incurable external obsolescence
Which is NOT a form of depreciation?
a. Physical deterioration
b. Straight-line method
c. Economic obsolescence
d. Functional obsolescence
b. Straight-line method
The upper limit of a property’s value usually is determined by:
a. the market comparison approach
b. the cost approach
c. the income approach
d. the sales comparison approach
b. the cost approach
