Chapter 8 Physical characteristic adjustments

Question 1

Items that indicate poor construction practices include:

Answer 1

Drafts
Cracked walls or ceilings
Sagging floors
Unsealed siding
Leaky roofs
Out-of-plumb doors or windows
Gaps in vinyl or Formica
Uneven masonry
Corners not square
Square corners on trim - not mitered

Question 2

Marshall & Swift recognizes the following categories of quality in construction:

Answer 2

Low
Fair
Average
Good
Very good
Excellent

Question 3

When describing the area of a small lot, we usually use
Acres
Square Feet
Rods
Cubic feet

Answer 3

square feet

Question 4

Quality is determined by
What the builder says
The season during which improvements were constructed
The materials and construction practices used during the building process
The marketing program of the contractor

Answer 4

The materials and construction practices used during the building process

Question 5

An appraiser can reasonably assume that
Most homes in a subdivision are of the same general quality
No homes in a subdivision are of the same general quality
Quality has nothing to do with subdivision location
All subdivisions in a geographic area are of the same general quality

Answer 5

most homes in a subdivision are of the same general quality

Question 6

The number of years that have elapsed since construction of an improvement was completed; also called historical or chronological age

Answer 6

actual age

Question 7

The age of property that is based on the amount of observed deterioration and obsolescence it has sustained, which may be different from its chronological age”

Answer 7

effective age

Question 8

The period of time over which a structure or a component of a property may reasonably be expected to perform the function for which it was designed

Answer 8

useful life

Question 9

the period over which improvements to real estate contribute to property value.

Answer 9

economic life

Question 10

CONDITION ADJUSTMENT RANKING

Answer 10

C1-C6

Question 11

We can divide physical defects into three categories:

Answer 11

Deferred maintenance Items that must be fixed right away
Short-lived components that have depreciated
Long-lived components that have depreciate

Question 12

“The period of time over which a structure may reasonably be expected to perform the function for which it was designed” is the definition of \_\_\_\_\_\_\_\_\_\_\_\_\_\_ life.
Physical
Useful
Economic
Effective

Answer 12

useful

Question 13

“The age of property that is based on the amount of observed deterioration and obsolescence it has sustained” is the definition of \_\_\_\_\_\_\_\_\_ age.
Actual
Historical
Chronological
Effective

Answer 13

effective

Question 14

Condition is determined by
Quality
The housing style
The maintenance and care the house has received
The functional utility of the house

Answer 14

the maintenance and care the house has received

Question 15

A unit of comparison used primarily in residential appraisal. No national standard exists on what constitutes a room. The generally accepted method is to consider as separate rooms only those rooms that are effectively divided and to exclude bathrooms.

Answer 15

room count

Question 16

When calculating gross living area

Answer 16

The appraiser should use the exterior building dimensions per floor to calculate the above-grade gross living area of a property.
For units in condo or co-op projects, the appraiser should use interior perimeter unit dimensions to calculate the gross living area.
Garages and basements, including those that are partially above-grade, must not be included in the above-grade room count.

Question 17

Reporting Format:

Answer 17

Line 1: Total Square Footage – Numeric to 5 digits, whole numbers only

Line 1: Finished Square Footage – Numeric to 5 digits, whole numbers only

Line 1: Basement Access – Appraiser must select one value from the specified list (values wo, wu, or in)

Line 2: Room Count/Type – Numeric to 1 digit*

*For bathrooms, the format is n.n – full baths separated from half baths with a period (.).

Line 1: 1000sf750sfwu

Line 2: 1rr1br1.0ba2o

Question 18

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; the efficiency of a building’s use in terms of architectural style, design and layout, traffic patterns, and the size and type of rooms

Answer 18

functional utility

Question 19

In the appraisal of a single-family residence, a finished basement should
Always be counted in the total room count
Be included in total room count only if it has finished flooring
Be calculated as part of the GLA
Be calculated separately from the GLA

Answer 19

be calculated separately from the GLAF

Question 20

A broken windowpane an example of
Deferred maintenance
Incurable depreciation
A short lived item
A long-lived item

Answer 20

DEFERRED MAINTENANCE

Question 21

"Items of wear and tear on a property that should be fixed now to protect the value or income- producing ability of the property, such as a broken window, a dead tree, a leak in the roof, or a faulty roof that must be completely replaced. These items are almost always curable" is the definition of
Functional obsolescence
Short-lived components
Deferred maintenance
Expected repairs

Answer 21

deferred maintenance

Question 22

The concept of \_\_\_\_\_\_\_ life is logical but is of little use to appraisers.
Physical
Economic
Useful
Actual

Answer 22

useful

Question 23

A property sells for $350,000 and the site value is $60,000. The cost new of the improvements is $480,000. What is the dollar amount of depreciation indicated by this sale?
$160,000
$190,000
$250,000
$290,000

Answer 23

$190,000

480,000 - 350,000 + 60,000

Question 24

Which would NOT be considered as an energy efficient item?
Double paned windows
High R-factor insulation
Solar panels
Stainless steel appliances

Answer 24

stainless steel appliances

Question 25

If a property is depreciating at the rate of 1.7% per year, what is its economic life?
58.8 years
60 years
62.2 years
65 years

Answer 25

58. 8 yrs

1. 00 / 1.7

Question 26

A property sells for $295,000 and the site value is $50,000. The reproduction cost of the improvements is $312,000. The house is 12 years old. What is the average annual percent of depreciation?

1. 2%
2. 8%
3. 1%
4. 3%

Answer 26

1.8%

Question 27

"The number of years elapsed since an original structure was built” is the definition of \_\_\_\_\_\_\_\_\_\_\_ age.
Chronological
Effective
Economic
Physical

Answer 27

chronological

Question 28

"Curable, physical deterioration that should be corrected immediately…” is the definition of
Short-lived items
Deferred maintenance items
Long-lived items
Janitorial items

Answer 28

deferred maintenance items

Question 29

Fannie Mae says for units in condominiums, the appraiser should use \_\_\_\_\_\_\_\_\_\_\_\_ dimensions to calculate the Gross Living Area.
Exterior
Interior or exterior
Interior
Cubic footage

Answer 29

interior

Question 30

A property sells for $450,000 and the site value is $120,000. The cost new of the improvements is $572,000. What is the percentage of depreciation?
24%
36%
42%
58%

Answer 30

42%

$450,000 - $120,000 = $330,000.
$572,000 - $330,000 = $242,000.
$242,000 ÷ $572,000 = .42 or 42%.

Question 31

When describing the area of a large lot (1 acre or more), we usually use
Acres
Square feet
Rods
Cubic feet

Answer 31

acres

Question 32

Historical age is another name for \_\_\_\_\_\_\_\_\_\_\_\_\_ age.
Physical
Effective
Economic
Chronological

Answer 32

chronological