Appraisal 2nd 100 Questions
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Questions and Answers

  1. What method is being used when an appraiser estimates the cost of construction by considering the quantity and quality of all materials, as well as all categories of required labor, and unit costs are applied?

  • comparative unit
  • unit-in-place
  • cost-index trending
  • quantity survey (correct)

    1. An estimate of reproduction cost includes which of the following?

  • long-lived items only
  • the estimated cost of all items as of the effective date of appraisal with materials as they were installed (correct)
  • all items at their historical cost when they were installed new
  • all items at today's prices and with modern materials, including none of the deficiencies caused by changes in building techniques

    1. Entrepreneurial profit is best described by which of the following statements?

  • the amount of money entrepreneurs can borrow
  • the amount of money entrepreneurs expect to receive as a reward for their efforts
  • the amount of money entrepreneurs receive as a reward for their efforts (correct)
  • the amount of money reserved for unforeseen expenses

    1. When measuring a commercial office structure, an appraiser identifies the amount of space on which the rent is based. What measurement is the appraiser using?

    <p>net rentable area (@)</p> Signup and view all the answers

    1. If an appraiser estimates the current cost of individual units of construction and adds them up, what method is the appraiser using?

    <p>unit-in-place (@)</p> Signup and view all the answers

    1. When performing a cost analysis, where can an appraiser obtain information about the entrepreneurial incentive?

    <p>derive it from the local market (@)</p> Signup and view all the answers

    1. Which of the following statements best describes entrepreneurial incentive?

    <p>the amount of money entrepreneurs expect to receive as a reward for their efforts (@)</p> Signup and view all the answers

    1. The first step of the cost approach is to estimate?

    <p>the value of the site as if vacant and available to be put to its highest and best use. (@)</p> Signup and view all the answers

    1. Which of the following best describes direct costs?

    <p>expenditures for the labor and material used in the construction of the improvements (@)</p> Signup and view all the answers

    1. In terms of cost, what type of cost are appraisal fees?

    <p>indirect costs only (@)</p> Signup and view all the answers

    1. The total construction cost of a structure requires consideration of which of the following?

    <p>direct and indirect costs along with entrepreneurial incentive (@)</p> Signup and view all the answers

    1. When an appraiser estimates cost using a cost manual, which method is being used?

    <p>comparative unit (@)</p> Signup and view all the answers

    1. To which kind of cost should an appraiser attribute labor and materials to?

    <p>direct cost (@)</p> Signup and view all the answers

    1. A warehouse contains 45,000 square feet of building area. There is also an attached 65 feet x 100 feet canopy. The square foot reproduction cost is estimated at $65.00 for the building area and $25.00 for the canopy. What is the total reproduction cost new of the entire structure (rounded to the nearest $10,000)?

    <p>$3,090,000 (@)</p> Signup and view all the answers

    1. The final step of the cost approach is to?

    <p>add the site value to total depreciated cost. (@)</p> Signup and view all the answers

    1. Why is it important to include a local multiplier when determining the cost basis for a subject property?

    <p>to account for differences in labor and material costs (@)</p> Signup and view all the answers

    1. Marshall and Swift has three classifications for climate. The three classifications are?

    <p>mild, moderate and extreme. (@)</p> Signup and view all the answers

    1. When making wall height adjustment of 1.03, you’re adjusting for the fact that?

    <p>taller ceilings cost more to construct than lower ones. (@)</p> Signup and view all the answers

    1. A convenience store building contains 3,100 square feet of building area. There is a 42 feet x 24 feet attached canopy. The square foot reproduction cost is estimated at $94.00 for the building area and $27.00 for the canopy. What is the total reproduction cost new of the entire structure (rounded)?

    <p>$320,000 (@)</p> Signup and view all the answers

    1. If a residence were 75% carpet that cost $2.24 per square foot, and 10% ceramic title that cost $8.84 per square foot, and 15% vinyl sheet that $3.04 per square foot, what is the average cost for floor coverings?

    <p>$3.02 per sq. ft. (@)</p> Signup and view all the answers

    1. A one-story residence has a main section that is $1,100 square feet, what a full basement, and a 20x22 detached garage. If the replacement cost is estimated at $49.00 per square foot for the residence section and $18.00 per square foot for the garage. What is the total replacement cost new of the improvements? (rounded)

    <p>$62,000 (@)</p> Signup and view all the answers

    1. Which of the following is considered a plumbing fixture?

    <p>all of these answers (@)</p> Signup and view all the answers

    1. Why is it important to include a local multiplier when determining the cost basis for a subject property?

    <p>to account for differences in labor and material costs (@)</p> Signup and view all the answers

    1. What area is included in the gross living area?

    <p>finished floor areas above grade (@)</p> Signup and view all the answers

    1. When making a CCM adjustment using a cost manual, you are adjusting the cost for which of the following?

    <p>current cost multiplier (@)</p> Signup and view all the answers

    1. A one-story residence has a main section that is 45 x 55, a full basement that is 20 x 35, a back porch that is 10 x 12 and a 15 x 22 detached garage. What is the GLA of this residence?

