Ch Final Exam Site Valuation Flashcards
__________ items are often referred to as part of the “bone structure” of the building.
Long-lived
“Depreciation is “a loss in property value from _______________.”
Any cause
A 6 year old dishwasher has an expected life of 10 years. If the replacement cost of the dishwasher is $900, the amount of short-lived depreciation would be
540
A 9 year old water heater has an expected life of 15 years. If the replacement cost of the water heater is $800, the amount of short-lived depreciation would be ____.
- 9 / 15 = 60% depreciation. $800 x 60% = $720. (Chapter 8)
A comparable new property recently sold for $420,000 and contained 2,570 SF of Gross Living Area (GLA). You estimate the site value to be $100,000 and the value of the site improvements to be $30,000. There was a garage with a replacement cost of $35,000. How much did the improvements (GLA) contribute to the sale price on a per SF basis?
99.22
A comparable new property recently sold for $445,000 and contained 2,630 SF. You estimate the site value to be $90,000 and the value of the site improvements to be $25,000. What portion of the selling price would be attributed to the building improvements?
330000
A house would cost $400,000 to build new. It is 15 years old and has sustained a total of 20% depreciation. It sits on a site worth $85,000. What is its value by the cost approach?
405000
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?
- $50 (rent loss) x 95 = $4,750. (Chapter 8)
A house would rent for $900 per month if it had air conditioning. Without air conditioning, it can only rent for $870. The appropriate GRM for that type property is 120. What is the amount of functional obsolescence?
3600
A one story house is rectangular and the dimensions are 28’ x 48’. How many lineal feet of exterior walls are there?
152
A parcel contains 5.5 acres and would be permitted to have 5 commercial units. It is worth $40,000 per acre as residential land and $50,000 per permitted unit as a commercial site. If the zoning allows both, what is the highest and best use?
Commercial
A property sold for $250,000. The reproduction cost of the building was $320,000 and its estimated deprecation was 70%. By extraction, what is the value of the land?
154000
A rectangular lot is 265.12 feet by 346.82 feet? It sold for $50,000. How much did it sell for per acre?
23697
A rectangular lot is 412.15 feet by 618.84 feet. How many acres is that?
5.86
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 site has a total of 110 acres. However, 17 acres is in a protected wetland area and 11 acres is encumbered by a utility easement. What is the net usable area?
82
A site has a total of 110 acres. However, 17 acres is in a protected wetland area and 11 acres is encumbered by a utility easement. What is the net usable area?
82
A triangular shaped lot contains .85 acres and sold for $42,500. How much did it sell for per square foot?
1.15
A(n) ________________ easement is a positive easement.
Access easement
A(n) ________________ easement is a positive easement.
Access easement
An outdated kitchen could cause
Functional obsolescence
Curable items are those items of physical deterioration or functional obsolescence that are ___________ to cure.
Economically feasible. Curable items are defined as items of physical deterioration or functional obsolescence that are economically feasible to cure. (Chapter 8)
Deferred maintenance is considered to be __________; the short-lived and long-lived components are __________.
Curable, incurable
Deferred maintenance is measured by the _______.
Cost to cure
Depreciation is the difference between the ____________ and the ________________ of a property on the same date.
Cost new, current value
Depreciation is the difference between the ____________ and the ________________ of a property on the same date.
Cost new, current value
Direct costs are sometimes called ________ costs.
Hard
Distances are best described as
Bounds
External obsolescence ___________ affects both the land and building components.
frequently
External obsolescence is _________ incurable.
generally
External obsolescence is _______.
Either temporary or permanent
Framing and foundation are examples of _________ items.
Long-lived
Functional obsolescence may be curable depending on whether the cost to cure will result in a value increment that is at least equal to the cost to cure.
TRUE
If a property has a ground rent of $90,000 per year, which is market rent, and the appropriate capitalization rate is 12%, what is the value of the land, by the ground rent capitalization method?
750000
If a property has a ground rent of $90,000 per year, which is market rent, and the appropriate capitalization rate is 12%, what is the value of the land, by the ground rent capitalization method?
750000
If the exterior walls of a house that is 24 X 44 cost $118.72 per lineal foot, what would be the cost of the exterior walls on a unit-in-place basis?
16146
In the Government Survey System, each quarter section contains _____ acres.
160
In the Government Survey System, each quarter section contains _____ acres.
160
In the most commonly used land appraisal form, which is one of the line items pre-printed on the form for adjustment?
Location
In the most commonly used land appraisal form, which is one of the line items pre-printed on the form for adjustment?
