Valuation of Real Property

Question 1

_________ is the process of determining how much a piece of real property is worth. An appraisal is an ________ or _______ of a property’s nature, quality, value, or utility. It is an estimate of specified interests in, or aspects of, identified real estate which is supported by relevant, factual evidence.

Answer 1

Valuation
estimate or opinion

Question 2

A ______ ________ is an informal estimate of value utilizing some or perhaps all of the techniques employed by the professional appraiser.

Answer 2

market analysis

Question 3

Appraisers who attend the required courses through the Appraisal Institute may use the designation, MAI, ______ of _________ _________, after their name. Appraisers are also required to take a course in _______ _________ of ____________ _________ ________, or USPAP.

Answer 3

Master of Appraisal Institute
Uniform Standards of Professional Appraisal Practice

Question 4

_____ is a relationship between a potential purchaser and the thing he desires.

Answer 4

Value

Question 5

_____ can also be defined as the desirability or worth of a thing - property, goods, or services- to buyers and sellers.

Answer 5

Value

Question 6

_____ is the present worth of future benefits that arise from the ownership of real property.

Answer 6

Value

Question 7

_____ is the quantity of one thing which can be obtained in exchange for another

Answer 7

Value

Question 8

_____ is the amount that a ready, willing and able buyer will pay and the seller will accept.

Answer 8

Value

Question 9

_____ is the term used to describe the sum of all economic aspects of a location which invest it with economic value. A property situated in an economically desirable location, that is, a location which allows it to successfully fulfill human needs, is said to benefit from ________ _____.

Answer 9

Situs
positive situs

Question 10

___________ ______ ________ (CMA) can help the salesperson determine a listing
price for the seller, and is a comparison of the prices of properties recently sold, properties currently on the market, and properties that did not sell. Comparison properties must be similar to the seller’s property in location, size, age, style and amenities. The CMA is not a formal appraisal, but it uses the same
principle and many of the same methods as the sales comparison approach.

Answer 10

Comparative Market Analysis

Question 11

Although value can exist in many specialized forms - cash value, book value, insurance value, going-concern value, intrinsic value, assessed value, salvage value, use value, scrap value, and investment value, to name a few, the type of value most useful when dealing with the appraisal of real estate is ______ _____.

Answer 11

market value

Question 12

______ _____ is the power of an item to command other valuables in exchange for that item. It is also the most probable price in terms of money which a property should bring in a competitive and open market, assuming the price is not affected by undue stimuli. It always refers to the future value.

Answer 12

Market value

Question 13

______ _____ is the amount that is actually paid, or is about to be paid, for a property’s ownership rights at a specific point in time. Always refers to present value.

Answer 13

Market Price

Question 14

______ ____ refers to the past outlay of sufficient capital for the supervision, land, materials, labor and other valuables that are needed to bring an improvement into existence. This includes financing and the
expenses incurred in selling the piece of property. Always refers to past.

Answer 14

Market Cost

Question 15

The willing and informed buyer on the open market place will exchange valuables for an item only if that
item has four essential “____________ of _____” present and working together in useful combination. These four interact in various complex ways. Their interaction is reflected in the basic principle of “supply and demand”. They can be remembered with the acronym “DUST”.

Answer 15

determinants of value

Question 16

“Is there a sufficient number of persons in the market willing to purchase the product with adequate purchasing power?” ______ is the desire to purchase along with the ability.

Answer 16

demand

Question 17

To be “useful” means to meet a need or to render a service. To determine ______ we can ask the question, “Does the product satisfy a need?”

Answer 17

Utility

Question 18

A commodity’s market value is related also to its relative ________. To determine ________ we can ask the question, “Is the available supply limited relative to the desire or demand for the product?”

Answer 18

Scarcity

Question 19

_______________: A commodity may have utility, scarcity, and be in effective demand, but unless an item can readily be conveyed from the seller to the buyer, it will not have economic value. “Can the product be conveyed or transferred from one person to another?”

Answer 19

Transferability

Question 20

____________: This is the perception that value is created by the expectation of benefits to be derived in the future. It is the basis for the Income Approach to value.

Answer 20

Anticipation

Question 21

_______ states that property values are maximized when all of the factors of production are in _______, equilibrium, or proper proportion.

Answer 21

Balance

Question 22

The factors of production are:
HInt: CMLL

Answer 22

Capital
Management
Labor
Land

Question 23

The principle of _______ is related to the Law of Increasing and Decreasing Returns which states that successive increments of one or more of the factors of production added to fixed amounts of other factors
of production will enhance income at an increasing rate until a maximum return is reached.

