Site Valuation and Cost Approach Flashcards
1 acre = ___ square chains
1 acre = 10 square chains
1 Chain = ___ Feet, or ___ Rods
1 Chain = 66 Feet, or 4 Rods
1 Furlong = ___Feet, or ___ Chains
1 Furlong = 660 Feet, or 10 Chains
1 of 6
The four economic factors that are necessary to create value are utility, _____________, ___________, and _______________.
- Scarcity, demand, purchasing power
- Desire, effective demand, purchasing power
- Effective purchasing power, exclusivity, demand
- Scarcity, desire, effective purchasing power
Scarcity, desire, effective purchasing power
1 Rod = ___ Feet, or ___ Links
1 Rod = 16½ Feet, or 25 Links
1 square mile is ____ acres
1 square mile is 640 acres
A building component or site improvement expected to have the same useful life as the entire structure, is a _______________.
- Long-lived item
- Short-lived item
- Long-lived component
- Physical component
Long-lived item
A building component with an expected remaining economic life that is shorter than the remaining economic life of the entire structure defines ____________.
- A long-lived item
- A short-lived item
- Deferred maintenance
- Short-lived depreciation
A short-lived item
A building has an interior height of 20 feet. If the current local market for that type of building wanted a 30-foot height, then the subject would suffer a loss in value due to a:
- Physical inadequacy
- Functional inadequacy
- Functional superadequacy
- Outmoded item
Functional inadequacy
A corner location is most desirable for a(n) __________ property.
- Residential
- Retail
- Industrial
- Apartment
Retail
A foundation with 4 foot thick walls would called ____________.
- A superadequacy
- An overbuilding
- Supportable value
- Superfluous
A superadequacy
“A list of expressed assurances and limitations on land use; often found in contracts between a land subdivider and a lot purchaser” is the definition of:
- Deed restrictions
- Conditions, Covenants and Restrictions
- Building Code
- Transferable Development Rights
Conditions, Covenants and Restrictions
A loss in property value from any cause is called _____________.
- Obsolescence
- Depreciation
- Decline
- Deterioration
Depreciation
A lot that has all clearing and grading completed, with all public utilities that are available at the property line and all engineering and adjoining roads completed is called a(n) ________________.
- Approved lot
- Finished lot
- Buildable lot
- Plat
Finished lot
A lot that has all clearing and grading completed, with all public utilities that are available at the property line and all engineering and adjoining roads completed is called a(n) ________________.
- Municipal lot
- Improved lot
- Finished lot
- Approved lot
Finished lot
A map or sketch of an individual property that shows property lines and may include features such as soils, building locations, vegetation, and topography is called a:
- Plot
- Plat
- Parcel
- Survey
Plat
“A method of estimating land value in which sales of improved properties are analyzed to establish a typical ratio of land value to total property value and this ratio is applied to the property being appraised or the comparable sale being analyzed” is the definition of the _________________ method of land valuation.
- Allocation
- Extraction
- Land Residual
- Ground Rent capitalization
Allocation Method
“A method of estimating land value in which the depreciated cost of the improvements on the improved property is calculated and deducted from the total sale price to arrive at an estimated sale price for the land” is the definition of the ________________ method of land valuation.
- Allocation
- Extraction
- Land Residual
- Ground Rent capitalization
Extraction
“A method of estimating land value in which the net operating income attributable to the land is isolated and capitalized to produce an indication of the land’s contribution to the total property” is the definition of the _____________________ method of land valuation.
- Discounted Cash Flow
- Extraction
- Land Residual
- Ground Rent capitalization
Land Residual
A partially enclosed body of water where saltwater from the sea mixes with freshwater from rivers, streams, and creeks is called a(n) _____________.
- Wetlands
- Tidewater
- Marsh Land
- Estuary
Estuary
A “perc” test is used to measure the __________ of the soil.
- Strength
- Composition
- Drainage
- Stability
Drainage
A Pole and a __________ are the same thing.
- Rod
- Chain
- Furlong
- Link
Rod
A Pole and a __________ are the same thing.
- Rod
- Chain
- Furlong
- Meter
Rod
A property would be in a FEMA Flood Hazard Area if it is located in Zone _______.
- A only
- C only
- A or V
- A or X
A or V
A property would be in a FEMA Flood Hazard Area if it is located in Zone:
- A only
- C only
- A or V
- A or X
A or V
A record showing the location, size, and owner of each plot of land in a stated area is called a ______________. More Definitions,
- Plat book
- Deed book
- Legal description
- Assessment map
Plat book
A record showing the location, size, and owner of each plot of land in a stated area is called a ______________.
- Plat book
- Deed
- Cadastral Record
- Registry
Plat book
A swimming pool in Maine would suffer from ________________.
- Physical inadequacies
- Functional obsolescence
- External obsolescence
- Underutility
Functional obsolescence
A vacant land parcel contains 5.35 acres. It is worth $75,000 per acre as residential land, and $375,000 as a commercial site. If the zoning allows both, what is the highest and best use?
- Commercial
- Either
- Residential
- Both
Residential
A vacant land parcel contains 5.35 acres. It is worth $75,000 per acre as residential land, and $450,000 as a commercial site. If the zoning allows both, what is the highest and best use?
- Commercial
- Either
- Residential
- Both
Commercial
A vacant land parcel contains 7.2 acres. It is worth $60,000 per acre as residential land, and $375,000 as a commercial site. If the zoning allows both, what is the highest and best use?
- Commercial
- Interim use
- Not enough information is available
- Residential
Residential
A(n) ____________ means to study or scrutinize - to discuss meaning.
- Critique
- Diagnosis
- Analysis
- Analogy
Analysis
Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat is the definition of _________________.
- Fee Simple Estate
- Free simple
- Leasehold Estate
- Life estate
Fee Simple Estate
Access to rail lines, navigable waterways, and Interstate highways are important to ____________ land.
- Agricultural
- Residential
- Retail
- Industrial
Industrial
According to Joseph Rabianski, author of the assigned reading article “Comments on the Concept and Definition of Highest and Best use,” why should the term “adequately supported” be removed from the definition of highest and best use?
- It is too stringent a requirement
- It is too weak and vague
- Highest and best use is just an opinion and does not require support
-
It is too weak and vague
According to the required reading, how many definitions of highest and best use appear in The Appraisal of Real Estate?
- Zero
- One
- Two
- Three
Three
All base costs in the MVS are calculated to include the type of heating and/or cooling system listed for that class and quality level – in a ________ climate.
- Mild
- Moderate
- Average
- Extreme
Moderate
All of these are considered to be “First Level adjustments”, EXCEPT for ____________________.
- Market Conditions
- Financing Terms
- Property Rights Conveyed
- Physical Conditions
Physical Conditions
All of these are negative easements, EXCEPT _______________.
- Conservation Easements
- Right of way access.
- Historic Preservation Easements
- Life Interests
Right of way access.
All of these are negative easements, EXCEPT
- Conservation Easements
- Historic Preservation Easements
- Life Interests
- Right of way access
Right of way access
All of these terms mean the same thing, EXCEPT for ___________.
- Actual age
- Effective age
- Historical age
- Chronological age
Effective age
All of these terms mean the same thing, EXCEPT for _________________.
