Ch 6-7-8 Quiz Site Valuation Flashcards
________ obsolescence is usually incurable.
External
A dwelling’s proximity to a busy expressway could result in ________.
External obsolescence
A house is octagon-shaped, and each side measures 22 feet long. How many lineal feet of exterior wall does this house have?
- 22 times 8.
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?
- $40 (rent loss) x 110 = $4,400. (Chapter 8)
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?
4750
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 _______.
Functional obsolescence, incurable
A one story house is rectangular and the dimensions are 22’ x 60’. How many lineal feet are there?
- 22 + 60 + 22 + 60 = 164 lineal feet. (Chapter 6)
A one story house is rectangular and the dimensions are 26’ x 44’. How many lineal feet are there?
- 26 + 44 + 26 + 44 = 140 lineal feet. (Chapter 6)
A one story house is rectangular and the dimensions are 28’ x 48’. How many lineal feet are there?
- 28 + 48 + 28 + 48 = 152 lineal feet (Chapter 6)
A poor floor plan could cause _____.
Functional obsolescence
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?
$63,250. $555,500 - $120,000 = $435,500 depreciated value. $498,750 - $435,500 = $63,250 depreciation. (Chapter 8)
A subject property suffers a value loss of $10,000 due to an outdated kitchen.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?
Functional obsolescence, curable
As a building ages, it is more likely there will be functional obsolescence.
TRUE
Can a brand-new structure exhibit functional obsolescence?
Yes, if the building has a poor floor plan or other functional issues.
Depreciation is a loss in value from _______.
Any cause
Economic life is generally shorter than physical life.
TRUE
External depreciation is ________ part of the structure.
never
External obsolescence frequently affects both the land and building components.
TRUE
External obsolescence is ______.
Either temporary or permanent
External obsolescence is generally incurable.
TRUE
External obsolescence is usually incurable.
TRUE
External obsolescence originates from _______.
Outside the subject property
Functional obsolescence ________ be present in a new building.
can
Functional obsolescence can be categorized as ______.
Curable or incurable
Functional obsolescence can occur as a house _________.
Ages, Is overbuilt, Is built in an unusual design
Functional obsolescence cannot be cured.
FALSE
Functional obsolescence cannot be present in a new building.
FALSE
Functional obsolescence is also called ________.
Functional inutility
Functional obsolescence is sometimes called functional inutility.
TRUE
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?
- 24 + 48 + 24 + 48 = 144 lineal feet x $114.78 = $16,528.32 (Chapter 5)
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?
- 28 + 44 + 28 + 44 = 144 lineal feet x $104.44 = $15,039.36 (Chapter 6)
In a unit-in-place cost estimation, all of the following components are standard:
Electrical system, Foundation, Roof framing, Excavation, Framing, Plumbing
In many cases, _________ obsolescence will be shared by both land and building components.
external
In many cases, external obsolescence will be shared by both land and building components.
TRUE
One way to mathematically estimate and support total economic life is by the __________ method.
Market extraction
Physical and external depreciation are always part of the structure.
FALSE
Physical deterioration can either be curable or incurable.
TRUE
The difference between the cost new and the current value of a property on the same date is called ______.
Depreciation
The least complex method of cost estimating is the _________________ method.
Comparative unit
The Marshall & Swift Residential Cost Handbook can be used for which two cost estimating methods?
Unit-in-place and comparative unit
The Marshall & Swift Residential Cost Handbook can be used to estimate costs using a ___________ method, but not a __________ method.
Comparative unit, quantity survey
The method of cost estimating that falls between the other two cost estimating methods in complexity is the __________ method.
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)
The most complex method of cost estimating is the _________________ method.
Quantity survey. The quantity survey method is the most complex method of cost estimating. (Chapter 6)
The most detailed method for estimating depreciation is the __________ method.
Breakdown
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.
Useful
The period over which improvements to real estate contribute to property value is the definition of ________ life.
Economic
The segregated cost method is another name for the ______________ method.
Unit-in-place
The simplest method for estimating depreciation is the __________ method.
Age-life
Unless a building is brand new, there is always physical deterioration present.
TRUE
Wear and tear on a building is classified as _____.
Physical deterioration
What is another name for the breakdown method of estimating depreciation?
Observed condition method
When using the market extraction method for depreciation we extract ______________.
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)
Which are recognized methods for estimating external obsolescence?
Analysis of market data, Allocation of market-extracted depreciation, Capitalization of income loss
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?
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)
Which of these would be an example of physical deterioration?
Worn out roof shingles
Which statement is TRUE regarding external obsolescence?
It can affect both the land and improvements.
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?
The unit-in-place method of cost estimating