    <p>2,475 (@)</p> Signup and view all the answers

    1. If a residence were 75% carpet that cost $2.24 per square foot, and 10% ceramic tile that cost $8.84 per square foot, and 15% vinyl sheet that cost $3.04 per square foot, what is the average cost for floor coverings?

    <p>$3.02 per sq. ft. (@)</p> Signup and view all the answers

    1. Assume that an open porch has a base cost of $12.14 per square foot. The subject has a 168 square feet open porch. What impact on cost would this have?

    Signup and view all the answers

    1. Marshall and Swift have three classifications for climate. The three classifications are?

    <p>mild, moderate and extreme (@)</p> Signup and view all the answers

    1. When making wall height adjustment of 1.03, you’re adjusting for the fact that?

    <p>taller ceilings cost more to construct than lower ones. (@)</p> Signup and view all the answers

    1. The older a building becomes, the great is the likelihood of it having?

    <p>all of these answers (@)</p> Signup and view all the answers

    1. When is an item of depreciation curable?

    <p>when the cost to cure is less than the expected increase in value (@)</p> Signup and view all the answers

    1. Which of the following describes the number of years that have elapsed since the construction of the improvements was completed?

    <p>all of these answers (@)</p> Signup and view all the answers

    1. Which of the following describes the age of a property that is based on the amount of observed deterioration and obsolescence it has sustained?

    <p>effective age (@)</p> Signup and view all the answers

    1. Suppose you are appraising a high-rise apartment building with fireproofed structural steel frames, concrete floors and roof, and metal and glass paneled walls. What class of construction is this building?

    <p>Class A (@)</p> Signup and view all the answers

    1. A building has been designed for maximum economic potential and to comply with standard construction codes, but extras in ornamentation and finishes are not evident. What quality rank should be chosen for this building?

    <p>average (@)</p> Signup and view all the answers

    1. Which of the following is the age of a property that is based on the amount of observed deterioration and obsolescence it has sustained?

    <p>effective age (@)</p> Signup and view all the answers

    1. You have a 20,000 square feet retail store with a concrete slab floor, stucco on masonry block exterior walls, and metal trusses as a roof structure partially supported by open steel framing members. What class of construction is this building?

    <p>Class C (@)</p> Signup and view all the answers

    1. The major employer in a small city just went out of business. This resulted in a loss of jobs and a subsequent decline in real estate values. Which of the following terms best describes this loss?

    <p>external obsolescence (@)</p> Signup and view all the answers

    1. Which of the following types of depreciation would a three-story office building without an elevator suffer?

    <p>functional obsolescence (@)</p> Signup and view all the answers

    1. What type of construction would a high-rise office tower be according to Marshall Valuation Service?

    <p>Class A fireproofed steel frame (@)</p> Signup and view all the answers

    1. Deprecation is a loss in value. Which of the following categories can these losses be attributed to?

    <p>physical, functional, or economic (@)</p> Signup and view all the answers

    1. Within each construction class, Marshall Valuation Service assigns a quality rating. What are the four quality ratings?

    <p>excellent, good, average, low-cost (@)</p> Signup and view all the answers

    1. According to Marshall Valuation Service, which construction class refers to reinforced concrete frame?

    <p>Class B (@)</p> Signup and view all the answers

    1. An appraisal of a single-family residence located adjacent to a busy highway might suffer from which of the following forms of depreciation?

    <p>external obsolescence (@)</p> Signup and view all the answers

    1. Which of the following statements regarding functional obsolescence is the most correct?

    <p>Functional obsolescence can be caused by poor design or layout. (@)</p> Signup and view all the answers

    1. When is an item of depreciation curable?

    <p>when the cost to cure is less than the expected increase in value (@)</p> Signup and view all the answers

    1. The older a building becomes, the great is the likelihood of it having?

    <p>all of these answers. (@)</p> Signup and view all the answers

    1. The older a building becomes, the great is the likelihood of it having?

    <p>all of these answers. (@)</p> Signup and view all the answers

    1. Which statement bet describes the term “depreciation”?

    <p>the difference between the reproduction or replacement cost and the market value of the improvements as of the effective date of the appraisal (@)</p> Signup and view all the answers

    1. When is an item of depreciation curable?

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    1. Which of the following describes the period of times over which the improvements will contribute to property value?

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    1. Which of the following describes the age of a property that is based on the amount of observed deterioration and obsolescence it has sustained?

    Signup and view all the answers

    1. The period of time over which the improvements will contribute to property value is described by which of the following terms?

    Signup and view all the answers

    1. The number of years that have elapsed since the construction of the improvements was completed is described by which of the following terms?

    Signup and view all the answers

    1. A building has been designed for maximum economic potential and to comply with standard construction codes, but extras in ornamentation and finishes are not evident. What quality rank should be chosen for this building?

