Chapter 19: Real Estate Appraisal

Question 1

6.8 percent

Answer 1

A building is baked at $215,000 and contains 4 apartments that rent for $470 each per month. The owner estimates that the bet operating income is 65 percent of the gross rental receipts. What is the capitalization rate?

Question 2

A law requiring the building to be retrofitted with fire sprinklers

Answer 2

In the appraisal of an office building, what would be classified as external depreciation?

Question 3

A reconciliation of value The date of the appraisal The report of final opinion

Answer 3

An appraisal report contains all of the following

Question 4

An estimate of the buildings replacement cost

Answer 4

In the cost approach an appraiser uses what?

Question 5

An existing residence

Answer 5

The salsa comparison approach to value would be most important when estimating the value of?

Question 6

An office building

Answer 6

The income approach to value would be most important in the appraisal of?

Question 7

Analyzing the results obtained from the three approaches to value

Answer 7

Reconciliation is best described as?

Question 8

Capitalization

Answer 8

The income approach as used by an appraiser makes use of what?

Question 9

Capitalization rate

Answer 9

In the income approach, the appraise makes use of?

Question 10

Closely-spaced internal support columns

Answer 10

In an old retail building, which would most likely be an example of incurable functional obsolescence?

Question 11

Divide the net operating income by the capitalization rate

Answer 11

The find the value of a property using the income approach to value, if the net operating income and capitalization rate were known, the appraiser would?

Question 12

Economic life

Answer 12

The period of time over which an improvement to the property will contribute to its value is know as?

Question 13

Estimate the value of a property

Answer 13

The purpose of an appraisal is to?

Question 14

Estimating value

Answer 14

An appraiser is responsible for?

Question 15

Functional and external depreciations

Answer 15

The fact that still serviceable building is torn down is an indication of?

Question 16

Functional obsolescence

Answer 16

A house with outmoded plumbing is suffering from?

Question 17

Functional obsolete

Answer 17

By today’s standards a 4 bedroom house with one bathroom would be considered to be?

Question 18

Income approach

Answer 18

An appraiser has been hired to prepare an appraisal on a property that includes an element old mansion that is now used as an insurance company office. Which approach to value would the appraiser rely on most?

Question 19

Income generated by the property

Answer 19

When appraising a commercial al property, the appraiser is most concerned with the?

Question 20

Loss of value due to uncollected delinquent rent Estimated loss attributable to an outdated heating system Quality of materials and workmanship in the original structure

Answer 20

When estimating the value of property using the cost approach, all of the following would be considered by the appraiser

Question 21

Obsolescence

Answer 21

What is not a characteristic of value?

Question 22

Physical depreciation

Answer 22

Defined as a loss in value from any cause, depreciation is generally divided into three categories. The loss of value due to the normal wear and tear on a property is called?

Question 23

Poorly maintained properties in the neighborhood

Answer 23

What would be classified as external depreciation?

Question 24

Real estate taxes Management fees Utilities

Answer 24

In the income approach what is considered when calculation the net operating income?

Question 25

Real estates loss of value from any cause

Answer 25

The term depreciation refers to?

Question 26

Scarcity

Answer 26

A buyer is considering the purchase of an apartment building in an area where there is limited multi-family zoning. This situation would be best described by the economic characteristic of?

Question 27

Sold in the last six months Sold recently and is located in the same neighborhood Sold recently but is located on a much larger lot

Answer 27

An appraiser who is using the sale comparison approach to value would use all of the following comparable properties…

Question 28

The appraisers analysis and comparison of the results of each appraisal approach

Answer 28

Reconciliation is an appraisal term used to describe?

Question 29

The cost approach

Answer 29

Using what would require the value of the land to be calculated separately from the value of the improvements.

Question 30

The cost approach to value

Answer 30

It is necessary to calculate a dollar value for depreciation when using what?

Question 31

The estimated replacement cost of the building

Answer 31

In the cost approach to value, the appraiser makes use of?

Question 32

The highest and best use of the parcel The most probable price the parcel will bring The physical dimensions of the parcel

Answer 32

An appraiser has been employed to estimate the market value of a parcel of vacant land. The resulting appraisal report would include reference to.

Question 33

The income approach

Answer 33

In the valuation of a large apartment complex, the most weight would be given to which approach to value?

Question 34

The relationship of the sales prices to the gross rental income

Answer 34

The gross rent multiplier is used as a guideline for estimating value based on?

Question 35

The sales price

Answer 35

The market price of real estate is generally the same as?

Question 36

The value of the comparable will be adjusted upwards.

Answer 36

The subject property has three bedrooms and two baths. A comparable property has two bedrooms and one bath. What is true?