Chapter 22 - Direct Comparison And Cost Approach

Question 1

When using the direct comparison approach, what property do you add and subtract from

Answer 1

Comparable Property

Question 2

What is the formula for calculating the cost method of appraisal?

Answer 2

Site value + cost of improvements - depreciation = market value

Question 3

What is the single most important quality of real estate?

Answer 3

Geographical location

Question 4

A physical or functional deprecation that can be corrected economically is called?

Answer 4

Curable

Question 5

A physical or functional depreciation that cannot be corrected economically is called?

Answer 5

Incurable

Question 6

Damages that can be corrected economically such as poor decoration, broken fittings and loose boards can be classified as?

Answer 6

Physical curable depreciation

Question 7

Wear and tear to structural members and foundations where repairs are likely to involve significant cost are?

Answer 7

Physical incurable