    Signup and view all the answers

    1. Which of the following is the age of a property that is based on the amount of observed deterioration and obsolescence it has sustained?

    Signup and view all the answers

    1. Suppose you are appraising a high-rise apartment building with fireproofed structural steel frames, concrete floors, and roof, and metal and glass paneled walls. What class of construction is this building?

    Signup and view all the answers

    1. You have a 20,000 square feet retail store with a concrete slab floor stucco on masonry block exterior walls, and metal trusses as a roof structure partially supported by open steel framing members. What class of construction is this building?

    Signup and view all the answers

    1. When is an item of depreciation curable?

    Signup and view all the answers

    1. The older a building becomes, the great the likelihood of it having?

    Signup and view all the answers

    1. Which of the following types of depreciation would a three-story office building without an elevator suffer?

    Signup and view all the answers

    1. Which statement best describes the term “depreciation”?

    Signup and view all the answers

    1. An appraisal of a single-family residence located adjacent to a busy highway might suffer from which of the following forms of depreciation?

    Signup and view all the answers

    1. Which of the following statements describes the loss in value due to changes in market tastes and standards?

    Signup and view all the answers

    1. Depreciation is a loss in value. Which of the following categories can these losses be attributed to?

    Signup and view all the answers

    1. According to Marshall Valuation Service, which construction class refers to reinforces concrete frame?

    Signup and view all the answers

    1. What type of construction would a high-rise office tower be according to Marshall Valuation Service?

    Signup and view all the answers

    1. Within each construction class, Marshall Valuation Service assigns a quality rating. What are the four quality ratings?

    Signup and view all the answers

    1. Which of the following statements regarding functional obsolescence is the most correct?

    Signup and view all the answers

    1. Which of the following describes the age of a property that is based on the amount of observed deterioration and obsolescence it has sustained?

    Signup and view all the answers

    1. The period of time over which the improvements will contribute to property value is described by which of the following terms?

    Signup and view all the answers

    1. Suppose you are appraising a high-rise apartment building with fireproofed structural steel frames, concrete floors and roof, and metal and glass paneled walls. What class of construction is this building?

    Signup and view all the answers

    1. A building has been designed for maximum economic potential and to comply with standard construction codes, but extras in ornamentation and finishes are not evident. What quality rank should be chosen for this building?

    Signup and view all the answers

    1. Which of the following is the age of a property that is based on the amount of observed deterioration and obsolescence it has sustained?

    Signup and view all the answers

    1. You have a 20,000 square feet retail store with a concrete slab floor, stucco on masonry black exterior walls, and metal trusses as a roof structure partially supported by open steel framing members. What class of construction is this building?

    Signup and view all the answers

    1. An incurable functional problem is best defined as?

    Signup and view all the answers

    1. The major employer in a small city just went out of business. This resulted in a loss of jobs and a subsequent decline in real estate values. Which of the following terms best describes this loss?

    Signup and view all the answers

    1. The older a building becomes, the great the likelihood of it having?

    Signup and view all the answers

    1. When is an item of depreciation curable?

    Signup and view all the answers

    1. Which of the following statements describes the loss in value due to changes in market tastes and standards?

    Signup and view all the answers

    1. Within each construction class, Marshall Valuation Service assigns a quality rating. What are the four quality ratings?

    Signup and view all the answers

    1. Which of the following statements regarding Marshall Valuation service is most correct?

    Signup and view all the answers

    1. Which of the following statements regarding external obsolescence is the most correct?

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    1. What type of construction would a tilt-wall warehouse be according to Marshall Valuation Service?

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    1. Which of the following statements regarding physical deterioration is the most correct?

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    1. An appraiser observing infestation and action of the elements would classify them as?

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    1. Which of the following would be considered a long-lived component?

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    1. Which of the following could be a good example of inadequacy?

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    1. Which of the following can define the term “useful life”?

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    1. A warehouse recently sold for $1,950,000. The land value was estimated to be $750,000, and the replacement cost was estimated at $1,500,000. What percent deprecation was present in the improvements?

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    1. Which of the following items could be a good example of deferred maintenance?

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    1. A building has an effective age of 20 years and an estimated remaining economic life of 50 years. What is the total economic life of the building?

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    1. Which of the following is a good example of “economically feasible”?

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    1. A property has an overhead garage door that is 13 years old. It costs $1,900 to replace. Because the inclement weather comes out of the northwest, these doors typically last 15 years if they face the west and 25 years if they face east. This door faces east. What is the amount of value left in this item?

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    1. Which of the following can define the term “useful life”?

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    1. Which of the following can incur deprecation?

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    1. A building has an effective age of 20 years and an estimated remaining economic life of 50 years. What is the total economic life of the building?

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    1. A building has an effective age of 20 years and an estimated reimaging economic life of 50 years. What is the percentage of deprecation?

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    1. A property has a roof that is 8 years old. It cost $12,000 to replace. Roofs in this market typically last 15 years? What is the amount of value left in this item?

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