Chapter 3

Question 1

Direct cost referred as

Answer 1

Hard cost

Question 2

The cost of producing an exact replica of a building or permit

Answer 2

Reproduction cost

Question 3

The current cost of producing a building or improvement with the same utility

Answer 3

Replacement cost

Question 4

Four Methods of estimating cost

Answer 4

Quct
Quality survey
Unit in place
Comparative unit
Trended historical cost

Question 5

Unit in place: items such as the foundation, floor, roof , electrical and the like are considered

Answer 5

Horizontal cost and are expressed as cost per sq ft

Question 6

This method is the easiest, fastest and most widely used method is cost estimation

Answer 6

Comparative unit method

Question 7

Methods of measuring

Answer 7

Indirect

Direct

Question 8

Types of depreciation

Answer 8

Physical deterioration
Functional obsolescence
External (economic) obsolescence

Question 9

Method consist of sales comparison

Capitalization of income method

Answer 9

Indirect methods

Question 10

Method consist of economic age life
Modified economic age life
Observed conditions

Answer 10

Direct methods

Question 11

The loss in value Due to ordinary wear and tear and the forces of nature

Answer 11

Physical deterioration

Question 12

It is not economically feasible to cure these items as of the effective date of the appraisal

Answer 12

Incurable physical deterioration short-lived

Question 13

Two categories in functional obsolescence

Answer 13

Curable functional obsolescence and in curable functional obsolescence

Question 14

The cost approach as promised primarily on the principle of_________which states and informed buyer will not pay more to build a property than the cost of a similar property with equal utility

Answer 14

Substitution

Question 15

Call said occur on the construction site are considered_______cost 

Answer 15

Direct

Question 16

Architectural fees insurance and title expenses are considered _______and are sometimes called soft cost

Answer 16

Indirect cost

Question 17

Cost components such as Floor or roofing are considered __________cost and our expressed as cost per square foot

Answer 17

Horizontal

Question 18

The easiest fastest and most widely used method of estimated cost is the _______method

Answer 18

Comparative unit

Question 19

Applicable to most structure types

based on actual cost
suitable for computerization
is a desirable feature of

Answer 19

Cost manual

Question 20

The difference between the market value of an improvement and it’s cost at the time of the appraisal is termed

Answer 20

Depreciation

Question 21

Five methods of measuring depreciation are

Answer 21

Sales comparison
Capitalization of one method
Economic age life method
Modified economic age life method
Observed condition break down method

Question 22

Curable physical deterioration as measured by

Answer 22

Cost to cure

Question 23

A loss in value to the deficiency modernization or superadequacy within the structure

Answer 23

Functional obsolescence

Question 24

Allison value resulting from a decrease in utility and desirability caused by factors outside the properties boundaries

Answer 24

External obsolescence

Question 25

In curable physical deterioration is measured by the

Answer 25

Age life method

Question 26

Method of estimating depreciation which is most detailed it is used required in writing of demonstration appraisal report

Answer 26

Observed condition or breakdown method

Question 27

If the cost to cure a functional deficiency within a residence exceeds the increase in value added to the property it is called

Answer 27

Incurable functional obsolescence