Which of the following appraisal methods uses a rate of investment return?
a. Sales comparison approach
b. Cost approach
c. Income approach
d. Gross income multiplier approach
Income approach
The characteristics of value include which of the following?
a. Competition
b. Scarcity
c. Anticipation
d. Balance
Scarcity
There are two adjacent vacant lots, each worth approximately $50,000. If their owner sells them as a single lot, however, the combined parcel will be worth $120,000. What principle does this illustrate?
Plottage
The amount of money a property commands in the marketplace is its
market value
A homeowner constructs an eight-bedroom brick house with a tennis court, a greenhouse, and an indoor pool in a neighborhood of modest two-bedroom and three-bedroom frame houses on narrow lots. The value of this house is MOST likely to be affected by which
Regression
In question 5, the owners of the lesser-valued houses in the neighborhood may find that the values of their homes are affected by what principle?
a. Progression
b. Increasing returns
c. Competition
d. Regression
Progression
For appraisal purposes, depreciation is NOT caused by
a. functional obsolescence
b. physical obsolescence
c. external obsolescence
d. accelerated capitalization
accelerated capitalization
The term reconciliation refers to which of the following?
a. Loss of value due to any cause
b. Separating the value of the land from the total value of the property to compute depreciation
c. Analyzing the results obtained by the different approaches to v
Analyzing the results obtained by the different approaches to value to determine a final estimate of value
If a property's annual net income is $24,000 and it is valued at $300,000, what is its capitalization rate?
8 percent
Certain figures must be determined by an appraiser before value can be computed by the income approach. Which of the following is NOT used by an appraiser applying the income approach to value?
a. Annual net operating income
b. Capitalization rate
c. Accr
Accrued depreciation
An appraiser, asked to determine the value of an existing strip shopping center, would probably give the MOST weight to which approach to value?
a. Cost approach
b. Sales comparison approach
c. Income approach
d. Index method
Income approach
The market value of a parcel of real estate is
an estimate of the most probable price it should bring
Capitalization is the process by which annual net operating income is used to
estimate value
From the reproduction or replacement cost of a building, the appraiser deducts depreciation, which represents
loss of value due to any cause
The effective gross annual income from a property is $112,000. Total expenses for this year are $53,700. What capitalization rate was used to obtain a valuation of $542,325?
10.75 percent
Which factor would be important in comparing properties under the sales comparison approach to value?
a. Active listings
b. Property rent roll
c. Depreciation
d. Date of sale
Date of sale
A building was purchased five years ago for $240,000. It currently has an estimated remaining useful life of 60 years. What is the property's total depreciation to date?
$18,462
In question 17, what is the current value of the building?
$221,538
The appraised value of a residence with four bedrooms and one bathroom would probably be reduced because of
a. external obsolescence
b. functional obsolescence
c. curable physical deterioration
d. incurable physical deterioration
functional obsolescence
An individual wants to be an appraiser in the northwest suburbs of Chicago. While she would be willing to appraise residential properties, her real interest is in appraising commercial properties. If she wants to be qualified to conduct appraisals under F
become a certified general appraiser