10 Questions
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.
True
The gross income multiplier method is used primarily for appraising owner-occupied residences.
False
Peeling paint and warped siding on an older house are examples of physical deterioration in appraisal.
True
An appraiser multiplies the subject property's rent by the gross rent multiplier to find its value.
True
The gross income multiplier method is primarily appropriate when valuing a single-family residence used as a rental.
True
The process of analyzing value indicators from various appraisal methods to arrive at a final value estimate is known as interpolation.
False
The square foot method is a method commonly used in valuing properties.
False
Test your knowledge on real estate appraisal principles and techniques. Questions cover topics such as adjustments for inflation, construction costs, and property valuation methods.
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