Real Estate Appraisal and High and Best Use Quiz

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What is the formula to calculate the Market Value of a property?

New Reproduction + Replacement Cost + Land Value

New Reproduction / Replacement Cost - Depreciation + Land Value (correct)

Land Value - Depreciation + New Reproduction

Replacement Cost / Depreciation + Land Value

How is the depreciation of machinery and equipment calculated according to the Straight Line Method?

Estimated Useful Life / 100%

100% / Estimated Useful Life (correct)

Estimated Remaining Life / 100%

100% / Estimated Remaining Life

What is the purpose of a Machinery Appraisal?

To determine the market value of a property

To calculate the depreciation of tangible assets

To observe the condition of machinery and equipment and determine their usable percentage (correct)

To determine the land value of a property

What is the formula to calculate the cost of a gate or fence?

Length of fence x Height of Fence x Unit Cost of Fence Signup and view all the answers

What is the formula to calculate the Yearly Gross Income?

Number of Units x Monthly Unit Income x 12 months Signup and view all the answers

What type of property includes land, building, and any annexes attached to the land?

Real Property Signup and view all the answers

In property appraisal analysis, what is considered a bundle of rights?

Real Property Signup and view all the answers

What decision is vital in the management of real estate property before action is taken?

Appraising the property Signup and view all the answers

Which action is a small business owner likely to question when deciding on a property for a new retail store?

Where will I place the store? Signup and view all the answers

When appraising a property, what important question needs to be considered for a lease option?

What is the monthly cost? Signup and view all the answers

Which statement accurately describes real estate property in a business context?

It secures the business location and is essential for business ventures. Signup and view all the answers

What is the key focus of an appraisal in the context of a small business owner?

Value estimation of the property Signup and view all the answers

What is important for a small business owner to evaluate regarding the location of the property in the market?

Market value equivalence Signup and view all the answers

Which factor is essential for a small business owner considering the financial implications of renting a property?

Augmenting sales through monthly rental costs Signup and view all the answers

What is the primary action associated with property appraisal analysis?

Estimating or valuing something Signup and view all the answers

Real Estate Appraisal and High and Best Use Quiz

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