- Actual age
- Effective age
- Historical age
- Chronological age
Effective age
An alternative to cost per square foot for a warehouse is the cost per ________.
- Lineal foot
- Cubic foot
- Square foot
- Vertical foot
Cubic foot
An appraiser is trying to compile a list of potential legal uses for a piece of vacant property. What problem might he encounter in making this determination?
- Legality is subject to manipulation by local officials
- The legality of a use can only be determined after a lengthy court case
- Most communities throughout the U.S. do not have zoning ordinances
- All of these
Legality is subject to manipulation by local officials
An easement for ingress and egress is an example of a ______________ easement.
- Negative
- Conservation
- Gross
- Positive
Positive
“An exact description that enables the real estate to be located and identified” is the definition of:
- Plat
- Survey description
- Legal description
- Title
Legal description
An interest in real estate restricting future land use to preservation, conservation, wildlife habitat, or some combination of those uses is the definition of _____________ easement.
- Conservation
- Historic Preservation
- Environmental
- Green
Conservation
An interest in real estate restricting future land use to preservation, conservation, wildlife habitat, or some combination of those uses is the definition of _______________ easement.
- Historic Preservation
- Licensing
- Air rights
- Conservation
Conservation
Appraisal fees are part of _________________ costs.
- Direct
- Indirect
- Hard
- Entrepreneurial
Indirect
Assemblage is _______________.
- A value
- A cost
- The same as plottage
- The first step in the life cycle
A cost
Assemblage (cost) is the process of joining several parcels to form a larger parcel; the resulting increase in value is called plottage (value)
Bearings are called _________.
- Bounds
- Headings
- Metes
- Angles
Metes
Bearings are called _________.
- Bounds
- Links
- Metes
- Angles
Metes
Building permits are part of _________________ costs.
- Direct
- Indirect
- Soft
- Entrepreneurial
Direct
CC&Rs are commonly found in _______________.
- Subdivisions
- School buildings
- Agricultural areas
- Industrial areas
Subdivisions
CC&Rs are commonly found in _______________________.
- Farms
- Industrial parks
- Subdivisions
- Medical facilities
Subdivisions
Class C buildings have _________________________ construction.
- Wood frame
- Masonry or reinforced concrete
- Steel
- Prefabrcated
Masonry or reinforced concrete
Class __ buildings have combustible construction.
- A
- S
- C
- D
D
Class ___ buildings have prefabricated structural members.
- B
- C
- S
- D
S
Columns or beams obstructing open space would be classified as what type of functional obsolescence?
- Layout problem
- Inadequacy
- Superadequacy
- Deferred maintenance
Layout problem
Contractor’s overhead and profit are part of _________________ costs.
- Direct
- Indirect
- Soft
- Entrepreneurial
Direct
Cost data may be obtained from all of these sources EXCEPT for ___________.
- Appraiser’s files
- Cost estimating services
- Assessor’s offices
- Local building contractors
Assessor’s offices
Cost manuals, such as the Marshall Valuation Service, can be used to calculate which kinds of costs?
- Comparative Unit only
- Unit-in-Place only
- Comparative Unit and Unit-in-Place
- Comparative Unit, Unit-in-Place, and Quantity Survey
Comparative Unit and Unit-in-Place
Deferred maintenance is always considered to be _________________.
- Curable
- Incurable
- Long-lived
- Short-lived
Curable
Depreciation is defined as a loss in value from:
- Wear and tear
- Physical or functional causes
- Any cause
- Obsolescence
Any cause
Difference between Adjacent vs Adjoining
**“Adjacent” in some legal dictionaries suggests two objects that are very close, but not necessarily touching. “Adjoining”definitely denotes two objects that are joined - that is, touching. **
Difference between “contiguous” and “contiguity”
**“Contiguous” does not necessarily imply two objects actually touching, but in some legal dictionaries is taken to mean two objects that are close, but definitely not touching. “Contiguity” is sometimes defined as implying actual joining. **
Difference between due vs true
Due, true: Older legal descriptions sometimes made reference to “due” or “true” North as a basis of bearings, and it is generally held by the courts that these words had definable differences in meaning, with “due” meaning northerly (not precisely located), and “true” implying location of North by astronomical or solar observations
Each piece of real estate has _______________ highest and best use(s).
- Only one
- At least one
- Two or more
- Many
At least one
Each section is theoretically one square mile, or ___ acres
Each section is theoretically one square mile, or 640 acres
(West & North sections of a township were used for error and curvature correction, and are often smaller)
Each township has ___ numbered sections, starting in ____ corner
Each township has 36 numbered sections, starting in the Northeast corner
Economic feasibility is indicated if the cost to cure is __________ or ________ the anticipated increase in the value of the property.
- Equal to, more than
- At least equal to, more than
- At least equal to, less than
- Equal to, less than
Equal to, less than
Economic theory holds that supply and demand tend to move toward a point of:
- Equilibrium
- Saturation
- Proportionate balance
- Disequilibrium
Equilibrium
Entrepreneurial incentive is the ___________ profit. Entrepreneurial profit is the __________on a development or improvement.
- Actual, estimated profit
- Expectation of future, profit actually earned
- Estimated, profit potentially earned,
- True, profit and loss
Expectation of future, profit actually earned
Expansive soils may commonly be found in the:
- Northeast
- South
- Midwest
- Southwest and Plains States
Southwest and Plains States
External obsolescence is either _______________________.
- Curable or incurable
- Temporary or permanent
- Generic or pertinent
- Primary or secondary
Temporary or permanent
External obsolescence is more commonly __________.
- Next door
- Internal
- Curable
- Market wide
Market wide
Fannie Mae says you _______________ to do a Cost Approach.
- Are not required
- Are required
- Occasionally required
- May wish
Are not required
Farm and ranch land values are often measured by the _____________ of the land.
- Productivity
- Topography
- Bearing strength
- P.H.
Productivity
Foam and concrete foundations are called:
- SIPs
- CIFs
- ICFs
- PCFs
ICFs
ICF stands for Insulated Concrete Forms. Insulated Concrete Forms (ICF) are hollow foam blocks that are stacked into the shape of the exterior walls of a building, reinforced with steel rebar, and then filled with concrete.
Functional obsolescence is defined as the impairment of functional capacity of improvements according to __________________.
- Typical standards
- Comparable standards
- Code standards
- Market tastes and standards
Market tastes and standards
Functional obsolescence is defined as the impairment of functional capacity of improvements according to ____________________.
- Market value
- Typical standards
- Market tastes and standards.
- Code standards
Market tastes and standards.
Functional obsolescence is measured by comparing the subject improvements to the ideal improvement as identified _____________________.
- In the Scope of work
- In the Improvements section
- In the highest and best use analysis
- By the client
In the highest and best use analysis
Functional obsolescence is related to which of the four basic characteristics of value?
- Scarcity
- Utility
- Desire
- Transferability
Utility
Functional obsolescence is related to which of the four basic characteristics of value?
- Utility
- Scarcity
- Desire
- Transferability
Utility
Functional obsolescence is sometimes called:
- Functional inutility
- Functional utility
- External obsolescence
- Physical inutility
Functional inutility
Functional obsolescence is treated as a loss in value in which Approach to Value?
- Sales Comparison Approach
- Cost Approach.
- Income Approach.
