Ch 11 - Real Estate Appraisal

Question 1

When applying the market data or sales comparison approach to value, an appraiser would most likely use:

Answer 1

sold properties in the same geographic area.

Question 2

The cost method of appraisal uses all of the following, EXCEPT:

Answer 2

plottage reduction

Question 3

The term depreciation is best defined as loss in value due to:

Answer 3

physical wear and tear.

functional obsolescence.

regression.

Any of the above

Question 4

Which of the following statements is correct?

Answer 4

Scheduled Gross Income is the total amount of income a property could generate if it were 100% occupied for 100% of the year.

Question 5

Market value is:

Answer 5

the price a willing seller will accept and a willing buyer will pay.

Question 6

A capitalization rate incorporates the:

Answer 6

return on land and building, and recapture of building

Question 7

In a properly developed community, values are upheld by:

Answer 7

conformity to land use objectives

Question 8

The features that usually increase the value of residential property, such as a water view, nice landscaping, quiet neighborhood, etc. are known as __________ .

Answer 8

amenities

Question 9

The method of appraisal that carries the most weight in the valuation of residential property is known as the:

Answer 9

market data approach

Question 10

The highest and best use of a property is the use that:

Answer 10

complies with zoning and deed restrictions and that results in producing the greatest net return for the owner.

Question 11

A home having only one bathroom located next to the kitchen suffers from:

Answer 11

functional obsolescence.

Question 12

Which of the following is NOT a characteristic of value?

Answer 12

Cost

Question 13

An appraisal by a certified appraiser is best defined as:

Answer 13

an opinion of value as of a specific date.

Question 14

Which approach to value would an appraiser be concerned with when calculating the present worth of future benefits?

Answer 14

Income approach

Question 15

Effective age is the term used to define the:

Answer 15

age the appraiser believes to reflect the condition of the improvement.

Question 16

To appraise a special-use building, an appraiser would most likely use the:

Answer 16

cost approach.

Question 17

Sean hired an appraiser to prepare a feasibility study for adding a swimming pool to a 12-unit apartment building. What basic principle of appraising would the appraiser use?

Answer 17

Contribution

Question 18

Which of the following type of depreciation is always incurable?

Answer 18

Economic obsolescence

Question 19

Chase bought a lot and constructed a high-quality home valued at $400,000 in a neighborhood of homes valued at $290,000. In appraisal terminology, the home would experience an immediate loss in value due to the principle of __________ .

Answer 19

regression

Question 20

If an appraiser uses more than one approach to value, the process of analysis and weighing of the differing values to determine an opinion of value is known as:

Answer 20

correlation or reconciliation of values.