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Question
The choice of materials in construction should not depend upona. The lowest possible cost
b. Climate
c. Availability
d. Durability and style
Answer
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Related questions
Q:
Reversionary returns from an investment do not include equity build-up from loan pay-off.
Q:
A 50-year-old building with a total life expectancy of 100 years should be depreciated at 50%, regardless of its effective age.
Q:
Allowable deduction from book value is one of the four basic appraisal methods for measuring accrued depreciation.
Q:
A misplaced improvement suffers from functional obsolescence.
Q:
Increased floor area results in higher costs per square foot.
Q:
The cost estimates used in appraisals should reflect cost levels on the date of value, instead of actual or historic costs.
Q:
The land residual method is based on the principle of surplus productivity.
Q:
Variable units of comparison can often be effectively analyzed by graphing the sales.
Q:
Units of comparison are dollar or percentage amounts that are added to, or subtracted from, the comparable sales prices.
Q:
A neighborhood sales study finds selling prices of $150,000, $157,500, $159,000, $162,000, and $164,000 for homes similar to the subject property. The median price of this sample is $158,500.
Q:
Data resources on the internet provide general data on the economy and regulatory information of use to the appraiser.
Q:
Even though listings and offers may be available, they are of no significant use to an appraiser.
Q:
In a recent appraisal of a three bedroom home in a good location, the appraiser has analyzed three comparable sales. A summary follows:DataComparable #1 Comparable #2 Comparable #3Price paid$250,000$225,000$295,000LocationInferior EqualSuperior Lot sizeLarger than subject Smaller than subjectSmaller than subjectAmenities & ConditionEqual to subjectSuperior to subjectSuperior to subjectDollar Adjustments Indicated by Market StudyLocation difference = $30,000; Lot size difference = $25,000;Amenities and condition difference = $10,000;Problem:Relying upon the comparables and the adjustments indicated, what is the best value conclusion for the subject property?a. $220,000 b. $240,000c. $255,000 d. $270,000
Q:
Which of these procedures would be recommended when adjusting the sales of six-room houses with large size differences?
a. Apply the average square foot price derived from sales
b. Use the median price per room
c. Adjust each sale by the cost of the size difference
d. Graph the sales to explore the effect of size upon selling price
Q:
In the sales comparison approach, the price of a comparable property should be adjusted for which of the following?
a. Favorable or unfavorable financing
b. Cash sale
c. Typical third-party financing
d. None of the above
Q:
Real estate markets are considered to be imperfect because
a. Buyers and sellers are not always well-informed
b. Each property is relatively unique
c. There is imperfect competition for any one property
d. All of the above
Q:
To capitalize income, you could
a. Divide the net income by the capitalization rate
b. Multiply the income by a cap rate
c. Divide the net income into the rate
d. Change the method of accounting
Q:
A rectangular parcel of land containing five acres has 660 feet of frontage on a road. What is its depth?a. 495 feet b. 660 feetc. 330 feet d. None of the above
Q:
Which type of appraisals generally requires a state license or certification?
a. Those made to support federally-insured real estate loans
b. Private income tax appraisals
c. Appraisals made to settle divorce cases
d. All appraisals
Q:
The "ASA" designation offered by the American Society of Appraisers is associated witha. Expertise in all real estate fieldsb. Accredited Senior Appraiser c. Accredited membershipd. None of the above
Q:
Whether a Self-Contained, Summary, or Restricted Use appraisal report is used should depend upon all of the following except:
a. The intended use and intended user(s) of the appraisal
b. Which value approaches were used
c. A mutual understanding of the differences between the reporting options
d. The detail of disclosure needed
Q:
Which of the value approaches is considered to be the most direct?a. Cost b. Incomec. Sales comparison d. A combination of the above
Q:
What is the net income ratio of a property where the potential gross income is $110,000; the vacancy and collection loss is estimated at $10,000; and the operating expenses are estimated at $30,000?a. 30% b. 142%c. 100% d. 70%
Q:
Of the following alternative projects, one represents the highest and best use of a particular site being analyzed. Select the use that returns the greatest annual net income to the land after deducting a 10% return to the building cost.UseBuilding CostAnnual Net IncomeOffice Building$500,000$76,000Shopping Center$700,000$98,000Apartment$800,000$104,000a. Office building b. Shopping centerc. Apartment d. None of the above
Q:
A 10-unit property has a gross income of $8,000 per month. What is its probable value if the appropriate annual GIM is 8.0, based on analysis of comparable sales?
a. $ 768,000
b. $1,050,000
c. $ 640,000
d. $ 64,000
Q:
The income remaining after vacancy and credit losses are deducted from gross potential income is known as the
a. Net to operations
b. Net income
c. Effective gross income
d. None of the above
Q:
A 20-year old property sells for $240,000. If the lot is worth $100,000 and the cost new for the building is $200,000, what is the annual rate of depreciation as indicated by the market?a. 1.5% b. 2%c. 5% d. 1/2%
Q:
Which of the following is considered an indirect cost?
a. Labor costs
b. Material and equipment costs
c. Interest on construction financing
d. Subcontractors' fees
Q:
As used in appraisal, all cost estimates relate toa. "Book" costs b. Wholesale costsc. Cost of materials only d. Typical costs on the date of value
Q:
Which of these methods would be used to appraise a single-residential site in a built-up neighborhood where no vacant land sales are found?a. The abstraction method b. The land residual methodc. The land development method d. None of the above