Barney Fletcher Practice Exam 1 Questions and Answers| Rated A

Barney Fletcher Practice Exam 1 Questions and Answers (Latest 2023 – 2023) Rated A Which would NOT be used in the capitalization approach? A. gross income B. operating expenses C. reproduction cost D. allowance for vacancy - C. reproduction cost 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 p roperty using the cost approach? A. $133,500 B. $140,000 C. $173,500 D. $180,000 - C. $173,500 2,000 sf x $70 = $140,000. $140,000 - $5,000 - $1,500 = $133,500. $133,500 + $40,000 = $173,500 A well maintained home in an area of run down homes would be a n example of: A. physical depreciation B. functional obsolescence C. external obsolescence D. reproduction cost - C. external obsolescence An appraiser who was considering the effective age of a property with the chronological age would usually accept ea ch of the following statements EXCEPT: A. the effective age may be less than the chronological 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 - D. the effective age is usually greater than the chronological age 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 Barney Fletcher Practice Exam 1 Questions and Answers C. it would have to be enforced by the court D. its priority rights are determined by the date of recording - D. its priority rights are determined by the date of recording A property was assessed at 25% of market v alue. 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 - C. $120,000 $150 divided by .5% = $30,000. $30,000 divided by 25% = a total value of $120,000 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 C. whether it was a voluntary or involuntary lien D. type of lien - D. type of lien 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 - C. severalty 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 - D. eminent domain A property with a market value of $7,000 was assessed at 96% of value. The tax rate was 63 mills. W hat were the annual taxes? A. $43 B. $44 C. $423 D. $441 - C. $423 $7,000 x 96% = $6,720. $6,720 x 6.3% = $423.36