Answer 23

balance

Question 24

The principle of ______ states that the world is in a constant state of flux, and that changes in physical, social, economic, and governmental forces continuously affect the value of property.

Answer 24

Change

Question 25

___________ is the active demand for real estate in short supply by two or more market participants. Prices are directly affected by the amount of demand for a property. It is not measured by the number of participants who want property, nor by the number who have the ability to purchase property, but by the number of participants who desire and have the ability to purchase similar properties to that of the subject property.

Answer 25

Competition

Question 26

__________ refers to the concept that form, manner and character of structures are in harmony with one another. It states that overall, the prices of an area will be maximized if structures are similar in style, size, quality, etc. It is the basis for subdivision restrictions.

Answer 26

Conformity

Question 27

The value of a particular component is measured in terms of its ____________ to the value of the whole property, or as the amount that its absence would detract from the value of the whole.
For example, a swimming pool may cost $20,000, but may only add $5,000 to the value of the property.

Answer 27

Contribution

Question 28

_____________ This principle states that conditions not directly related to a parcel of property can have a positive or negative effect on the value of that property.

Answer 28

Externalities

Question 29

_______ and ____ ___ is the reasonable and probable use which, at the time
of the appraisal, is most likely to produce the greatest net return in terms of money or amenities to the land or improvements over a given period of time.

Answer 29

Highest and best use

Question 30

These principles are an extension of the
principle of conformity. ___________ is the concept that the value of an inferior property is enhanced by its association with better properties of the same type. __________ is the concept that the value of a superior property is adversely affected by its association with an inferior property of the same type. However, nonconforming uses may enhance or detract from the value, depending on the property’s location near either superior or inferior properties.

Answer 30

Progression
Regression
For example, a very small house located next to a large house would experience an increase in value (Progression) whereas the large house would experience a decrease in value (regression)

Question 31

____________ states that when several similar or commensurate commodities, goods, or services are available, the one with the lowest price will attract the greatest demand and widest distribution. For example, W. E. Fargo & Co. builds garages in the $3,000 - $5,000 range. Its competitor, the Davis Garage Co. begins marketing pre-fabricated garages having a top-of-the-line price of $2,500. Because garages erected by the Davis Company have the same utility and appearance as those sold by Fargo, Fargo is forced to lower its prices to effectively compete with those of Davis. ____________ is the basis for the Sales Comparison Approach.

Answer 31

Substitution

Question 32

______ and ______ This principle states that the price of real property varies directly, but not necessarily proportionately, with demand, and inversely, but not necessarily proportionately, with supply.
This is a simple relationship between price and quantity.

Answer 32

Supply and Demand
For example, after World War II, many cities experienced acute housing shortages. Because apartments and single family residences were in limited
supply in relation to effective demand, rents and housing prices rose sharply.

Question 33

_______ ____________: This is the net income that remains after the costs of labor, capital and coordination have been paid. The net income accrues to the land and not the improvements. For example, two similar stores sell for $250,000 and $500,000. The second store sold for more because it is in a better location and sells more of its product. The additional value is attributable to the location of the land.

Answer 33

Surplus Productivity

Question 34

FACTORS AFFECTING VALUE
HInt: The Four..
Productivity
DUST
Influence Value

Answer 34

The Four Agents of Productivity
The Four Factors That Create Value
The Four Forces that Influence Value

Question 35

THE FOUR AGENTS OF PRODUCTIVITY

Answer 35

Labor
Management
Capital
Land

Question 36

THE FOUR FACTORS WHICH CREATE VALUE – (DUST)

Answer 36

Demand
Utility
Scarcity
Transferability

Question 37

THE FOUR FORCES THAT INFLUENCE VALUE
HINT: ST, EFF, GCR, EC&PF

Answer 37

1. Social Trends
2. Economic and Financial Factors
3. Government Controls and Regulations
4. Environmental Conditions and Physical Factors

Question 38

______ ______: A community’s social ideals and standards can shape patterns of collective behavior which in turn affect the value of real property.

Answer 38

Social Trends

Question 39

Desirable social features such as high quality schools, churches, well-maintained
roads, convenient public transportation systems, pleasant landscaping, and careful city planning are social __________. These features attract buyers and increase the value of real property.

Answer 39

Amenities

Question 40

___________ ______: Communities tend to grow and develop unevenly, expanding in certain directions while remaining unchanged or declining in others. Property located in a community’s path of
growth may increase in value, while property in an area of declining growth depreciates.

