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Questions and Answers
The reproduction cost of a building is the cost of building an exact replica.
True
An appraiser should make adjustments for inflation or deflation when using a comparable that sold in a market with flat prices.
True
Wear and tear that reduces the value of a property is considered to be functional deterioration.
False
If an appraiser finds that it would cost $380,000 to construct an exact replica of the subject property, this is an example of replacement cost.
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The gross income multiplier method is used primarily for appraising owner-occupied residences.
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Peeling paint and warped siding on an older house are examples of physical deterioration in appraisal.
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An appraiser multiplies the subject property's rent by the gross rent multiplier to find its value.
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The gross income multiplier method is primarily appropriate when valuing a single-family residence used as a rental.
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The process of analyzing value indicators from various appraisal methods to arrive at a final value estimate is known as interpolation.
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The square foot method is a method commonly used in valuing properties.
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