- All three Approaches
All three Approaches
Functional obsolescence may be found in what type(s) of building?
- New buildings only
- Old buildings only
- Custom designed buildings only
- Any type
Any type
Functional obsolescence:
- Can be curable or incurable
- Is always curable
- Is always incurable
- Is curable if the cost to cure is at least as much as the increase in value
Can be curable or incurable
Highest and best use is defined as “the ______________ and _________________use of vacant land or an improved property …”
- Physically possible, legal
- Most probable, most profitable
- Appropriately supported, most probable
- Reasonably probable, legal
Reasonably probable, legal
Highest and best use of a land or site as though vacant is generally defined as: Among all reasonable, alternative uses, the use that yields the highest present land value, after payments are made for _______________________________.
- Labor
- Capital
- Coordination
- All of these
All of these
If a building was recently built, you may be able to ascertain the contract cost from any of these sources, EXCEPT _____________.
- Marshall and Swift
- Builder
- Local building department
- Lender
Marshall and Swift
If a property exhibits a large or unusual amount of depreciation, then the most accurate cost estimate method to use would be the _______________ cost estimate.
- Modified
- Replacement
- Both reproduction and replacement
- Reproduction
Reproduction
If a property is older or exhibits unusual construction, then the most accurate cost estimate method to use would be the _______________ cost estimate.
- Reproduction
- Replacement
- Both reproduction and replacement
- Substitution
Reproduction
If costs do not change in the same relationship to values, construction costs may get out of synch with current values. This is an example of the principle of:
- Supply and Demand
- Conformity
- Substitution
- Change
Supply and Demand
If the scope of work specified by the client does not permit development of credible assignment results, the appraiser must either change the scope of work to what he or she determines is necessary to develop credible assignment results or:
- Put a disclosure in the appraisal report
- Associate with another appraiser
- Renegotiate the employment contract
- Withdraw from the assignment
Withdraw from the assignment
“Improved land or a lot in a finished state so that it is ready to be used for a specific purpose” is the definition of
- Situs
- Site
- Improved land
- Land improvements
Site
Improved sales in older urban areas are frequently valued by the _____________method.
- Allocation
- Extraction
- Subdivision Development
- Ratio
Extraction
In land appraisals it may be possible, or necessary, to analyze data on _______________of vacant land parcels.
- Current listings
- Offers
- Options
- All of these
All of these
In law, the solid surface on the earth, as distinguished from water, is a definition of _____________.
- Land
- Site
- Situs
- Land rights
Land
In law, the solid surface on the earth, as distinguished from water, is a definition of _____________.
- Site
- Site improvements
- Land
- Land rights
Land
In rural areas, size is generally measured in terms of _________.
- Square feet
- Front feet
- Acres
- Cubic feet
Acres
In rural areas, size is generally measured in terms of __________.
- Square feet
- Front foot
- Cubic foot
- Acres
Acres
In the MVS system, buildings that do not fit into any other classification are entered into:
- Class A
- Class C
- Class S
- Class D
Class D
In the SCOPE OF WORK RULE in USPAP it says “For each appraisal and appraisal review assignment, an appraiser must _________ the problem to be solved, determine and perform the scope of work necessary to develop __________ assignment results, and __________ the scope of work in the report.”
- Identify, meaningful, disclose
- Report, credible, identify
- Identify, credible, disclose
- Disclose, pertinent, report
Identify, credible, disclose
In the SCOPE OF WORK RULE, it says an appraiser must properly identify the ____________ in order to determine the appropriate scope of work.
- Client
- Mortgage potential
- Client’s tax bracket
- Problem to be solved
Problem to be solved
In urban locations, lot size is generally measured in:
- Square feet
- Cubic feet
- Front feet
- Acres
Square feet
Interest rates will affect the ____________ purchasing power of potential buyers of all kinds of real estate.
- Alternative
- Comparative
- Effective
- Competitive
Effective
Interest rates will affect the _____________ purchasing power of potential buyers of all kinds of real estate.
- Maximum
- Durable
- Effective
- Pro-rated
Effective
IRS only allows us to charge-off depreciation on our tax return against which portion of the overall value?
- Land
- Building improvements
- Site improvements
- Homestead
Building improvements
It is commonly held that the Cost Approach has diminishing applicability as a property:
- Becomes more complex
- Ages
- Becomes larger in size
- Becomes more single purpose
Ages
It is commonly held that the Cost Approach has diminishing applicability as a property becomes __________.
- More complex
- Older
- Larger in size
- More single purpose
Older
It is commonly held that the Cost Approach has _____________ applicability as a property ages.
- Increasing
- Diminishing
- Proportional
- No
Diminishing
Items of wear and tear on a property that should be fixed now to protect the value or income-producing ability of the property, is the definition of ___________________________.
- Deterioration
- Short-lived item
- Deferred maintenance
- Short-lived maintenance
Deferred maintenance
Labor and materials are part of ___________ costs.
- Hard
- Soft
- Indirect
- Depreciated
Hard
Land adjustments are made on a _________________.
- Quantitative basis
- Qualitative basis
- Quantitative basis or a Qualitative basis
- Contributory basis
Quantitative basis or a Qualitative basis
Land and site are generally analyzed and valued by appraisers ____________________.
- In separate reports
- In a similar fashion
- In separate approaches
- On separate pages
In a similar fashion
Land and site are generally analyzed and valued by appraisers ____________________
- In separate approaches
- On separate pages
- In separate reports
- In a similar fashion.
In a similar fashion.
Land consists of the surface of the earth and everything
- Above it only
- Below it only
- Above it and below it
- Deeded to it
Above it and below it
Land in its natural state is defined as
- Site
- Land
- Raw Land
- Bare land
Raw Land
“Land that is not currently needed to support the existing use but cannot be separated from the property and sold off for another use” is the definition of ___________
- Excess land
- Surplus land
- Interim land
- Non-essential land
Surplus land
Madison Square Garden is an example of the use of __________ rights.
- Air
- Subsurface
- Water
- Subterranean
Air
Many states are __________________ states, which means that they do not keep records of sale prices.
- Confidentiality
- Restricted Data
- Non-disclosure
- Torrens System
Non-disclosure
Marketing fees are part of _________________ costs.
- Direct
- Indirect
- Hard
- Entrepreneurial
Indirect
Marshall & Swift’s cost estimates do not include:
- Architect’s fees
- Entrepreneurial incentive
- Engineer’s fees
- Contractor’s overhead and profit
Entrepreneurial incentive
Mass appraisals are most frequently used by _______________.
- Residential appraisers
- Data collectors
- Assessors
- Insurance companies
Assessors
Most buildings have _________________ lives that are shorter than their physical lives.
- Economic
- Actual
- Useful
- Chronological
Economic
Most Class A buildings are _________ .
- Low Rise
- Mid Rise
- High Rise
- Mixed use
High Rise
Most MLS services are geared toward ______________.
- Commercial use
- Multifamily residences
- Urban properties
- Residential housing
Residential housing
Most U.S. communities and many global markets choose to abide by the Codes provided by the _______________.
- International Code Council
- U.S. Code Council
- EPA
- U.S. Army Corps of engineers
International Code Council
Most U.S. communities and many global markets choose to abide by the Codes provided by the _____________________.