Answer 40

Directional growth

Question 41

__________ __________: Subdivision developers may impose protective and restrictive covenants on real property to regulate its use and stabilize its value. For example, a subdivision declaration may prohibit hanging wash out on Sunday, or require that lawns be mowed at specified
intervals, or forbid repairing automobiles in driveways. Property values may be enhanced by such regulations of social behavior

Answer 41

behavioral regulations

Question 42

___________ ______: Real estate values may be affected by long range trends of population growth and decline, by the marriage and divorce rates, and by the birth and death rates. For example, the
post World War II baby boom created not only a demand for housing, but also for expanded recreational and educational facilities.

Answer 42

demographic trends

Question 43

________ of __________ and _______: Localities having a large percentage of homeowners tend to enjoy greater economic stability than areas populated by a high proportion of renters. The homeowners’ greater financial, social, and emotional investment in their dwellings is reflected frequently in the economic stability of their neighborhoods.

Answer 43

Proportion of homeowners and renters

Question 44

________ and _________ _______: The market value of a given piece of real property is affected by the operation of large economic forces apart from the intrinsic value of the particular property itself.

Answer 44

Economic and Financial Factors

Question 45

______ of _____, ________, and _______: The value of real property rises in proportion to the purchasing power of potential buyers. If money in the form of wages, savings, and loans is readily available, the effective demand for real property will increase. For example, the availability of FHA and VA loans can exert a substantial, positive influence on the effective demand for real estate. The reverse is also true: in times of high interest rates and widespread unemployment, the level of buyers’ financial resources naturally diminishes, and as a result the effective demand for real estate may markedly
decrease.

Answer 45

Levels of wages, salaries, and savings

Question 46

________ ______ of ________: According to the principle of supply and demand, as the supply of real property increases, its price must decline if all available units are to be sold or rented. Because the supply of land itself is relatively fixed and can be increased only by employing such extreme measures as filling in lakes, the balance of the supply and demand of real property is measured most accurately by
tabulating current vacancy rates and the number of houses which have been on the market unsold for excessive periods of time. High vacancy rates and many unsold properties indicate a condition of low
effective demand, and vice versa.

Answer 46

Existing supply of property

Question 47

__________ and __________ ______: The expansion of industrial and commercial enterprises can stimulate economic growth which in turn can raise the value of real property.

Answer 47

Industrial and commercial trends

Question 48

_______ _________ _______: Fluctuations in a locality’s financial climate may considerably influence the value of real property. Money and credit are commodities, like automobiles, houses and clothing.

Answer 48

Current financial climate

Question 49

_____________ ________ ____________: Breakthroughs in technology, such as solar heating, and innovations in product design and manufacturing techniques, such as mobile homes and prefabricated housing, can alter patterns of consumer demand and the level of available housing supply, changes which can sharply affect the market value of real property. Real estate construction costs, of course, are contingent upon the costs of building materials, wage levels and the available labor supply.

Answer 49

International economic developments

Question 50

__________ ________ and ___________: Local, state, and federal agencies are empowered to tax and otherwise control real property in a variety of ways, and are obligated as well to provide certain goods
and services for the benefit of owners and renters of real property. Such legal and economic governmental activities affecting the value of real property discussed in this section are the following: Taxes, Zoning, Rent controls, Government spending and Utilities and related services

Answer 50

Government Controls and Regulations

Question 51

_____ and special assessments have varying effects on property values. In some instances, excessively high taxation discourages commercial and industrial ventures and residential buyers, thus lowering effective demand and property values.

Answer 51

Taxes

Question 52

b. zoning: The government’s police power to regulate the size, height, and placement of buildings on their sites, as well as its power to regulate construction methods and the uses to which property may be put, can have varying consequences regarding the individual properties affected thereby. ______ is thought to stabilize property values, because it enforces minimal standards of construction, assures a certain uniformity of building size and placement and
prevents detrimental incongruity in land use.

Answer 52

Zoning

Question 53

____ ________: During inflationary times, the government can restrain the natural operation of supply and demand by regulating the cost of goods and services, including housing costs. Rents, for
example, have been controlled under the Rent Stabilization Act. Such regulatory measures increase the effective demand of potential renters. Investors, however, may be reluctant to acquire properties
temporarily subject to rent control because of their fixed income potential, which may not keep up with
inflation.

