Which of the following is NOT normally considered a "fixed" operating expense?
Property Management
A reconstructed statement of NOI should include which of the following?
Management Expenses
Which of the following statements best describes the amount of adjustment an appraiser should make for vacancy allowance in a property?
The amount will vary per property
When using the income approach, whit is the initial step the appraiser must take in reconstructing an operating statement?
Estimate gross income
Which of the following methods is NOT an acceptable way for an appraiser to estimate a reserve for replacement adjustment in a expense forecast?
deduct lump sum payment in year one and discount this amount forward to the year of replacement
The time period to sell a property once the decision to sell is made known as the
marketing period
A lease in which the tenant pays out a portion of the operating expenses is known as a
net lease
The amount of space in a building that includes only the space that can be used by tenants is known as
net usable area
which of the following methods is an acceptable method used by appraisers to estimate resale proceeds?
forecast direct dollar amount based on a contractual purchase arrangement
Which of the following statements is correct in regard to the use of cash flow ratios?
cash flow ratios do not explicitly consider the time value of money
One property has increasing income and the other has steady, whats true?
the one with increasing income with have a lower cap rate with a higher value
Yield capitalization can best be described as
estimating the value of a property by discounting cash flows
Cash flow ratios used in direct capitalization can be a reliable estimate of value only if:
the income multiplier or cap rate is derived from com parable sales with the same potential for future income
Which of the following statements is NOT applicable when using income multipliers to estimate value?
The potential gross income multiplier is more appropriate to use when long term difference in vacancy between the subject and comparable occur
Which of the following statements is correct in regard to the sales comparison approach?
the comparables are adjusted to the subject property
Which of the following elements includes typical adjustments made in the sales comparison approach?
Property rights, financing, conditions of sale, and location
The land (subdivision) development method is a technique available to an appraiser for
estimating the value of the rites in a subdivision. The residual value of the land is
estimated by subtracting the present value of the development cost from the
present worth of total sales
The land (subdivision) development method is a technique available for appraising the
value of sites. Which of the following assumptions is NOT necessary for the proper
application of this method?
the development costs cannot exceed the price of the raw land
The subject matter of an appraisal assignment is a property subject to a ninety-nine year
lease. In an effort to render an opinion as to the value of the site, the appraiser has decided
to use the ground rent capitalization method. Given the length of the
present value of gross rent
Numerous techniques or methods are available to an appraiser for valuing land or sites to
be used for residential purposes. The most common method used by appraisers is the
sales comparison technique
The allocation method for valuing a site is generally more reliable under which of the following conditions?
When land sales are not directly available
The extraction method of site valuation involves which of the following techniques?
Subtracting the value of the building from the value of the property
Which of the following statements is TRUE in regard to excess land?
Excess land is usually added as a separate item in the sales comparison approach
The allocation method of estimating land value refers to?
allocating the value of subdivision to individual lots
The cost approach to value is generally the most useful when which of the following situations exist?
the building is new and being used under its HBU
Which of the following components is NOt used in the cost approach?
Acquisition Cost
The building cost estimate method that replicates the contractors development of a bid, and is the most comprehensive way to estimate building costs is known as the
quantity survey method
The method of estimating total replacement cost of a building which measures the total
square footage or cubic footage and multiplies this total by the current cost per square or
cubic foot is referred to as which of the following?
comparative unit method
The building cost estimate method that finds the costs of the component parts of a building
through standard cost estimates and adjusts for the condition of the component, time and
location is known as the
unit in place method
What term is used to denote the cost of creating an exact duplicate of the property
including all deficiencies and superadequacies in the current building?
reproduction cost
A superadequacy is defined as
a building feature where the cost of the time is greater than its contributing value
The period of time for which real estate improvements are expected to generate more
income than operating expenses cost is referred to as the
the total economic life
Which of the following represents the method used to measure physical curable depreciation?
the cost to cure the defect
The method of estimating depreciation by summing the individual types is known as the
breakdown method