Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/22

Click to flip

22 Cards in this Set

  • Front
  • Back
The basis of market value is most typically:

A. utility value
B. book value
C. subjective Value
D. value determined between a willing buyer and willing seller
D. value determined between a willing buyer and willing seller
All of the following characteristics must be present for a property to have value except:

A. utility
B. obsolescence
C. transferability
D. effective demand
B. obsolescence
The amount of money a property will bring in the marketplace for sale in an area is called:

A. extrinsic value
B. intrinsic value
C. market value
D. GRM factor
C. market value
Applying the principle of conformity results in:

A. depreciation
B. minimizing value
C. maximizing value
D. competition
C. maximizing value
The cost of constructing a building of comparable utility using modern techniques and materials is:

A. reproduction costs
B. operating costs
C. unit cost
D. replacement cost
D. replacement cost
Physical deterioration is caused by all of the following EXCEPT:

A. unrepaired damage
B. lack of adequate maintenance
C. inefficient floor plan
D. inadequate exterior maintenance
C. inefficient floor plan
Functional obsolescence results from:

A. faulty design and inefficent use of space
B. changes in surrounding land-use patterns
C. enadequate exterior maintenance
D. extensive and poorly planned urban redevelopment
A. faulty design and inefficent use of space
Which of the following causes of depreciation is NOT curable by the property owner?

A. economic obsolescence
B. functional obsolescence
C. competitive obsolescence
D. physical deterioration
A. economic obsolescence
The principle followed in making adjustments to comparables in an appraisal by the market data approach is:

A. competition
B. change
C. contribution
D. conformity
C. contribution
An appraisal is:

A. estimate of value
B. appropriation of value
C. correlation of value
D. determination of value
A. estimate of value
All of the following are approaches to value EXCEPT:

A. cost approach
B. contribution approach
C. income approach
D. comparison approach
B. contribution approach
The primary appraisal method for estimating the value of vacant land is:

A. cost approach
B. market data approach
C. income approach
D. appraisal by capitalization
B. market data approach
All of the following are important data in selecting comparables EXCEPT:

A. size of the lot
B. income of the owners
C. location of the properties
D. condition of the properties
B. income of the owners
Using the capitalization formula, the income used as a basis for estimating value is:

A. monthly net
B. annual gross effective
C. monthly gross effective
D. annual net
D. annual net
If the income used in the appraisal by capitalization is $480,000, and the capitalization rate is 11 percent, which of the following will be the estimate of property value?

A. $2,290,000
B. $2,990,000
C. $4,363,636
D. $5,280,000
C. $4,363,636
All of the following are deductible from gross effective income in arriving at net operting income for appraisal purposes EXCEPT:

A. maintenance
B. legal fees
C. replacement service
D. debt service
D. debt service
In the income approach, which of the following is deducted from gross potential income to calculate gross effective income?

A. fixed expenses
B. vacancy loss
C. other income
D. replacement service
B. vacancy loss
If a property produces a gross income of $103,000 and the GIM is 7.5, which of the following is the indication of value?

A. $137,333
B. $772,500
C. $927,000
D. $1,373,333
B. $772,500
Which of the following would use the cost approach as the primary method of appraisal if comparable sales are not available?

A. shopping mall
B. courthouse
C. parking garage
D. condominium apartment
B. courthouse
All of the following are methods used for estimating replacement cost EXCEPT:

A. quantity survey
B. square foot
C. unit in place
D. quality survey
D. quality survey
The more uses a property can be put to, the greater the property's:

A. increasing and decreasing returns
B. economic life
C. physical life
D. utility
D. utility
An example of functional absolescence is:

A. plumbing that doesn't work
B. the adjacent garage dump
C. poor floor plan
D. foundation crack
C. poor floor plan