22 Questions
Which approach is also known as the comparative or comparable Sales Approach?
Market Data Approach
What is the estimated amount for which a property should exchange between a willing buyer and a willing seller in an arm's-length transaction after proper marketing?
Market Value
What is the measure of the differences between the discounted revenues and the costs in a discounted cash flow analysis?
Net Present Value
What is a loss in value due to a decrease in the usefulness of property caused by various factors?
Obsolescence
Which term refers to the cost of creating a virtual replica of an existing structure, employing the same design, features, and materials?
Reproduction Cost (New)
What is the estimated amount that an entity would currently obtain from disposal of an asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life?
Residual Value
Which approach to value considers the sales of similar properties and establishes a value estimate by processes involving comparison?
Sales Comparison Approach
What is a table of market values of real properties within a local government unit, prepared by assessors?
Schedule of Market Values (SMV)
Which of the following best defines Tax Mapping?
A method of identifying property boundaries
What is the definition of Useful Life?
The period of time over which a property can perform its intended function
What is the definition of Valuation?
The process of estimating value
What is the definition of Zoning?
The process of directing and regulating land use in a community
Which one of the following best describes Lease Interest?
The ownership interest created by the terms of a lease
What are Leasehold Improvements also known as?
Tenant's Improvements
Which of the following is considered machinery for RPt purposes?
Machines used for manufacturing purposes
Which one of the following best defines the Principle of Substitution?
A prudent person will not pay more for a good or service than the cost of acquiring an equally satisfactory substitute
Which one of the following is true about Real Estate?
Real Estate includes both land and all things that are a natural part of the land, as well as buildings and site improvements that are attached to the land
Which one of the following best defines Remaining Economic Life?
The period of time expressed in years from the date of appraisal to the date when a machinery or building/improvement becomes valueless
Which one of the following best defines Replacement Cost (New)?
The cost of replacing an asset with an equally satisfactory substitute asset, derived from the current acquisition cost of a similar asset
Which of the following statements accurately describes how to compute the value of a triangular lot with its base on the street?
Adopt a value per square meter of two-thirds the SMV for similarly sized rectangular lot in the location.
How should the value of a triangular lot with its apex on the street be computed?
Adopt a value per square meter of one-third the SFMV for a similarly sized rectangular shaped lot in the location.
How should the value of a trapezoidal lot be computed?
Compute the values of the rectangular and triangular portions separately, according to the guide for that shape, and take the sum of the computed values for the total value.
Test your knowledge of Replacement Cost New Less Depreciation (RCNLD) and Reproduction Cost (New) with this quiz! Learn about these valuation terms commonly used by valuers in the Philippines and understand the difference between them. Challenge yourself and enhance your understanding of property valuation concepts.
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