Fundamentals of Real Property Appraisal Course 101 Quiz 2

The cost of producing a building or structure having the same utility but using modern materials, design, and workmanship is called:

When a cost manual is being used, which one of the following components is not included in the inventory of physical characteristics for the building?

The underlying principle in the adjustment process in the sales comparison approach is the Principle of _____________.

You are analyzing resales to determine a time adjustment. You have found a sale that sold 18 months ago for $200,000 and sold again 8 months ago for $220,000. Based on this sale, the monthly adjustment for time would be

Which approach to value is premised on the Principle of Substitution?

The Principle of ______________ states that market value is never constant because environmental, government, social, and economic forces are at work influencing the property and its environment.

Which of the following is not an appropriate unit of comparison when multiple-unit residential properties are being appraised?

The cost of building an exact replica of a building is called:

Questions 9 and 10 are based on the following information. The direct costs for a single-family residence containing 1,500 square feet are $80.00 per square foot. Indirect costs are an additional 20 percent of direct costs. The land value is well supported at $50,000. The improvements are 10 years old and have depreciated at the rate of 0.5% per year. What is the cost of the new improvement?

Questions 9 and 10 are based on the following information. The direct costs for a single-family residence containing 1,500 square feet are $80.00 per square foot. Indirect costs are an additional 20 percent of direct costs. The land value is well supported at $50,000. The improvements are 10 years old and have depreciated at the rate of 0.5% per year. What is the indicated value of the property based on the cost approach?

When a direct method of measuring depreciation is used, the loss of value attributable to external obsolescence is measured by:

When a property experiences functional obsolescence, it:

What cost estimation method is considered the most accurate but is also the most time-consuming?

The first adjustment in the sales comparison approach is:

The following data are for questions 15, 16, and 17. RCN $368,000; Actual age 20 years; Total useful life 80 years; RCN: physical curable items $8,800; Total depreciation: physical curable items $10,000; Total depreciation: physical incurable short-lived items $60,000; Total depreciation: physical incurable short-lived items $17,200; Land value $75,000 What is the amount of depreciation for the physical incurable long-lived items?

The following data are for questions 15, 16, and 17. RCN $368,000; Actual age 20 years; Total useful life 80 years; RCN: physical curable items $8,800; Total depreciation: physical curable items $10,000; Total depreciation: physical incurable short-lived items $60,000; Total depreciation: physical incurable short-lived items $17,200; Land value $75,000 What is the total amount of physical depreciation for the property?

The following data are for questions 15, 16, and 17. RCN $368,000; Actual age 20 years; Total useful life 80 years; RCN: physical curable items $8,800; Total depreciation: physical curable items $10,000; Total depreciation: physical incurable short-lived items $60,000; Total depreciation: physical incurable short-lived items $17,200; Land value $75,000 What is the indicated value of the property, based on the cost approach?

When the interaction of supply and demand is being analyzed, which of the following influences demand?

Which of the following is a method that can be used to determine the adjustments in the sales comparison approach?

Which of the following is a situation in which the cost approach is the most applicable in estimating value?

Which of the following is not a characteristic of cost?

Which of the following is not an indirect cost?

Which of the following methods of estimating cost is the easiest, fastest, and most widely used method of estimating cost?

An indirect method of measuring depreciation is the:

The electrical outlets in the kitchen of a single-family residence are inadequate. The cost of the existing outlets is $3,600. The depreciation for the outlets is 50 percent. The cost to remove the old outlets and install adequate outlets is $4,600. There is not any salvage value in the old outlets. If adequate outlets had been installed originally, it would have cost $3,800. By installing adequate outlets, the increase in market value of the property will more than offset the cost of the new outlets. What is the amount of depreciation attributable to the electrical outlets in the kitchen?

What is the type of depreciation being calculated in question 25?

A single-family residence on a busy street rents for $850 per month. Similar residences off of the busy street rent for $900 per month. The GRM for this area is 150. the land-to-building ratio is 1:4. What is the indicated amount of depreciation?

What type of depreciation is being calculated in question 28?