- U.S. Code Council
- International Code Council
- NOAA
- U.S.Army Corps of engineers
International Code Council
Neighborhood A had 28 land sales in 11 months and Neighborhood B had 52 land sales in 24 months. Which has the fastest absorption rate?
- Neighborhood A
- Neighborhood B
-
-
Neighborhood A
Neighborhood A had 28 land sales in 11 months and Neighborhood B had 52 land sales in 24 months. Which has the fastest absorption rate?
- Neighborhood B
- Neighborhood A
-
-
Neighborhood A
One mile = ___ Furlongs
1 Mile = 8 Furlongs
One site has municipal water and sells for $40,000. A similar site has none and sells for $30,000. This is a called a _______________ analysis.
- Binary
- Paired Data
- Statistical
- Quality
Paired Data
Part of the definition of Replacement Cost includes: The estimated cost to construct, at current prices as a specific date, ……………………… using __________ materials and ______________ standards, design, and layout.”
- Contemporary, current
- Current, up to date
- Similar, similar
- Modern, current
Modern, current
Physical deterioration does NOT include:
- Deferred maintenance
- Incurable short-lived components
- Curable short-lived components
- Incurable long-lived components
Curable short-lived components
Place these four stages in the life cycle of a neighborhood in the proper sequence. Revitalization Decline Growth Stability
- Stability, decline, revitalization, growth
- Decline, stable, revitalization, growth
- Growth, stability, decline, revitalization
- Growth, stability, revitalization, decline
Growth, stability, decline, revitalization
Plottage is:
- Automatic
- A value
- A cost
- Proportionate
A value
The term plottage in real estate refers to the increase in value obtained when assembling several smaller parcels of land into one larger one. The increase in value occurs because the property has more utility and can accommodate a larger scale project.
Put these terms in order from earliest to latest. Suburban sprawl Village concept Urban growth
- Village concept, urban growth, suburban sprawl
- Urban growth, suburban sprawl, village concept
- Urban growth, village concept, suburban sprawl
- Suburban sprawl, village concept, urban growth
Urban growth, suburban sprawl, village concept
Quality of construction is often more difficult to determine in buildings where the importance of appearance and amenities is equal to or greater than the importance of pure _____________.
- Earning power
- Utility
- Compatibility
- Workmanship
Utility
Quarter section contains ___ acres
Quarter section contains 160 acres
Ranking analysis is a form of ________________ analysis.
- Quantitative
- Qualitative
- Relative comparison
- Judgmental
Qualitative
“Real property for which the expansion, redevelopment, or reuse of the real estate may be complicated by the presence of environmental contamination that needs to be remediated to appropriate regulatory standards” is the definition of:
- Brownfield
- Grayfield
- Superfund site
- Wetland
Brownfield
Site is ___________, but land is ___________.
- Raw, improved
- Eternal, temporary
- Economic, physical
- Improved, raw
Improved, raw
Site is ___________, but land is ___________.
- Raw, improved
- Improved, raw
- Eternal, temporary
- Economic, physical
Improved, raw
Soil maps can be obtained from the:
- Fish and Wildlife Service
- Environmental Protection Agency
- Natural Resources Conservation Service
- U.S. Army Corps of Engineers
Natural Resources Conservation Service
Special-purpose properties are sometimes called _____________________ properties.
- Oddball
- Institutional
- No-market
- One-of-a-kind
No-market
Standards Rule 1-1(a) of USPAP says: “In developing a real property appraisal, an appraiser must: be aware of, understand, and correctly employ those recognized methods and techniques that are necessary to produce:
- A market value opinion.
- A supportable and defensible estimate of value.
- Credible results.
- A credible appraisal.
A credible appraisal.
Supply and price work in a(n) ____________ relationship.
- Parallel
- Proportionate
- Inverse
- Converse
Inverse
The 2005 revisions of the Fannie Mae/Freddie Mac single-unit appraisal forms require that the _____________ Approach(es) be completed.
- Cost
- Income Approach
- Sales Comparison and Cost
- Sales Comparison
Sales Comparison
The 2005 revisions of the Fannie Mae/Freddie Mac single-unit forms stress that certain approaches are not required by them. What approach(es) is (are) not required?
- Cost Approach only
- Income Approach only
- Cost Approach and Income Approach
- Sales Comparison Approach only
Cost Approach and Income Approach
The absence or presence of a building component will lead to functional obsolescence in the form of a deficiency or a superadequacy. This is an example of the principle of:
- Substitution
- Conformity
- Component value
- Contribution
Contribution
The acronym GIS stands for:
- Geodetic Information Systems
- Geometric Institute Systems
- Geographic Information Systems
- Geographic Institute Systems
Geographic Information Systems
The acronym GIS stands for:
- Geodetic Information Systems
- Geometric Institute Systems
- Geographic Institute Systems
- Geographic Information Systems
Geographic Information Systems
The adjustments that we make in the Sales Comparison method for land appraisals, should be derived from ____________.
- The market
- Other appraisers
- Cost Manuals
- The Intended Use
The market
“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
- Economic
- Effective
Effective
The AI Reports are available for use by:
- Appraisal Institute members only
- Appraisal Institute members and Associate members only
- Any appraiser
- Any certified appraiser
Any appraiser
“The amount an entrepreneur expects to receive for his or her contribution to a project” is the definition of entrepreneurial _____________.
- Profit
- Incentive
- Risk
- Expectation
Incentive
The amount an entrepreneur expects to receive is called entrepreneurial _________.
- Profit
- Incentive
- Risk
- Compensation
Incentive
The analysis method that uses plusses and minuses is the ____________ analysis method.
- Quantitative
- Ranking
- Ordinal
- Relative comparison
Relative comparison
The basic formula for the Cost Approach is __________.
- Replacement Cost - Annual Depreciation + Site Value
- Site Value + Depreciation - Cost New
- Depreciation + Site Value + Cost
- Cost New - Accrued Depreciation + Site Value
Cost New - Accrued Depreciation + Site Value
The basic principle underlying the Cost Approach is the principle of:
- Highest and best use
- Conformity
- Contribution
- Substitution
Substitution
The best exposure to take advantage of solar energy is a(n) _______________ exposure.
- Southern
- Northern
- Eastern
- Western
Southern
The classic theory of urban growth describes suburbs growing up in _____________ around urban centers.
- Eccentric circles
- Squares
- Concentric circles
- Irregular patterns
Concentric circles
“The combining of two or more parcels, usually but not necessarily contiguous, into one ownership or use” is the definition of:
- Assemblage cost
- Plottage
- Joint tenancy
- Assemblage
Assemblage
“The concept that land cannot be valued on the basis of one use while the improvements are valued on the basis of another” is the theory of
- Interim
- Consistent
- Highest and best
- Selective
Consistent
“The concept that the value of a particular component is measured in terms of the amount it adds to the value of the whole property or as the amount that its absence would detract from the value of the whole” is the definition of the principle of:
- Substitution
- Contribution
- Component value
- Conformity
Contribution
The Cost Approach is best used when appraising a ___________ estate.
- Life
- Leasehold
- Partial interest
- Fee simple
Fee simple
The cost method that estimates the cost to produce an exact replica of the building being appraised is ________________________ cost.
- Reproduction
- Replacement
- Both reproduction and replacement
- Substitution
Reproduction
The cost per __________ would be a pertinent unit of measure for a warehouse.
