The income apporach to value is most important in the appraisal of
An office building
In an old retail building, the following would most likely be a cause of incurable functional obsolescence?
Closely spaced internal support columns
The following are characteristics of value
Obsolescense is not
The expression "more buildings are torn down thatn fall down" refers to
Functional and external depreciation
An appraiser is responsible for
The term depreciation refers to the
Loss of value in real estate from any cause.
When appriasing real estate, the first consideration of the appraiser should be the
Highest and best use of the property
The following would be classified as external depreciation
Poorly maintained properties in the neighborhood
The income approach as used by an appraiser make use of the following
In the valuation of a large apartment complex, the most wetigh would be given to the
Income approach to value
In the cost apporach to value, the appraiser makes use of
estimated replacement cost of the building
The sales comparison apporach to value would be most inportant when estimating the value
an existing residence
In the income apporach, the appraiser make use of
The capitalization rate.
An appraiser who is using the sales comparison apporach to value woulduse all of the following comparable properties
- A similar home that wsa sold over 6 months ago
- A similar home that was sold recently but is located in another similar neighborhood.
- A similar home that was sold recently but is located on a much larger lot
- NOT a similar home that was sold by the owners who were undergoing a foreclosure.
Using which approcach would require the value of the land to be calculated seperately from the value of the improvements?
The cost apporach!
Reconsiliations is best described as
Analyzing the results obtained from the three apporaches to value
A building is valued at $215,000 and contains four apartments that rent for $470 each per month. The woner estimates that the net operating inclome is 65% of the gross rental receipts. What is the capitalization rate?
- $470 per unit/month x 4=1880x12=22,560
- 22,560 x 65%=14,664=Net operating Income NOI
- NOI÷cap rate = value 14, 664 ÷ $215,000=6.8%
The steps in the appraisal process include all of the following
- Gathering specific data on the subject property
- Gathering genera; date for the area of subject property.
- Applying the three approaches to value to the collected data.
- NOT Considering the seller estimate of the property's value
The gross rent muliplier is used as a guidleine for estimating value based on the
Relationship of the sales prices to the rental income.
Defined as a loss in value from any cause, depreciation is generally divided into three catagories. The loss of value due to normal wear and tear on a property is called
To find the calue of a property using the inclome approach to value, if the net operating income and the CAP rate are known, the appraiser would
Divide the net operationg income by the CAP rate.
An appriaser has been employed to estimate the market value of a parcel of vacant land. The resulting appraisal would include reference to all of the following
- The highest and best use of the parcel
- THe most probable price the parcel will bring
- The physical dimensions of the parcel
- NOT the listed price of the parcel
When appraising a commercial property, the appraiser is MOST concerned
Income generated by the property
It is necesssary to calculate a dollar value for depreciation when using which of the following?
The cost approach
In the appriasal of an office building, whick of the following would be classified as external depreciation?
A law requirinf rhw building to be retrofitted with fire sprinklers
The period over which improvement to the property will contirbute to it's value is known as its
The following is considered specific data
Dimensions of the subject property
When estimating the cvalue of the propert using the cost approach, the following would be cinsidered by the appraiser
- Estimated loss attributable to an outdated heating system
- Qaulitiy of materials and workmanship in the origional structure
- Excessive amount of traffic noice outside the property.
- NOT the loss of value due to uncollected delinquent rent
The market price of real estate is generally the
Reconciliation is an appriasal term used to describe
The appraiser's analysis and comparison of the results of each appraisal approach
An appraiser has been hired to prepare an appraisal on a property that includes an elegant old mansion that is now used as an insurance company office. Which apporach to value would the appraiser most rely on?
The income approach
A house with outmoded plumbing is suffering from
By today's standards, a four-bedroom house with one bathroom wold be considered
In the cost approach, an appraiser uses which of the following
An estimate of the building's replacement cost
In the income apporach, which of the following is considered when calculating the next operating income
- Real Estate Taxes
- Managment fees
- Not Debt service.