Chapter 22 Random Flashcards
Where a single-family residence in Vancouver contains a wood burning furnace as its primary heating system, this would be considered an element of:
(1) physical curable depreciation.
(2) functional curable depreciation.
(3) functional incurable depreciation.
(4) physical incurable depreciation.
2
“Reproduction cost” is best defined as:
(1) the current construction cost of a building which would provide the same utility as the subject property.
(2) the current cost of moving the building to a site where the building would represent the highest and best use of that site.
(3) the current cost of constructing an exact replica of the subject property.
(4) the original cost of construction, adjusted for inflation.
3
Functional depreciation can be defined as:
(1) the loss in value caused by an outmoded or inadequate design.
(2) the loss in value caused by changing market conditions which reduce demand for the property.
(3) the loss in value caused by physical wear.
(4) None of the above
1
Which one of the following is TRUE where a comparable property is sold subject to a vendor supplied mortgage at an interest rate lower than the current market rate?
(1) The comparable property may never be used as evidence of market value.
(2) The comparable sale price must be adjusted upward.
(3) The comparable sale price may only be used as evidence of market value.
(4) The comparable sale price must be adjusted downward.
4
In the comparative approach, it is MOST important that the subject building and the comparable buildings be:
(1) recently constructed of average quality construction.
(2) of the same general architectural style.
(3) similar with respect to factors judged important by buyers and sellers.
(4) inclusive of similar types and quality of fixtures.
3
If the cost of developing houses is greater than their market value, what will occur in the short run?
(1) costs will decrease
(2) market value will increase
(3) development will stop
(4) the style of new housing will be changed to reflect the increased costs
3
Which one of the following is termed functional incurable depreciation in a building?
(1) worn carpeting
(2) no air conditioning
(3) narrow hallways
(4) poor landscaping
3
Which one of the following BEST describes curable functional depreciation?
(1) general wear and tear which is easily repaired
(2) an outdated design which can be corrected easily
(3) damage to the interior of a building which can be repaired economically
(4) an outdated design which cannot be corrected easily
2
Sophisticated investors will ultimately determine the value of undeveloped land by:
(1) estimating the value of the land when improved and subtracting the costs of undertaking such a development.
(2) consulting with the owner of the undeveloped land as to his estimate of the land’s value.
(3) asking the advice of a mortgage broker as to the availability of debt financing.
(4) considering the proximity of the property to positive externalities.
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