Harrison Test II for Final

Harrison Test II for Final - Introduction to Appraisal...

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Introduction to Appraisal 0 1. 7. The term subject property is used to describe the property being appraised Which of the following is not an operating expense? in the: A.Vacancy loss B. Maintenance costs C. Attorney fees D. Accounting charges A . Market approach. B. Cost approach. C. Income approach. D. All of the above. 2. The definition of market value re- quires the property to have: A. Exposure to the open market. 8. The highest and best use of a property must be: A. The existing use. B. Marketable title. B. A legal use. C. Willing buyers and sellers. D. All of the above. C. A use permitted by the lender. D. The planned use. 3. Which of the following would make a property a poor comparable? 9. The principle that a dollar should be invested only when it will return more than a dollar's worth of benefit is called the Principle of- A. An exceptionally low down- payment and interest rate B. A seller who was in a hurry to sell C. A property which was sold at a A. Conformity. B. Supply and demand. foreclosure sale D. All of the above C. Contribution. 4. A comparable house is 75 square feet larger than the subject property at $50 a square foot. What approxi- mate adjustment is to be made by D. Highest and best use. 10. Effective gross income refers to: A. Scheduled gross income. B. Projected gross Income. the appraiser? A. Add $50 to the comparable's price B. Subtract $50 from the C. Projected gross income less vacancy and collection loss. comparable's price D. Projected gross income less C. Add $3,750 to the comparable's operating expenses. price D. Subtract $3,750 from the comparable's price The depreciation resulting from outmoded design is- 11. if the rents fall and the gross rent multipliers increase proportionately at the same time, what will happen to the indicated values? A. The values will fall 5. A. Functional obsolescence. B. Physical deterioration. C. External obsolescence. D. All of the above. B. The values will rise 12. The value of a property that has a projected net operating income of $ 1,000 per year and a rate of 125% is: C. The values will remain unchanged D. The values will fluctuate up and down Depreciation resulting from the nor- mal wear and tear on the property is- 6. A. $8,000. A. External obsolescence. B. Functional obsolescence. C. Physical deterioration. D. None of the above. B. $10,000. C. $12,500. D. $80,000. Examination II ~ Final Examination Page 1 of 12 - Appraisal Final Examination ~ Harrison
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I The added value from the combina- tion of two or more parcels of land is called: 19. 13. When appraising a condominium and using comparable from the same building, one would not have to adjust for: A. Subjective value. B. Replacement value. C. Liquidation value.
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This note was uploaded on 10/04/2011 for the course REAL ESTAT 40 taught by Professor Robertrooks during the Winter '08 term at El Camino.

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Harrison Test II for Final - Introduction to Appraisal...

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