Yha - Unit 09 Quiz (Chapters 19 & 23)

50 Questions | Total Attempts: 7880

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Course Quizzes & Trivia

90-Hour Broker Pre-License Course Quizzes


Questions and Answers
  • 1. 
    The income approach to value would be most important in the appraisal of
    • A. 

      A condominium.

    • B. 

      An office building.

    • C. 

      A single-family residence.

    • D. 

      A vacant residential lot.

  • 2. 
    In an old retail building, which of the following would most likely be an example of incurable functional obsolescence?
    • A. 

      Deficient and inadequate lighting

    • B. 

      Closely-spaced internal support columns

    • C. 

      An unattractive storefront

    • D. 

      A decrease in the area's population

  • 3. 
    Which is NOT a characteristic of value?
    • A. 

      Scarcity

    • B. 

      Transferability

    • C. 

      Obsolescence

    • D. 

      Utility

  • 4. 
    An appraiser is responsible for
    • A. 

      Finding value.

    • B. 

      Computing value.

    • C. 

      Determining value.

    • D. 

      Estimating value.

  • 5. 
    The term depreciation refers to the
    • A. 

      Value of real estate after the expiration of its useful life.

    • B. 

      Real estate's loss of value from any cause.

    • C. 

      Costs incurred to renovate or modernize a building.

    • D. 

      Capitalized value of lost rental income.

  • 6. 
    Which would be classified as external depreciation?
    • A. 

      A leaking roof that needs to be completely replaced

    • B. 

      Poorly maintained properties in the neighborhood

    • C. 

      A poorly designed floor plan that could be modified

    • D. 

      Convenient access to schools and recreational facilities

  • 7. 
    It is necessary to calculate a dollar value for depreciation when using which of the following?
    • A. 

      The sales comparison approach to value

    • B. 

      The cost approach to value

    • C. 

      The income approach to value

    • D. 

      Gross rent multipliers

  • 8. 
    The income approach as used by an appraiser makes use of which of the following?
    • A. 

      Equalization

    • B. 

      Depreciation

    • C. 

      Appreciation

    • D. 

      Capitalization

  • 9. 
    In the valuation of a large apartment complex, the most weight would be given to which approach to value?
    • A. 

      The cost approach

    • B. 

      The income approach

    • C. 

      The sales comparison approach

    • D. 

      All approaches are equally weighed

  • 10. 
    The fact that a still-servicable building is torn down is an indication of
    • A. 

      Curable physical deterioration.

    • B. 

      Incurable physical deterioration.

    • C. 

      The enforcement of building codes.

    • D. 

      Functional and external depreciation.

  • 11. 
    In the cost approach to value, the appraiser makes use of
    • A. 

      The owner's original cost of the building.

    • B. 

      The estimated replacement cost of the building.

    • C. 

      The sales prices of similar buildings in the area.

    • D. 

      The assessed value of the building.

  • 12. 
    The sales comparison approach to value would be most important when estimating the value of
    • A. 

      An existing residence.

    • B. 

      An apartment building.

    • C. 

      A retail location.

    • D. 

      A new residence.

  • 13. 
    In the income approach, the appraiser makes use of
    • A. 

      Reproduction cost.

    • B. 

      Capitalization rate.

    • C. 

      Depreciation schedules.

    • D. 

      Replacement cost.

  • 14. 
    When arriving at a final estimate of value, an appraiser would consider which of the following?
    • A. 

      The original price of the property if purchased within three years

    • B. 

      The average cost of comparable properties, after adjustments are made

    • C. 

      The reconciliation of values determined by the different appraisal methods

    • D. 

      The cost of updating the subject property, other than cost of carpet replacement

  • 15. 
    Using which of the following would require the value of the land to be calculated separately from the value of the improvements?
    • A. 

      The income approach

    • B. 

      The cost approach

    • C. 

      The sales comparison approach

    • D. 

      The gross rent multiplier

  • 16. 
    Reconciliation is best described as
    • A. 

      Selecting the highest value given by the three approaches to value.

    • B. 

      Comparing comparable properties and identifying their amenities.

    • C. 

      Determining the final value by selecting one value from those given.

    • D. 

      Analyzing the results obtained from the three approaches to value.

  • 17. 
    A building is valued at $215,000 and contains 4 apartments that rent for $470 each per month. The owner estimates that the net operating income is 65 percent of the gross rental receipts. What is the capitalization rate?
    • A. 

      3.7 percent

    • B. 

      6.8 percent

    • C. 

      10.5 percent

    • D. 

      14.2 percent

  • 18. 
    The gross rent mulitplier is used as a guideline for estimating value based on
    • A. 

      The ratio of the gross rents to the net rents after the expenses.

    • B. 

      The proportion of rents due to the actual rents collected.

    • C. 

      The capitalization of the annual gross rental income.

    • D. 

      The relationship of the sales prices to the gross rental income.

  • 19. 
    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
    • A. 

      External depreciation.

    • B. 

      Physical depreciation.

    • C. 

      Functional obsolescence.

    • D. 

      Economic deterioration.

  • 20. 
    To find the value of a property using the income approach to value, if the net operating income and the capitalization rate were known, the appraiser would
    • A. 

      Multiply the net operating income by the capitalization rate.

    • B. 

      Multiply the effective gross income by the capitalization rate.

    • C. 

      Divide the net operating income by the capitalization rate.

    • D. 

      Divide the capitalization rate by the net operating income.

  • 21. 
    When appraising a commmercial property, the appraiser is most concerned with the
    • A. 

      Accrued depreciation on the property.

    • B. 

      Income generated by the property.

    • C. 

      Sales prices of comparable properties.

    • D. 

      Total debt service on the property.

  • 22. 
    In the appraisal of an office building, which of the following would be classified as external depreciation?
    • A. 

      Termite damage to the structural components of the building

    • B. 

      A poor architectural design resulting in a cluttered floor plan

    • C. 

      An inadequate number of elevators and antiquated restroom facilities

    • D. 

      A law requiring the building to be retrofitted with fire sprinklers

  • 23. 
    This period of time over which an improvement to the property will contribute to its value is known as its
    • A. 

      Amortized life.

    • B. 

      Chronological life.

    • C. 

      Actual life.

    • D. 

      Economic life.

  • 24. 
    The market price of real estate is generally the same as
    • A. 

      The sales price.

    • B. 

      The market estimate.

    • C. 

      The highest and best use.

    • D. 

      The assessed value.

  • 25. 
    The market rent for a duplex is $650 per month per unit. If the GRM is 125, what is the value of the property?
    • A. 

      $81,250

    • B. 

      $162,500

    • C. 

      $126,500

    • D. 

      $216,500

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