- Square foot
- Square rod
- Cubic foot
- Lineal foot
Cubic foot
The credibility of assignment results is always measured in the context of the ____________.
- Intended use
- Intended users
- Scope of work
- Client’s wishes
Intended use
The definition of external obsolescence includes these phrases: “An element of depreciation; a diminution in value caused by negative externalities; generally_____.”
- Proportionate
- Market-wide
- Long-lived
- Incurable
Incurable
The definition of external obsolescence includes this phrase: “A type of depreciation; a diminution in value caused by negative external influences, and generally________________ “.
- Proportionate
- Market-wide
- Incurable
- Long-lived
Incurable
The definition of replacement costs includes the cost to replace a structure using ________ materials and ________ standards, design, and layout.
- Modern, equivalent
- Acceptable, current
- Modern, current
- Equivalent, up to date
Modern, current
The definition of replacement costs includes the phrase “the cost to replace a structure using __________ materials and ___________ standards, design, and layout.”
- Modern, equivalent
- Acceptable, current
- Modern, current
- Equivalent, up to date
Modern, current
The definition of replacement costs includes the phrase, “the cost to replace a structure using __________ materials and ___________ standards, design, and layout.”
- Modern, equivalent
- Acceptable, current
- Modern, current
- Equivalent, up to date
Modern, current
The definition of Reproduction Cost includes: The estimated cost to construct ……………………. using the same materials, construction standards, design, layout, and quality of workmanship and embodying all the ___________________ of the subject building.
- Superadequacies
- Deficiencies
- Obsolescence
- Deficiencies, superadequacies, and obsolescence
Deficiencies, superadequacies, and obsolescence
The deterioration of short-lived building components is measured by an age-life ratio of ______________ age to ______________ life.
- Effective, useful
- Actual, useful
- Effective, economic
- Actual, economic
Actual, useful
The difference between the cost of an improvement on the effective date of the appraisal and the market value of the improvement on the same date is called:
- Obsolescence
- Deterioration
- Remaining economic life
- Depreciation
Depreciation
The difference between the cost of an improvement on the effective date of the appraisal and the market value of the improvement on the same date is known as:
- Physical depreciation
- Depreciation
- Entrepreneurial profit
- Entrepreneurial risk
Depreciation
The difference between the cost of an improvement on the effective date of the appraisal and the market value of the improvement on the same date is known as:
- Physical depreciation
- Entrepreneurial risk
- Entrepreneurial profit
- Depreciation
Depreciation
The difference between the market value of a property after completion and its total cost of development is ______________.
- Entrepreneurial Profit
- Entrepreneurial Incentive
- Markup
- Margin
Entrepreneurial Profit
The distances along a boundary line are called _________.
- Metes
- Bounds
- Links
- Sections
Bounds
The distances along a boundary line are called _________.
- Metes
- Chains
- Links
- Bounds
Bounds
The easiest type of site to develop is one that has a _______ terrain.
- Flat
- Rolling
- Steep
- Terraced
Rolling
The Enviromapper website is maintained by the:
- Environmental Protection Agency
- National Marine Fisheries Service
- National Oceanic and Atmospheric Administration
- U. S. Fish and Wildlife Service
Environmental Protection Agency
“The estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvements, using modern materials and current standards, design, and layout” is the definition of _____________ cost.
- Reproduction
- Replacement
- Duplicate
- Depreciated
Replacement
The first comprehensive zoning plan was adopted in 1916 in _______________.
- Philadelphia
- Boston
- New York City
- Chicago
New York City
The first step in highest and best use analysis is to determine a site’s:
- Physical uniqueness
- Maximum productivity
- Financial feasibility
- Legal permissibility
Legal permissibility
The four economic factors that are necessary to create value are utility, _____________, ___________, and _______________.
- Scarcity, demand, purchasing power
- Desire, effective demand, purchasing power
- Effective purchasing power, exclusivity, demand
- Scarcity, desire, effective purchasing power
Scarcity, desire, effective purchasing power
The four main categories of market forces are:
- Supply, demand, scarcity, utility
- Environmental, governmental, economic, societal
- Physical, legal, economic, social
- Physical, legal, governmental, social
Physical, legal, economic, social
The fourth stage in the life cycle of a neighborhood, if it occurs, is __________________.
- Revitalization
- Stability
- Decline
- Growth
Revitalization
The general relationship between legally permissible, physically possible, and financially feasible uses can be depicted in a:
- Venn diagram
- Appraisal flow chart
- Simple pie chart
- Twelve-step process
Venn diagram
The highest and best use analysis is performed in two stages. They are the highest and best use _________, and the highest and best use ___________.
- As though improved, as if vacant
- Of the land, of the buildings
- As though vacant, as improved
- In its current use, as the ideal improvement
As though vacant, as improved
The highest and best use analysis is performed in two stages. They are the highest and best use _______________ and the highest and best use _____________.
- As though unimproved,
- Of the land, of the buildings
- As though vacant, as improved
- In its current use, as the ideal improvement
As though vacant, as improved
The highest and best use of a site as though vacant may be different from the highest and best use of the property as improved. This means that the property ________________.
- Has been over-improved
- Has been mis-improved
- Has been under-improved
- Is a nonconforming use
Has been mis-improved
The highest and best use of a site as though vacant may be different from the highest and best use of the property as improved. This means that the property ________________.
- Has been mis-improved.
- Is a non-conforming use
- Has been under-improved
- Has been over-improved
Has been mis-improved.
“The impairment of functional capacity of a property according to market tastes and standards” is the definition of:
- Functional inutility
- Functional obsolescence
- Functional utility
- Incurables obsolescence
Functional obsolescence
The Income Capitalization Approach should only be applied when the typical purchaser would be a(n) _______________.
- Homeowner
- Investor
- Tenant
- Ill informed buyer
Investor
“The increment of value created when two or more sites are combined to create greater utility” is the definition of:
- Assemblage cost
- Plottage
- Joint tenancy
- Assemblage
Plottage
The Land Trust Alliance offers advice on:
- Deed restrictions
- Conditions, Covenants and Restrictions
- Conservation easements
- Transferable Development Rights
Conservation easements
The main distinguishing characteristic for Class A buildings is the:
- Galvanized steel frame
- Fireproofed steel frame
- Masonry framed.
- Reinforced concrete frame
Fireproofed steel frame
The main distinguishing characteristic for Class B buildings is the:
- Galvanized steel frame
- Fireproofed steel frame
- Masonry frame
- Reinforced concrete frame
Reinforced concrete frame
The main methods of estimating depreciation include all of these EXCEPT ________________________.
- Age-Life Method
- Market Extraction Method
- Quantity Survey Method
- Breakdown Method
Quantity Survey Method
The majority of buildings will fall into the MVS Quality Classification of:
- Low cost
- Average
- Good
- Excellent
Average
The most common type of adjustments used in land or site appraisals is __________________ adjustments.
- Percentage
- Qualitative
- Quantitative
- Comparative
Quantitative
The most common unit of construction costs for a warehouse is the cost per _______.
- Lineal foot
- Cubic foot
- Square foot
- Vertical foot
Cubic foot
The most common unit of construction costs is the cost per ____________.
