Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

03 Site Valuation and Cost Approach > Ch 6-7-8 Quiz Site Valuation > Flashcards

Ch 6-7-8 Quiz Site Valuation Flashcards

1
Q

________ obsolescence is usually incurable.

A

External

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

A dwelling’s proximity to a busy expressway could result in ________.

A

External obsolescence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

A house is octagon-shaped, and each side measures 22 feet long. How many lineal feet of exterior wall does this house have?

A
  1. 22 times 8.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

A house would rent for $1,000 per month if it had air conditioning. Without air conditioning, it can only rent for $960. The appropriate GRM for that type property is 110. What is the amount of functional obsolescence?

A
  1. $40 (rent loss) x 110 = $4,400. (Chapter 8)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

A house would rent for $1,100 per month if it had air conditioning. Without air conditioning, it can only rent for $1,050. The appropriate GRM for that type property is 95. What is the amount of functional obsolescence?

A

4750

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

A layout deficiency in a house results in a loss in value of $5,000. The layout deficiency could be corrected at a cost of $6,500. This depreciation is categorized as _______.

A

Functional obsolescence, incurable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

A one story house is rectangular and the dimensions are 22’ x 60’. How many lineal feet are there?

A
  1. 22 + 60 + 22 + 60 = 164 lineal feet. (Chapter 6)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

A one story house is rectangular and the dimensions are 26’ x 44’. How many lineal feet are there?

A
  1. 26 + 44 + 26 + 44 = 140 lineal feet. (Chapter 6)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

A one story house is rectangular and the dimensions are 28’ x 48’. How many lineal feet are there?

A
  1. 28 + 48 + 28 + 48 = 152 lineal feet (Chapter 6)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

A poor floor plan could cause _____.

A

Functional obsolescence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

A single-family property recently sold for $555,500. The site value is $120,000. The cost new of the dwelling is $498,750. What is the amount of accrued depreciation to the dwelling?

A

$63,250. $555,500 - $120,000 = $435,500 depreciated value. $498,750 - $435,500 = $63,250 depreciation. (Chapter 8)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

A subject property suffers a value loss of $10,000 due to an outdated kitchen. This kitchen can be updated at a cost of $9,000. What type of depreciation is this?

A

Functional obsolescence, curable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

As a building ages, it is more likely there will be functional obsolescence.

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Can a brand-new structure exhibit functional obsolescence?

A

Yes, if the building has a poor floor plan or other functional issues.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Depreciation is a loss in value from _______.

A

Any cause

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Economic life is generally shorter than physical life.

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

External depreciation is ________ part of the structure.

A

never

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

External obsolescence frequently affects both the land and building components.

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

External obsolescence is ______.

A

Either temporary or permanent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

External obsolescence is generally incurable.

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

External obsolescence is usually incurable.

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

External obsolescence originates from _______.

A

Outside the subject property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Functional obsolescence ________ be present in a new building.

A

can

24
Q

Functional obsolescence can be categorized as ______.

A

Curable or incurable

25
Q

Functional obsolescence can occur as a house _________.

A

Ages, Is overbuilt, Is built in an unusual design

26
Q

Functional obsolescence cannot be cured.

A

FALSE

27
Q

Functional obsolescence cannot be present in a new building.

A

FALSE

28
Q

Functional obsolescence is also called ________.

A

Functional inutility

29
Q

Functional obsolescence is sometimes called functional inutility.

A

TRUE

30
Q

If the exterior walls of a house that is 24 X 48 cost $114.78 per lineal foot, what would be the cost of the exterior walls on a unit-in-place basis?

A
  1. 24 + 48 + 24 + 48 = 144 lineal feet x $114.78 = $16,528.32 (Chapter 5)
31
Q

If the exterior walls of a house that is 28 X 44 cost $104.44 per lineal foot, what would be the cost of the exterior walls on a unit-in-place basis?

A
  1. 28 + 44 + 28 + 44 = 144 lineal feet x $104.44 = $15,039.36 (Chapter 6)
32
Q

In a unit-in-place cost estimation, all of the following components are standard:

A

Electrical system, Foundation, Roof framing, Excavation, Framing, Plumbing

33
Q

In many cases, _________ obsolescence will be shared by both land and building components.

A

external

34
Q

In many cases, external obsolescence will be shared by both land and building components.

A

TRUE

35
Q

One way to mathematically estimate and support total economic life is by the __________ method.

A

Market extraction

36
Q

Physical and external depreciation are always part of the structure.

A

FALSE

37
Q

Physical deterioration can either be curable or incurable.

A

TRUE

38
Q

The difference between the cost new and the current value of a property on the same date is called ______.

A

Depreciation

39
Q

The least complex method of cost estimating is the _________________ method.

A

Comparative unit

40
Q

The Marshall & Swift Residential Cost Handbook can be used for which two cost estimating methods?

A

Unit-in-place and comparative unit

41
Q

The Marshall & Swift Residential Cost Handbook can be used to estimate costs using a ___________ method, but not a __________ method.

A

Comparative unit, quantity survey

42
Q

The method of cost estimating that falls between the other two cost estimating methods in complexity is the __________ method.

A

Unit-in-place. The comparative unit method is the simplest method of cost estimating, and the quantity survey method is the most complex. The unit-in-place method is between these two extremes in terms of difficulty and complexity. (Chapter 6)

43
Q

The most complex method of cost estimating is the _________________ method.

A

Quantity survey. The quantity survey method is the most complex method of cost estimating. (Chapter 6)

44
Q

The most detailed method for estimating depreciation is the __________ method.

A

Breakdown

45
Q

The period of time over which a structure or a component of a property may reasonably be expected to perform the function for which it was designed is the definition of _______ life.

A

Useful

46
Q

The period over which improvements to real estate contribute to property value is the definition of ________ life.

A

Economic

47
Q

The segregated cost method is another name for the ______________ method.

A

Unit-in-place

48
Q

The simplest method for estimating depreciation is the __________ method.

A

Age-life

49
Q

Unless a building is brand new, there is always physical deterioration present.

A

TRUE

50
Q

Wear and tear on a building is classified as _____.

A

Physical deterioration

51
Q

What is another name for the breakdown method of estimating depreciation?

A

Observed condition method

52
Q

When using the market extraction method for depreciation we extract ______________.

A

A lump sum amount. An advantage of the market extraction method is that the total depreciation that is extracted is a lump sum estimate that rolls in together all sources of depreciation. (Chapter 8)

53
Q

Which are recognized methods for estimating external obsolescence?

A

Analysis of market data, Allocation of market-extracted depreciation, Capitalization of income loss

54
Q

Which method of cost estimating requires the estimator to estimate how many 2 x 4 studs and sheets of plywood would be necessary to construct the subject building?

A

Quantity survey. The quantity survey method would require the estimator to estimate how many pounds of nails, 2 x 4 studs, and sheets of plywood are required, the cost of each and the cost of labor to install each item. (Chapter 6)

55
Q

Which of these would be an example of physical deterioration?

A

Worn out roof shingles

56
Q

Which statement is TRUE regarding external obsolescence?

A

It can affect both the land and improvements.

57
Q

You are reading an appraisal report prepared by another appraiser and you see a reference to the “Segregated Cost Method”. What does this term mean?

A

The unit-in-place method of cost estimating

03 Site Valuation and Cost Approach (13 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions