Real Estate Appraisal

QUESTION 17

1. Which of the following is an example of a loss in value to the subject due to functional obsolescence?

   		The subject has a new high-efficiency furnace, and all the comparables do not.
   		The subject is a 10-year-old home in a market where decorating trends have since changed. The subject has been redecorated, but the comparables have not.
   		The subject improvement is 10 years old, and the market is paying less for the property because the short-lived components have less remaining life than the new components.
   		The subject property is improved with a 3 bedroom, 2 bath residence in which the third bedroom has no closets.

1 points

QUESTION 18

1. Which of the following statements about the reconciliation process is the most correct?

   		The reconciliation process is only used at the appraisers discretion, in certain specific circumstances.
   		Reconciliation involves an averaging of the value indications.
   		The reconciliation process must end with a single point estimate.
   		Reconciliation is the final phase of any valuation in which two or more value indications are derived.

1 points

QUESTION 19

1. Which of the following should always be part of the reconciliation process?

   		Averaging the indicated values from the three approaches to value
   		Choosing one of the value indications arrived at from applying the three approaches to value and using that as the final value rather than reconciling between the numbers
   		Making sure the report is addressed to the correct client
   		Analyzing the strengths and weaknesses of the approaches employed and arriving at a reasonable value conclusion somewhere within the range of the approachs conclusions.

1 points

QUESTION 20

1. Regarding the Cost Approach, theory has it that a developer would not undertake a project if, when complete, it wasnt worth any more than cost to build it. Some motivation is required. To account for this, the appraiser adds which of the following to the hard and soft costs?

   		Entrepreneurial Incentive
   		Physical Deterioration
   		Cost New
   		External Obsolescence