Location
legal fees would be included in the _________ costs.
Indirect
legal fees would be included in the _________ costs.
Indirect
One way to mathematically calculate total economic life is by the __________ method.
Market extraction
Physical deterioration that should be corrected immediately is called _______.
Deferred maintenance
Price per ______________ is a common measure of comparison when appraising waterfront and commercial properties?
Front foot
Studs and roof rafters are examples of ______________ items.
Long-lived
The __________ use to which a site or improved property is put until a different use becomes ______________ is the definition of interim use.
Temporary, maximally productive
The ____________ sale price of homes in a market area and the ___________ land sale price in that market area could be used in calculating land values by the allocation method.
Median, median
The ability of a property or building to be useful and to perform the function for which it is intended according to current market tastes and standards is the definition of _______.
Functional utility
The allocation method and the extraction method of site valuation have frequent application in __________________ .
Both rural and urban areas
The contract cost for constructing a house in June 2005 was $242,555. The index for that month was 205.2 and the current index is 288.8. What is the estimated cost to build the house today?
341374
The cost approach has ____________ applicability as a property ages.
Diminishing
The cost to construct a building “embodying all the deficiencies, ____________ , and ____________ of the subject building” is the reproduction cost.
Superadequacies, obsolescence
The cost to construct a building that is “a substitute for the building being appraised, using __________ materials and _______ standards, design, and layout” is the replacement cost.
Modern, current
The house you are appraising has a total cost new of $244,085. It is 15 years old and has an estimated remaining economic life of 45 years. The cost to cure deferred maintenance items is $1,225. Replacement cost of short lived items have been identified totaling $14,600. What is the amount of long-lived depreciation attributable to the building?
- $244,085 - $1,225 (deferred maintenance) - $14,600 (Short lived items cost) = $228,260 long lived items cost. Depreciation is 15 / 60 = 25%. $228,260 x .25 = $57,065. (Chapter 8)
The house you are appraising has a total replacement cost new of $214,552. It is 15 years old and has an estimated remaining economic life of 45 years. The cost to cure deferred maintenance items is $825. Short lived items have been identified totaling $34,400. What is the amount of long-lived depreciation attributable to the building?
- $214,552 - $825 - $34,400 = $179,327 long lived items. Depreciation is 15 / 60 = 25%. $179,327 x .25 = $44,831.75. (Chapter 8)
The impairment of functional capacity of improvements according to market tastes and standards is the definition of _____.
Functional obsolescence
The most detailed and comprehensive way to estimate depreciation is the _________ method.
Breakdown
The subject is a building with 4 apartments without air conditioning, in a market where air conditioning is standard and expected by purchasers. If it had been installed when the building was built, it would have cost $8,000 but the cost of retrofitting now is $9,600. Installing A/C would allow the owner to raise rents and increase his gross monthly rent by a total of $80. The current gross rent multiplier (GRM) is 110. What type of depreciation is this?
Functional obsolescence, incurable. The loss in value is $9,600 and the increase in value for installing air conditioning is $8,800 ($80 x 110). Therefore the functional obsolescence is incurable. (Chapter 8)
The subject property has a total value of $280,000 by the sales comparison approach. A competitive neighborhood nearby has home sales with a median value of $250,000, and recent lot sales at $75,000. By allocation, what would be the value of the subject land?
84000
$75,000 x 100 / $250,000 = 30
30% x $280,000 = $84,000
The___________________ method is another name for the segregated cost method.
Unit-in-place
When applying age-life ratios we utilize the _______ lives of those components.
Useful
When estimating up the physical depreciation in a structure utilizing the breakdown method, we first address any ___________ items.
Deferred maintenance
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)
When we adjust for Market Conditions, we usually make _______________ adjustments.
Percentage based
Which of the following would be considered a site improvement?
municipal water
Which would be an example of deferred maintenance?
Broken window
Which would be an example of indirect costs?
Insurance during construction
Which would be short-lived items?
Water heater, Carpeting, Roof cover
You examine a construction contract to build a 2,156 square foot house. The total cost is $295,450. The site improvements cost $26,000. How much is the indicated cost per square foot of the improvements?
124.98
You examine a construction contract to build a 2,824 square foot house and the total cost, excluding the site and site improvements, is $262,115. How much is the indicated cost per square foot?
92.82
You find a comparable sale that recently sold for $300,000. The typical land value to property value ratio in that area is 30:70. By allocation, what is the value of the land in that comparable sale?
90000
