Barney Fletcher Practice Exam 1 Questions with
CORRECT Answers (Grade A+)
Question 1:
Which would NOT be used in the capitalization approach? A. gross income B. operating expenses C.
reproduction cost D. allowance for vacancy
Answer:
C. reproduction cost
Question 2:
A property had a land value of $40,000, a 2,000 square feet structure with a rebuilding cost of $70 per
square foot, depreciation of $5,000 due to functional obsolescence and $1,500 due to physical
depreciation. What would be the estimate of value for this property using the cost approach? A.
$133,500 B. $140,000 C. $173,500 D. $180,000
Answer:
C. $173,500 2,000 sf x $70 = $140,000. $140,000 - $5,000 - $1,500 = $133,500. $133,500 + $40,000 =
$173,500
Question 3:
A well maintained home in an area of run down homes would be an example of: A. physical
depreciation B. functional obsolescence C. external obsolescence D. reproduction cost
Answer:
C. external obsolescence
Question 4:
An appraiser who was considering the effective age of a property with the chronological age would
usually accept each of the following statements EXCEPT: A. the effective age may be less than the
chronological
Answer:
D. the effective age is usually greater than the chronological age age B. improvement with new
materials could decrease the effective age C. modernizing or maintaining the building could decrease
the effective age D. the effective age is usually greater than the chronological age
, Question 5:
Which is NOT true about a mechanic's lien? A. it can be filed for the value of the cost of the
improvement B. it must be filed within a specified time period C. it would have to be enforced by the
court D. its priority rights are determined by the date of recording
Answer:
D. its priority rights are determined by the date of recording
Question 6:
A property was assessed at 25% of market value. The rate was $5 per $1,000. If the homeowner
actually paid $150, what was the total value of the property? A. $30,000 B. $82,500 C. $120,000 D.
$133,000
Answer:
C. $120,000 $150 divided by .5% = $30,000. $30,000 divided by 25% = a total value of $120,000
Question 7:
A property had several different encumbrances recorded against it. Which of the following factors
would indicate which would be paid off first? A. date of acknowledgement B. amount of the lien
Answer:
D. type of lien C. whether it was a voluntary or involuntary lien D. type of lien
Question 8:
A cooperative would take title to property under which of the following categories? A. tenants in
common B. joint tenancy C. severalty D. tenancy by the entireties
Answer:
C. severalty
Question 9:
Which of the following items would result in a transfer of real estate through court action? A. police
power B. constructive notice C. deed recordation D. eminent domain
Answer:
D. eminent domain
CORRECT Answers (Grade A+)
Question 1:
Which would NOT be used in the capitalization approach? A. gross income B. operating expenses C.
reproduction cost D. allowance for vacancy
Answer:
C. reproduction cost
Question 2:
A property had a land value of $40,000, a 2,000 square feet structure with a rebuilding cost of $70 per
square foot, depreciation of $5,000 due to functional obsolescence and $1,500 due to physical
depreciation. What would be the estimate of value for this property using the cost approach? A.
$133,500 B. $140,000 C. $173,500 D. $180,000
Answer:
C. $173,500 2,000 sf x $70 = $140,000. $140,000 - $5,000 - $1,500 = $133,500. $133,500 + $40,000 =
$173,500
Question 3:
A well maintained home in an area of run down homes would be an example of: A. physical
depreciation B. functional obsolescence C. external obsolescence D. reproduction cost
Answer:
C. external obsolescence
Question 4:
An appraiser who was considering the effective age of a property with the chronological age would
usually accept each of the following statements EXCEPT: A. the effective age may be less than the
chronological
Answer:
D. the effective age is usually greater than the chronological age age B. improvement with new
materials could decrease the effective age C. modernizing or maintaining the building could decrease
the effective age D. the effective age is usually greater than the chronological age
, Question 5:
Which is NOT true about a mechanic's lien? A. it can be filed for the value of the cost of the
improvement B. it must be filed within a specified time period C. it would have to be enforced by the
court D. its priority rights are determined by the date of recording
Answer:
D. its priority rights are determined by the date of recording
Question 6:
A property was assessed at 25% of market value. The rate was $5 per $1,000. If the homeowner
actually paid $150, what was the total value of the property? A. $30,000 B. $82,500 C. $120,000 D.
$133,000
Answer:
C. $120,000 $150 divided by .5% = $30,000. $30,000 divided by 25% = a total value of $120,000
Question 7:
A property had several different encumbrances recorded against it. Which of the following factors
would indicate which would be paid off first? A. date of acknowledgement B. amount of the lien
Answer:
D. type of lien C. whether it was a voluntary or involuntary lien D. type of lien
Question 8:
A cooperative would take title to property under which of the following categories? A. tenants in
common B. joint tenancy C. severalty D. tenancy by the entireties
Answer:
C. severalty
Question 9:
Which of the following items would result in a transfer of real estate through court action? A. police
power B. constructive notice C. deed recordation D. eminent domain
Answer:
D. eminent domain