Question 54

Increased __________ ________ can prime the pump of an ailing economy, create new jobs and thus increase the effective demand for real property, thereby raising its value

Answer 54

Government spending

Question 55

_________ and _______ ________: The value of real property is influenced by the availability of such governmental services as police and fire protection, garbage and sewage disposal, street lights, mail delivery, construction of streets and highways, and of other utilities, services and conveniences.

Answer 55

Utilities and related services

Question 56

_____________ __________ and ________: The economic worth of a parcel of land is
influenced by geographical, locational, and economic factors. These elements interact with a parcel’s _____ to invest it with economic value.

Answer 56

Environmental Conditions and Physical Factors
situs

Question 57

_______: Property in temperate regions may be more attractive and valuable than similar property situated in regions of extreme weather conditions.

Answer 57

climate

Question 58

Land’s __________ - its surface contour - can enhance or detract from its value
depending on the proposed use of the property. For example, residential property is thought to be most
attractive when located among gently rolling hills, but property with excessively steep hills may require excessive grading (leveling) before construction can begin.

Answer 58

topography

Question 59

____ and _____: Lots having identical square footage situated in comparable locations may vary significantly in value if one has a more pleasing or practical shape than the other

Answer 59

size and shape

Question 60

Combining two or more lots into one large parcel may invest the new site with a
value greater than the sum of its previous parts. The act of joining lots together is ___________, and the resultant increase in value is designated a ________ _________.

Answer 60

assembliage
plottage increment

Question 61

Shade trees enhance the desirability of residential property. Retail properties also benefit from _________ _____ because it protects merchandise from direct sunlight and attracts passers by. Because the south and west sides of the street receive the greatest shade, these are thought to be preferred locations for retail properties.

Answer 61

available shade

Question 62

___________: A house’s placement on its lot in relation to prevailing winds, rays of the sun, and neighboring properties can influence its value. Ideally, a home should be sheltered from the elements and
not be in extremely close proximity to neighbors, yet it should not be so isolated from its surroundings that it seems cut off from its environment.

Answer 62

Orientation

Question 63

____ _______________: Soil for residential properties must have adequate drainage and percolation.

Answer 63

Soil characteristics
Drainage
Percolation test

Question 64

________ refers to the ability of water to flow readily off the surface of the soil

Answer 64

Drainage

Question 65

In the standard ___________ ____, a hollow rod is inserted into the soil, and the time it takes for a specified amount of water to be absorbed into the soil is measured.

Answer 65

percolation test

Question 66

Pollution of air, water, and other natural resources creates undesirable, sometimes uninhabitable areas. Smog, water poisoned by industrial wastes, and jet noise all contribute to ____________ _____________ and lower property values.

Answer 66

environmental deterioration

Question 67

The Six-Steps Appraisal Process:
HINT: DP,CPS,GD,CA&CD,R,IAR

Answer 67

1. Defining the Problem
2. Conducting the Preliminary Survey
3. Gathering Data
4. Comparing, Analyzing and Classifying Data
   a. sales comparison approach
   b. cost approach
   c. income approach
5. Reconciliation – combining the results from 2 or more of the approaches to value
6. Issuing the Appraisal Report
   a. certificate or letter of appraisal
   b. check sheet – most often used for residential properties
   c. narrative report – usually used for commercial properties

Question 68

Three Approaches to Value:
HInt: CA,SCA,IA

Answer 68

Cost Approach
Sales comparison approach
Income approach

Question 69

The ____ _______ is the technique of estimating the value of the subject property by adding the depreciated replacement cost or reproduction cost of the improvements to the value of the land, if vacant. The depreciated replacement cost is calculated by subtracting the physical, functional, and
economic depreciation from the cost new of replacing or reproducing the improvements on the effective
date of the appraisal. Depreciation estimates are made by comparing the existing structure with a newly
constructed, duplicate or replacement building.

Answer 69

Cost Approach

Question 70

The Cost Approach is based on the appraisal principles of substitution, supply and demand, balance, and highest and best use. The Cost Approach is especially valuable when a lack of market activity limits the reliability of the sales comparison approach. The site value is usually estimated by the Sales Comparison Approach. You cannot use cost approach for ____

Answer 70

land

Question 71

___________ ____ is the cost at current prices to produce an exact duplicate.

Answer 71

Reproduction cost

Question 72

___________ ____ is the cost at current prices to replace a building with one of
equivalent utility.

Answer 72

Replacement cost

Question 73

The use of replacement cost usually results in an estimate that is considerably ____ than one based on reproduction cost.

Answer 73

lower

Question 74

___________ ____ or ______ ____ ______– uses an average cost per square foot including
materials and labor. This is the most commonly used method.