- Lineal foot
- Cubic foot
- Square foot
- Buildable unit
Square foot
The most commonly used land appraisal form is a(n) _______________ form.
- Fannie Mae
- Freddie Mac
- Appraisal Institute
- Generic
Generic
The most commonly used method for valuing sites is the ________________ method.
- Extraction
- Allocation
- Land Residual
- Sales Comparison
Sales Comparison
The most commonly utilized source of cost data is _________________ .
- Professional cost estimators
- Regional cost estimating services
- National Association of REALTORS®.
- National cost estimating services
National cost estimating services
The most complex and complicated method of land valuation is the _______________ Method.
- Subdivision Development
- Land Residual
- Ground Rent Capitalization
- Allocation
Subdivision Development
The most complicated method of cost estimating is the ________________ method.
- Comparative Unit
- Unit-in-Place
- Quantity Survey
- Quality Survey
Quantity Survey
The most detailed and accurate method of addressing depreciation is the _________ method.
- Segregated
- Breakdown
- Age-Life
- Unit-in-Place
Breakdown
The most detailed and accurate method of depreciation is the ______________ method.
- Unit-in-place
- Market Extraction
- Age-life
- Breakdown
Breakdown
The National Wetlands Inventory is maintained by the:
- Environmental Protection Agency
- National Marine Fisheries Service
- National Oceanic and Atmospheric Administration
- U. S. Fish and Wildlife Service
U. S. Fish and Wildlife Service
The number of other truly competitive properties competing with the subject property defines the ________________ competition.
- Effectual
- Substantive
- Effective
- Primary
Effective
The oldest of the traditional approaches to value is the ______________ approach.
- Cost
- Sales Comparison
- Market
- Income Capitalization
Cost
The overall plans that were created when the original zoning ordinances were implemented are called______________ .
- Master Plans
- Regional Plans
- Neighborhood Plans
- Transitional Plans
Master Plans
“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” is the definition of __________ life.
- Useful
- Physical
- Economic
- Effective
Useful
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 is the definition of ______________.
- Physical life
- Useful life
- Economic life
- Chronological life
Useful life
“The period over which improvements to real estate contribute to property value” is the definition of ___________ life.
- Economic
- Useful
- Physical
- Remaining economic
Economic
The price per front foot is usually used when appraising _____________ land and ________________ land.
- Waterfront, industrial
- Commercial, industrial
- Residential, agricultural
- Waterfront, commercial
Waterfront, commercial
The price per _________ is usually used when appraising farm or agricultural land.
- Acre
- Front foot
- Square foot
- Buildible Unit
Acre
The principle of Substitution really underlies _____________to value.
- The Sales Comparison Approach
- The Cost Approach
- The Income Approach
- All three approaches
All three approaches
“The principle that real property value is created and sustained when contrasting, opposing, or interacting elements are in a state of equilibrium” is the definition of the principle of:
- Balance
- Conformity
- Equilibrium
- Highest and best use
Balance
“The rate at which properties for sale or lease have been or are expected to be successfully marketed, sold, or leased in a given area over a duration of time” is the definition of _______________ rate.
- Marketing
- Absorption
- Effective
- Conceptual
Absorption
The Rectangular Survey system is found primarily in the
- Midwest and West
- South
- Northeast
- Mid-Atlantic
Midwest and West
The Rectangular Survey system is found primarily in the:
- Midwest and West
- South
- Northeast
- Mid-Atlantic
Midwest and West
The right to construct a tunnel is an example of the use of __________ rights
- Air
- Subsurface
- Water
- Subterranean
Subsurface
“The right to use another’s land for a stated purpose” is the definition of:
- Negative easement
- Easement
- Right-of-way
- Easement in gross
Easement
The simplest method of cost estimating is the ________________ method.
- Comparative Unit
- Unit-in-Place
- Quantity Survey
- Quality Survey
Comparative Unit
The site valuation method that capitalizes income from leased land is the ___________________ Method.
- Land Residual
- Allocation
- Ground Rent Capitalization
- Subdivision Development
Ground Rent Capitalization
The site valuation method that capitalizes the income attributable to the land is the ______________ Method.
- Land Residual
- Ground Rent Capitalization
- Extraction
- Building Residual
Land Residual
The site valuation method that subtracts development costs from sale proceeds is the ______________ Method.
- Allocation
- Extraction
- Subdivision Development
- Land Residual
Subdivision Development
The site valuation method that subtracts estimated contributory value of improvements is the _______________ Method.
- Extraction
- Allocation
- Residual
- Subdivision Development
Extraction
The site valuation method that uses land-to-value ratios is the __________________Method.
- Ground Rent Capitalization
- Building Residual
- Extraction
- Allocation
Allocation
The site valuation method that uses recent sales is the ______________ Method.
- Allocation
- Extraction
- Land Residual
- Sales Comparison
Sales Comparison
The Subdivision Development method is a variation of a ________________________ analysis.
- Cash flow
- Market development
- Cash residual
- Discounted Cash Flow
Discounted Cash Flow
“The temporary use to which a site or improved property is put until a different use becomes maximally productive.” is the definition of:
- Interim use
- Internal use
- Highest and best use
- Consistent use
Interim use
The three traditional methods of estimating costs include all of these EXCEPT ___________________.
- Comparative-Unit Method
- Quality Survey Method
- Quantity Survey Method
- Unit-in-Place Method
Quality Survey Method
“The total period a building lasts or is expected to last ..” is the definition of ___________ life.
- Useful
- Physical
- Economic
- Effective
Physical
The type of data and the extent of research and analyses in an appraisal or appraisal review assignment is the definition of _______________.
- Market analysis
- Scope of work
- Marketability analysis
- Statistical analysis
Scope of work
The type of data and the extent of research and analyses, is the definition of _______________.
- Scope of Work
- The appraisal process
- Marketability analysis
- Market analysis
Scope of Work
The type(s) of cost that embodies(y) all the deficiencies, superadequacies, and obsolescence of the subject building is (are) ___________________ cost (s).
- Reproduction
- Replacement
- Both reproduction and replacement
- Entrepreneurial
Reproduction
The type(s) of cost that embodies(y) all the deficiencies, superadequacies, and obsolescence of the subject building is (are)___________________ cost(s).
- Reproduction
- Replacement
- Both reproduction and replacement
- Entrepreneurial
Reproduction
The U.S. Geodetic Survey publishes ______________ maps.
- GIS
- Aerial
- Flood
- Topographic
Topographic
The U.S. Geodetic Survey publishes ______________ maps.
- Topographic
- Flood
- Aerial
- GIS
Topographic
“The wear and tear that begins when a building is completed and placed into service” is the definition of:
- Depreciation
- Physical depreciation
- Physical deterioration
- Functional obsolescence
Physical deterioration
“The wear and tear that begins when a building is completed and placed into service” is the definition of:
- Functional obsolescence
- Physical deterioration
- Physical depreciation
- Depreciation
Physical deterioration
The ____________ method is especially helpful when valuing one-unit residential lots in new subdivisions where there is a lack of suitable vacant land sales for comparison.
