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REE 4103 Exam 2- No Math flashcard set Questions with 100% correct answers | verified | latest update 2024 $7.99
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REE 4103 Exam 2- No Math flashcard set Questions with 100% correct answers | verified | latest update 2024

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REE 4103 Exam 2- No Math flashcard set
A building that is too large for the neighborhood is an example of functional
obsolescence in the form of over improvement. Another example of functional
obsolescence is - ANS-an awkwardly shaped floor plan in an office building

A building that is too large for the neighborhood is an example of functional
obsolescence in the form of overimprovement. Another example of functional
obsolescence is - ANS-An awkwardly shaped floor plan in an office building

A comparable sale included the seller taking back a purchase-money mortgage at 3%
under the market rate for 10 years. The appraisal was based on the cash-equivalent
market value. The adjustment for this factor would be called a - ANS-Financing terms
adjustment

A defect is considered curable if - ANS-the cost to cure the condition is less than or
equal to the anticipated addition to value

A large home built in an area of small cottages is an example of - ANS-Incurable
superadequacy

A market conditions adjustment is applied in some situations because - ANS-The
market has changed since the comparable property sold

A ratio of land value to property value is extracted from comparable sales and applied to
the sale price of the subject property to arrive at the land value describes which of the
following terms? - ANS-Allocation

A residential property that is adjacent to an active and very noisy railroad corridor
probably suffers from - ANS-external obsolescence

A very expensive feature that is not recognized in the market at its physically
depreciated cost because it is too nice has - ANS-Superadequacy

Accrued depreciation can be defined in appraisal terms as - ANS-a total loss of value
from all causes

Adjustments for financing terms compensate for - ANS-A comparable that sold with
financing terms that were different than the terms defined in the appraisal report

, Adjustments for the property rights conveyed, financing, conditions of sale, and the date
of sale are often made to the _______________ of the comparable property -
ANS-Actual sale price

All of the following are accepted classifications of accrued depreciation for appraisal
purposes EXCEPT - ANS-Accounting allocation

All of the following are cost estimation methods except - ANS-Unit-Breakdown

An estimate of the depreciated cost of the improvements is deducted from the total sale
price of the property to arrive at the land value describes which of the following terms? -
ANS-Extraction

An example of a superadequacy is - ANS-an extra 50 feet of roof that you don't need or
an oversized walk in closet (something that isn't typcal of other houses in the market)

An open market transaction would not be one - ANS-Sold to a relative

Book depreciation refers to - ANS-the amount of capital recapture written off an owner's
books

Comparable sales that require no adjustment to the subject are usually sales - ANS-In
new developments with nearly identical properties

Comparative analysis is - ANS-A general term used to describe the process by which
qualitative or quantitative techniques are used to derive a value opinion in the sales
comparison approach

Cost index trending is - ANS-Estimating current cost based on the original cost
extended to the effective date

Cost is - ANS-The actual amount of expenditure necessary to acquire or produce
something

Curable functional obsolescence is - ANS-the result of either a deficiency or an excess

Curable physical deterioration is - ANS-items (deferred maintenance) that a prudent
purchaser would anticipate correcting immediately upon acquisition of the property

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