Answer 74

Comparative Unit or Square Foot Method

Question 75

____-in-_____ ______ – uses assigned values for each component part of the structure

Answer 75

Unit-in-Place Method

Question 76

_____ ____ ______ – similar to square foot method but based on volume instead of area; may be used for something with unusually high ceilings like a warehouse.

Answer 76

Cubic Foot Method

Question 77

________ ______ ______– computes the cost for every item that must be purchased to build the structure, then factors in the amount for the labor. This method is the most accurate and most expensive.

Answer 77

Quantity Survey Method

Question 78

____________ is a loss in value for any reason, and is the difference between the cost to construct an improvement and the amount paid for it once built. It may be curable or incurable.

Answer 78

Depreciation

Question 79

_______ ____________ is any type of depreciation in which the amount of money spent on repairing the deficiency
is equal to or less than the resulting increase in value

Answer 79

Curable Depreciation

Question 80

_________ ___________ is any type of depreciation in which the amount of money spent on repairing the deficiency is more than the resulting increase in
value.

Answer 80

Incurable Depreciation

Question 81

________ ____________: is the loss in value due to such factors as wear and tear from use, structural defects, and exposure to the elements. It is always curable.

Answer 81

Physical Depreciation

Question 82

__________ ___________: is a loss in value due to the development of new technology or design, and is an inadequacy or a lack of functional utility, or superadequacy, due to overbuilding or overdesign. It is sometimes curable.

Answer 82

Functional Depreciation

Question 83

________ ____________ is a loss in value caused by unfavorable economic influences occurring outside the property. It can be due to location or to economic factors. It is never curable. This is also sometimes called “________ ____________” or “________ ____________”.

Answer 83

External Depreciation
Economic Depreciation
Economic Obsolescence

Question 84

_________ ___ is based on the condition of the property. For example, if two houses were both built 10 years ago and one has been well maintained and one has not, the one that has been maintained would
have a lower effective age than the other.

Answer 84

Effective age

Question 85

________ ____ is the period of time over which a property may be profitably used. Forty to sixty years is the normal economic life of a building.

Answer 85

Economic life

Question 86

________ ____ ______ of ____________: The amount of depreciation is the same each year and is found by dividing the value by the number of years over which the property is being depreciated. For
example, if a $90,000 property having a land value of $30,000 and an expected economic life of 60 years would have a depreciation of $1000 per year. ($60,000 divided by 60 years) This is the method used to depreciate rental property on your income tax returns.

Answer 86

Straight Line Method of Depreciation

Question 87

The _____ __________ ________ is the technique of estimating the value of real estate by analyzing and comparing data of actual sales of similar, or comparable properties. Each comparable sale is adjusted to the subject property by making dollar value allowances for each significant difference. “This approach is
based on the principle of substitution”, which indicates that the value of the subject property is relative to the cost of acquiring an existing property with similar utility.

Answer 87

The Sales Comparison Approach

Question 88

1. Find recent comparable sales and listings.
2. Verify data.
3. Select relevant units of comparison.
4. Compare to subject property and adjust for differences.
5. Reconcile into single value or range of values.

Answer 88

The Five Steps in the Sales Comparison Approach

Question 89

1. Property rights conveyed
2. Financing terms
3. Conditions of sale
4. Market conditions
5. Location
6. Physical characteristics

Answer 89

Elements of comparison & Order of Adjustments

Question 90

Generally, an appraiser uses _ to _ comparables. However if the comparables are not all in the same area as the subject property, or if they sold more than 6 months ago, the appraiser should use more comparables. Appraisers can go farther back in time or farther away in distance to find comparable sales, but if so, more comparables should be used. So, as the question of how many comparables should be used, the best answer would be “__ ____ __ ________.”

Answer 90

3 to 5 comparables
as many as possible

Question 91

________ _____ or ______ _____: This is the technique of estimating the value of adjustments by the following procedure:
Sale Price of Property with Component - Sale Price without Component
= _____ of _________
If the comparable is superior to the subject property, a negative adjustment is made to the comparable. If the comparable is inferior, a positive adjustment is made. The comparables should have the same highest and best use as the subject.

Answer 91

Matched Pairs or Paired Sales
Value of Component

Question 92

The ___ __________ is found by adding or subtracting all of the adjustments.

Answer 92

net adjustment

Question 93

The _____ __________ is the sum of all adjustments whether they were plus or minus. If the _____ __________ is very high, that means too many adjustments had to made and the comparable is not a very good one. The appraiser may decide either to discard that comparable or give it less weight in the calculations.

