Test Bank for Real Estate Principles 4th
Edition by Valerie D. Thompson
An appraisal: - ANScannot be guaranteed or proven
In the valuation of a 600-unit apartment complex, the most weight would be
given to which of the following approaches to value: - ANSthe income capitalization approach
gross income less vacancy and rent losses and less operating expenses. - ANSThe annual net
operating income used in the income capitalization approach is the
The income capitalization approach to value would be most important in the appraisal of a (n): -
ANSoffice building
capitalization rate - ANSThe income approach makes use of the:
In the cost approach, the appraiser uses: - ANSthe estimate of the replacement cost of the
building
Reconciliation is the process of: - ANSanalyzing and weighing the findings from the three
approaches to an appraisal
The term "depreciation" refers to: - ANSa loss of value to an improvement to real property from
any cause
Income ? Value=Rate - ANSTo determine the capitalization rate of an office building, which of
the
following equations would be used?
What is the gross rent multiplier for a residential rental property with a
monthly rental income of $1400 and a sales price of $166,000? - ANS118.57
A building is valued at $215,000 and contains 4 apartment units 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? - ANS6.8%
Incurable functional deficiency - ANSAn office building which cannot accommodate a central air
conditioning system has a(n)?
Which of the following is NOT a characteristic of value? - ANSobsolescence
, effective demand
transferability
scarcity
utility
Answer: Obsolescene
conformity - ANSThe principle that states that the highest property values are located in areas
where the property use has a reasonable similarity to existing neighborhood standards is the
principal of:
The value of an income property may be estimated by: - ANSdividing the annual net operating
income by the capitalization rate
Which of the following is considered in determining the fair market value of a lot in a residential
neighborhood? - ANScomparable sales of similar lots
It is necessary to calculate a dollar value for depreciation when using which of the following? -
ANSthe cost approach to value
substitution - ANSThe sales comparison approach is based primarily on the principle of:
Which of the following represents external obsolescence? - ANSpoorly maintained properties in
the neighborhood
income, market data approach, cost approach - ANSThree approaches to appraisal are:
46.30 - ANSHow many cubic yards of concrete will it take to pour a driveway 25 feet wide and
100 feet long if it is 6 inches thick?
$833.33 - ANSHow much interest should be charged on a $10,000 loan which is paid off in one
lump sum in 10 months if the interest rate is 10%?
750 - ANSA seller needs to replace the siding on one end of his house. Assuming no waste,
how many square feet of siding will be needed to cover the wall which is 30 feet wide and 25
feet tall?
277.88 - ANSThe house at 915 Oak is valued at $195,000. The local tax rate is $1.71 per $100.
How much are the monthly taxes?
$1008.00 - ANSIf a house is valued at $300,000, excluding the lot, and its contents are valued
at $60,000, what is the annual insurance premium if the rate is 28 cents per hundred dollars on
the total of the two?
Edition by Valerie D. Thompson
An appraisal: - ANScannot be guaranteed or proven
In the valuation of a 600-unit apartment complex, the most weight would be
given to which of the following approaches to value: - ANSthe income capitalization approach
gross income less vacancy and rent losses and less operating expenses. - ANSThe annual net
operating income used in the income capitalization approach is the
The income capitalization approach to value would be most important in the appraisal of a (n): -
ANSoffice building
capitalization rate - ANSThe income approach makes use of the:
In the cost approach, the appraiser uses: - ANSthe estimate of the replacement cost of the
building
Reconciliation is the process of: - ANSanalyzing and weighing the findings from the three
approaches to an appraisal
The term "depreciation" refers to: - ANSa loss of value to an improvement to real property from
any cause
Income ? Value=Rate - ANSTo determine the capitalization rate of an office building, which of
the
following equations would be used?
What is the gross rent multiplier for a residential rental property with a
monthly rental income of $1400 and a sales price of $166,000? - ANS118.57
A building is valued at $215,000 and contains 4 apartment units 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? - ANS6.8%
Incurable functional deficiency - ANSAn office building which cannot accommodate a central air
conditioning system has a(n)?
Which of the following is NOT a characteristic of value? - ANSobsolescence
, effective demand
transferability
scarcity
utility
Answer: Obsolescene
conformity - ANSThe principle that states that the highest property values are located in areas
where the property use has a reasonable similarity to existing neighborhood standards is the
principal of:
The value of an income property may be estimated by: - ANSdividing the annual net operating
income by the capitalization rate
Which of the following is considered in determining the fair market value of a lot in a residential
neighborhood? - ANScomparable sales of similar lots
It is necessary to calculate a dollar value for depreciation when using which of the following? -
ANSthe cost approach to value
substitution - ANSThe sales comparison approach is based primarily on the principle of:
Which of the following represents external obsolescence? - ANSpoorly maintained properties in
the neighborhood
income, market data approach, cost approach - ANSThree approaches to appraisal are:
46.30 - ANSHow many cubic yards of concrete will it take to pour a driveway 25 feet wide and
100 feet long if it is 6 inches thick?
$833.33 - ANSHow much interest should be charged on a $10,000 loan which is paid off in one
lump sum in 10 months if the interest rate is 10%?
750 - ANSA seller needs to replace the siding on one end of his house. Assuming no waste,
how many square feet of siding will be needed to cover the wall which is 30 feet wide and 25
feet tall?
277.88 - ANSThe house at 915 Oak is valued at $195,000. The local tax rate is $1.71 per $100.
How much are the monthly taxes?
$1008.00 - ANSIf a house is valued at $300,000, excluding the lot, and its contents are valued
at $60,000, what is the annual insurance premium if the rate is 28 cents per hundred dollars on
the total of the two?
