Ch Final Exam Site Valuation Flashcards by Petra Weise

__________ items are often referred to as part of the “bone structure” of the building.

Long-lived

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“Depreciation is “a loss in property value from _______________.”

Any cause

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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

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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)

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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

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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

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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

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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)

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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)

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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

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

152

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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

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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

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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

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A rectangular lot is 412.15 feet by 618.84 feet. How many acres is that?

5.86

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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)

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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?

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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?

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A triangular shaped lot contains .85 acres and sold for $42,500. How much did it sell for per square foot?

1.15

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A(n) ________________ easement is a positive easement.

Access easement

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A(n) ________________ easement is a positive easement.

Access easement

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An outdated kitchen could cause

Functional obsolescence

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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)

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Deferred maintenance is considered to be __________; the short-lived and long-lived components are __________.

Curable, incurable

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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?

57065. $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?

44832. $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