Answer 93

gross adjustment

Question 94

The ______ ________ seeks to estimate the present worth of a property’s expected future income, and is
used for appraising income producing properties. “The principle of anticipation is the basis for the ______ _______.” The property’s value is expressed in the IRV formula:
Net Annual Income (I) divided by
Capitalization Rate X Value (RV)

Answer 94

The Income Approach

Question 95

The ___ ______ _____ is found by subtracting all operating expenses from the annual gross income. Operating expenses include real estate taxes, insurance, repairs, maintenance, decorating, wages,
management fees, utilities, vacancy losses, and reserves for replacement of stoves, carpeting, etc.

Answer 95

The net annual income

Question 96

The ______________ ____ represents the rate of return the investor can expect to receive from his investment in the property. It is expressed as a percentage. The _____ is understood to represent the present value of the anticipated benefits of ownership.
EXAMPLE: An apartment building brings in gross annual rents of $50,000. Expenses for the year were $10,000. If a capitalization rate of 10% is used, what is the value of the building?
$50,000 - $10,000 divided by 10% X V
$40,000 divided by 10%= $400,000

Answer 96

capitalization rate
value

Question 97

The _____ ____ __________ is used for obtaining a rough estimate of the value of certain kinds of properties, mainly smaller income properties or single family homes. Use of the GRM, is not to be thought of as a full-fledged appraisal technique.

Answer 97

gross rent multiplier

Question 98

The ___ is a number which when multiplied by a rental property’s income, gives an estimate of the property’s value.

Answer 98

GRM
GRM X INCOME= VALUE or
VALUE divided by INCOME = GRM or
VALUE divided by GRM = INCOME

Question 99

___________ __________ usually use a monthly income figure, whereas commercial properties use annual
income. The gross income is always used in this formula. The numerical value of a property’s GRM is established through a market analysis of the gross incomes and sales prices of comparable properties
which have sold recently. This will establish the ______ ___.

Answer 99

Residential properties
market GRM

Question 100

___________ __________ can appraise residential property up to a 4-plex.

Answer 100

Residential appraisers

Question 101

_______ __________ can appraise any property including commercial and larger residential properties.

Answer 101

General appraiser

Question 102

An appraiser who has completed the requirements of the Appraisal Institute may use the designation MAI which stands for ______ of _________ _________.

Answer 102

Master of Appraisal Institute

Question 103

The single most important factor in determining the value of a property is:
a. CMA
b. situs
c. demand
d. comparison

Answer 103

b. situs

Question 104

The four determinants of value are:
a. demand, utility, scarcity, transferability
b. desire, dust, competition, change
c. change, competition, demand, contribution
d. demand, utility, situs, transferability

Answer 104

a. demand, utility, scarcity, transferability

Question 105

The principle which is the basis for the Income Approach to value is:
a. substitution
b. supply and demand
c. anticipation
d. externalities

Answer 105

c. anticipation

Question 106

The principle which is the basis for the Sales Comparison Approach to value is:
a. substitution
b. supply and demand
c. anticipation
d. externalities

Answer 106

a. substitution

Question 107

The principle which states that the difference in value between two similar income properties is attributed to the
location of the land is:
a. substitution
b. anticipation
c. supply and demand
d. surplus productivity

Answer 107

d. surplus productivity

Question 108

The resulting increasing in value from assemblage is:
a. situs
b. plottage increment
c. surplus productivity
d. reconciliation

Answer 108

b. plottage increment

Question 109

The process by which the value is derived when using two different approaches to value is called:
a. plottage increment
b. surplus productivity
c. reconciliation
d. unit-in-place method

Answer 109

c. reconciliation

Question 110

The method of estimating cost which is the most accurate and the most time consuming is the
a. square foot method
b. cubic foot method
c. unit-in-place method
d. quantity survey method

Answer 110

d. quantity survey method

Question 111

The type of depreciation which is NEVER curable is called:
a. physical
b. functional
c. external
d. straight line

Answer 111

c. external

Question 112

10. The subject property is a 1500 square foot home. Comparable one is 1450 square foot, selling price $85,000.
    Comparable two is 1475 square feet, selling price $88,000. Comparable three is 1550 square feet, selling price
    $93,000. Based on square feet alone, and using a value of $50 per square foot for adjustment, what would be the
    value of the subject property?
    a. 87,500 b. 89,250
    c. 90,500 d. 89,083

Answer 112

d. $89,083