- Subdivision Development
- Ground Rent Capitalization
- Extraction
- Allocation
Allocation
There are ____________ kinds of functional obsolescence. Functional Obsolescence,
- Two
- Three
- Four
- Five
Four
Township is ____ x ___ miles
Townships is 6 miles x 6 miles
Trees can produce benefits in all of these ways EXCEPT for
- Absorb oxygen
- Shade
- Absorb moisture in the air
- Combat heat island effect
Absorb oxygen
Under the Rectangular Survey system, land is divided into ________.
- Metes and Bounds
- Lots and Blocks
- Townships
- None of the above
Townships
Until there are _____________, the issue of excess or surplus land does not exist.
- Proposed improvements
- Existing improvements
- Options to buy
- Encroachments
Existing improvements
USPAP requires that an appraisal include a ___ year sales history of the subject property.
- One
- Two
- Three
- Five
Three
Value is created and sustained by:
- Internal market forces
- Inherent qualities of an economic good
- External market forces
- Appraisers
External market forces
Wall and ceiling panels made of sandwich construction with foam and oriented strand board are called:
- SIPs
- SPSs
- ICFs
- SSPs
SIPs
Structural insulated panels
Warm air rising is called the _____________.
- Stack effect
- Updraft
- Spiral Effect
- Vortex
Stack effect
Warm air rising is called the _____________.
- Vortex
- Stack Effect
- Uplift
- Spiral Effect
Stack Effect
We cannot do a Cost Approach without valuing the two components of land and improvements _____________.
- Together
- Concurrently
- As is
- Separately
Separately
What is the first stage in the life cycle of a neighborhood?
- Stability
- Decline
- Growth
- Revitalization
Growth
What is the most dominant factor that affects legal permissibility?
- Deed restrictions
- Zoning ordinances
- Covenants, conditions, and restrictions (CC&Rs)
- Federal environmental restrictions
Zoning ordinances
What is the problem in determining what is legal?
- Deed restrictions are sometimes difficult to discover
- Property owners are not always forthcoming about their plans for development
- It is subject to manipulation by local officials
- All of the above
It is subject to manipulation by local officials
What type of land is not needed to serve the existing improvement, and is capable of a separate highest and best use?
- Excess
- Surplus
- Interim
- Non-essential
Excess
When a cost manual is used, it results in _________________ cost.
- Reproduction
- Replacement
- Both reproduction and replacement
- Entrepreneurial
Replacement
When a cost manual is used, the resulting cost is ____________ cost.
- Reproduction
- Replacement
- Institutional
- Depreciated
Replacement
When gathering land sales data, it is important to __________ any sales concessions that may have been involved.
- Quantify
- Discount
- Identify
- Verify
Verify
When making comparisons for changes in market conditions people normally think in terms of __________.
- Ratios
- Lump sum adjustments
- Discounting
- Percentages
Percentages
Which agency is in charge of navigable waterways?
- NOAA
- U.S. Army Corps of Engineers
- Coast Guard
- Seabees
U.S. Army Corps of Engineers
Which agency is in charge of navigable waterways?
- The Coast Guard
- U.S. Fish and Wildlife Service
- The U.S. Army Corps of Engineers
- The Seabees
The U.S. Army Corps of Engineers
Which defined building life is the one most frequently used by appraisers?
- Physical life
- Economic life.
- Actual life
- Chronological life
Economic life.
Which defined building life is the one most frequently used by appraisers?
- Physical life
- Historical life
- Economic life.
- Chronological
Economic life.
Which is a situation in which the Cost Approach would have good applicability?
- The property is 40 years old and in original condition
- The land value is not well supported
- A lack of market activity precludes the use of the Sales Comparison Approach
- The improvements do not represent the highest and best use of the land as though vacant
A lack of market activity precludes the use of the Sales Comparison Approach
Which is an example of a long-lived building component?
- Furnace
- Carpeting
- Roof truss
- Roof shingle
Roof truss
Which is not a common unit of comparison when appraising land?
- Price per square foot
- Price per cubic foot
- Price per buildable unit
- Price per animal unit
Price per cubic foot
Which is not a legal force?
- Zoning
- Water pollution
- Private restrictions
- Water rights
Water pollution
Which is not a physical force?
- Traffic
- Topography
- Views
- Building codes
Building codes
Which is not a private restriction?
- Building code
- Easement
- CC&R
- Lease
Building code
Which is NOT a situation in which the Cost Approach would have good applicability?
- The property is not typically income-producing
- The building improvements are new or relatively new
- Land value is not well supported
- The improvements represent the highest and best use of the land as though vacant
Land value is not well supported
Which is NOT a true statement about the definition of land?
- It includes land and water
- It includes anything attached to it whether by the course of nature or human hands
- It includes all natural resources in their original state
- It is one of the four agents of production in economic theory
It includes land and water
Which is not a type of land rights?
- Deed rights
- Water rights
- Mineral rights
- Non-development rights
Deed rights
Which is not an advantage of community living?
- Common cooking facilities
- Common recreation areas
- Shared maintenance
- Increased security
Common cooking facilities
Which is not an example of community living?
- Condominiums
- Apartments
- Retirement villages
- PUDs
Apartments
Which is not an on-site improvement?
- Grading
- Landscaping
- Curbs
- Utility hookups
**Curbs **
Curbs are an off-site improvement.
Which is not an on-site improvement?
- Grading
- Landscaping
- Curbs
- Utility hookups
Curbs
Which is not considered to be a municipal utility?
- Propane
- Electricity
- Telephone
- Natural gas
Propane (propane is usually privately provided in tanks)
Which is not considered to be a municipal utility?
- Propane
- Electricity
- Telephone
- Natural gas
Propane
Which is not one of the basic ingredients of building costs?
- Direct costs
- Indirect costs
- Entrepreneurial incentive
- Entrepreneurial profit
Entrepreneurial profit
Which is NOT one of the common adjustments we might make in a land appraisal?
- Traffic
- Shape
- Absorption rate
- Utilities
Absorption rate
Which is not one of the common causes of functional obsolescence?
- Layout problems
- Short-lived items
- Inadequacies
- Superadequacies
Short-lived items
Which is NOT one of the common causes of functional obsolescence?
- Layout problems
- Deferred maintenance
- Outmoded items
- Superadequacies
Deferred maintenance
Which is not one of the four criteria for highest and best use?
- Physical possibility
- Maximum productivity
- Financial feasibility
- Social acceptability
Social acceptability
Which is NOT one of the three general types of legal descriptions employed in the country today?
- Chain and Link
- Metes and Bounds
- Rectangular Survey
- Lot and Block
Chain and Link
Which is NOT one of the three general types of legal descriptions employed in the country today?
- Metes and Bounds
- Government Survey
- Links and Chains
- Lot and Block
Links and Chains
Which is the longest measurement?
- Perch
- Rod
- Furlong
- Pole
Furlong
Which is the most prevalent type of legal description used in the U.S. today?
- Metes and bounds
- Lot and block
- Rectangular survey
- Section, lot and block
Rectangular survey
Which is the simplest method of estimating depreciation?
- Market extraction
- Breakdown method
- Age-life
- Modified age-life
Age-life
Which is true of external obsolescence?
- It is always attributable to the land.
- It is always attributable to the improvements.
- It may be allocated to either or both the land and the improvements.
- It is always market-wide.
It may be allocated to either or both the land and the improvements.
Which is usually the longest stage in the life cycle of a neighborhood?
