REP exam 4 MC.docx - CH.18 1 The most commonly used methods of real estate appraisal are a market approach income and cost b income reproduction and

REP exam 4 MC.docx - CH.18 1 The most commonly used methods...

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CH.18: 1. The most commonly used methods of real estate appraisal are a. market approach, income, and cost.b. income, reproduction, and cost.c. residual, cost, and market data.d. comparison, income, and capitalization. 2. When the appraiser has decided to use the market approach, which of the following conditions would disqualify a sale as a fair market value transaction? 3. The definition of fair market value requires, among other things, that the 4. The best definition of fair market value is the 5. If an appraiser felt some comparable sales were better indicators of value than other comparables, he would assign more weight to them in the a. adjusted sales price.b. correlation process.c. 4-3-2-1- rule.d. replacement cost approach. 6. In making an appraisal by the market comparison approach, an appraiser should 7. A residential lot purchased 3 years ago for $10,000 has doubled in value. The house on the lot cost $40,000 and it increased $20,000 in value. If the house and lot are sold at market value today, how much profit will be realized?
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8. The amount of money required to duplicate a property as of a certain date is called 9. In valuing a fire station, an appraiser would most likely emphasize the a. market approach.b. cost approach.c. income approach.d. capitalization approach.10. Which appraisal method would be most useful in appraising an unusual building which has a very limited and specific use?
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