- Stability
- Decline
- Growth
- Revitalization
Stability
Which legal system grew up primarily with the advent of suburban subdivisions?
- Lot and Block
- Metes and Bounds
- Government Survey
- Rectangular Survey
Lot and Block
Which method of legal description was the earliest?
- Government Survey
- Lot and Block
- Rectangular Survey
- Metes and Bounds
Metes and Bounds
Which method of legal description was the earliest?
- Government Survey
- Lot and Bock
- Rectangular Survey
- Metes and Bounds
Metes and Bounds
Which of the following is not one of the elements of highest and best use?
- Socially acceptable
- Physically possible
- Legally permitted
- Economically feasible
Socially acceptable
Which of the following IS one of the common causes of functional obsolescence?
- Superadequacies
- Deferred maintenance
- Land
- Building
Superadequacies
Which of these are a type of land rights?
- Air rights
- Water rights
- Transferable Development Rights
- All of the above
All of the above
Which of these is NOT a characteristic of radon?
- Colorless
- Strong sulphur smell
- Radioactive gas.
- It comes from the decay of uranium and radium
Strong sulphur smell
Which of these is NOT a legal force affecting property value?
- Master plans
- Access
- Private restrictions
- Air rights
Access
Which of these is NOT a situation in which the Cost Approach would have good applicability?
- Estimating the use value of special-purpose properties
- Land value is a significant portion of the overall value
- The property is typically income-producing
- The appraisal requires that land and improvements be valued separately
The property is typically income-producing
Which of these is NOT an example of a private restriction?
- Easement
- Deed restriction
- Zoning ordinance
- Lease
Zoning ordinance
Which of these statements about land is NOT true?
- Land is tangible
- Land is a short term asset
- Land is a physical entity
- Land is unique
Land is a short term asset
Which of these statements about land is NOT true?
- Land is tangible.
- Land is a physical entity.
- Land is unique.
- Land is a short term asset.
Land is a short term asset.
Which of these statements about value is NOT true?
- Value is not inherent in an economic commodity, good, or service.
- Value is created and sustained by external market forces
- Value exists in the minds of market participants.
- Value is created by appraisers.
Value is created by appraisers.
Which of these statements about value is NOT true?
- Value is not inherent in an economic commodity, good, or service.
- Value is created and sustained by external market forces
- Value is created by appraisers.
- Value exists in the minds of market participants.
Value is created by appraisers.
Which of these would be an example of a short-lived building component?
- Floor truss
- Roof truss
- Dishwasher
- Footings
Dishwasher
Which of these would NOT be an economic factor in land or site valuation?
- Interest rates
- Absorption analysis
- Buildings costs
- Population trends
Population trends
Which of these would NOT be an example of a short-lived building component?
- Roof rafter
- Air conditioning compressor
- Carpeting
- Water heater
Roof rafter
Which of these would NOT be an example of a social force?
- Absorption analysis
- Suburban sprawl
- Village concept
- Reputation of an area
Absorption analysis
Which of these would NOT be an example of deferred maintenance?
- Missing roof shingles
- Driveway needing replacement in about 5 years
- Peeling paint
- Inoperable dishwasher
Driveway needing replacement in about 5 years
Which System uses chains and links?
- Government Survey
- Lot and Block
- Leaps and Bounds
- Metes and Bounds
Metes and Bounds
Which two terms are very similar?
- Lot and plot
- Lot and parcel
- Parcel and tract
- Site and land
Lot and parcel
Which type(s) of depreciation occur(s) within a property’s boundaries?
- Physical only
- Functional only
- Physical and functional
- Physical and external
Physical and functional
Which would NOT be a common source for cost data?
- Construction contracts
- Appraiser’s files
- MLS
- Cost estimating services
MLS
Which would not be a factor that could cause abnormal amounts or types of physical deterioration?
- Defective materials
- Improper installation
- Changing tastes and standards
- Unexpected occurrences in the physical atmosphere
Changing tastes and standards
Which would not be a social force?
- Interest rates
- Urban growth
- Village concept
- Population trends
Interest rates
Which would NOT be a source of support for an allocation ratio?
- Mass appraisals
- An appraiser’s files
- Consultations with developers
- MLS
MLS
Which would not be an economic factor in land or site valuation?
- Supply and demand
- Effective competition
- Plottage
- Road frontage
Road frontage
Which would not be an economic factor in land or site valuation?
- Supply and demand
- Effective competition
- Plottage
- Suburban sprawl
Suburban sprawl
Which would NOT be an example of a short-lived building component?
- Floor joist
- Roof shingle
- Furnace
- Water heater
Floor joist
Which would NOT be an example of deferred maintenance?
- Broken windowpane
- Older water heater
- Peeling paint
- Ripped carpeting
Older water heater
Which would not be an instance in which a commercial appraiser might be asked to form an opinion of land or site value?
- Estimating market rent for an office building
- Appraising an agricultural property
- Performing an appraisal for insurance purposes
- Determining highest and best use
Estimating market rent for an office building
Who administers the Endangered Species Program?
- National Marine Fisheries Service
- U.S Army Corps of Engineers
- U. S. Fish and Wildlife Service.
- NOAA
U. S. Fish and Wildlife Service.
Who is charged with monitoring estuaries?
- Environmental Protection Agency
- National Marine Fisheries Service
- U. S. Fish and Wildlife Service
- National Oceanic and Atmospheric Administration
National Oceanic and Atmospheric Administration
Estuaries and their surrounding wetlands are bodies of water usually found where rivers meet the sea. Estuaries are home to unique plant and animal communities that have adapted to brackish water—a mixture of fresh water draining from the land and salty seawater.
With Age-life depreciation, the lump sum amount is what is calculated, with no indications of which proportions may be physical depreciation and which may be functional or external obsolescence.
- TRUE
- FALSE
-
-
TRUE
With real estate, _______________ can change quickly, while _______________ is slow to respond.
- Supply, demand
- Demand, supply
- Desire, demand
- Demand, equilibrium
Demand, supply
With the ________________ and ____________ methods, the total depreciation is calculated as a lump sum amount with the individual components not being addressed separately.
- Market Extraction, Allocation
- Age-life, Market Extraction
- Breakdown, Segregated Costs
- Paired Sales, Age-life
Age-life, Market Extraction
You should identify the highest and best use of potential comparable land sales and use ones with ______________ highest and best uses.
- Complementary
- Heterogeneous
- Similar
- Compatible
Similar
__________ costs are also called hard costs.
- Depreciated
- Entrepreneurial
- Indirect
- Direct
Direct
_______________ are often referred to as part of the “bone structure” of the building.
- Short-lived items
- Long-lived items
- Hard costs
- Infrastructure items
Long-lived items
_______________ costs are also called soft costs.
- Direct
- Assumed
- Replacement
- Indirect
Indirect
________________ age is a judgment call on the part of the appraiser.
- Actual
- Historical
- Chronological
- Effective
Effective
_________________ fees are typically estimated as a percentage of hard costs.
- Appraisal
- Plumbing
- Architect’s
- Consulting
Architect’s
“Incurable physical deterioration” is defined as, “A form of physical deterioration that cannot be __________ or __________ corrected as of the date of appraisal.”
- Physically, economically
- Practically, physically
- Economically, reasonably
- Practically, economically
Practically, economically
