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If the land to building ratio is 1:5, then the land is ____________.
Correct!
Wrong!

What is the order of the Highest and Best Use analysis?
Correct!
Wrong!

Performing compounding and discounting calculations involves the variable of _______.
Correct!
Wrong!

The overall goal of the appraisal process is to produce ____________.
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At the time of construction, the cost index was 146 and the total construction costs for the subject property were $155,000. Calculate the estimated cost of the subject if the current index is 275.
Correct!
Wrong!

True or False : The absorption rate refers to the amount of time over which it is estimated that the individual lots will sell.
Correct!
Wrong!

In which of the following land value techniques is the gross sale price estimated and costs (such as construction, management, or developer’s profit) deducted to arrive at a net income.
This net income is then discounted to a present value estimate for the underlying land.
This net income is then discounted to a present value estimate for the underlying land.
Correct!
Wrong!

Data that relates directly to the subject property is known as ________.
Correct!
Wrong!

True or False : Vacancy and Credit Loss in real estate investing is the amount of money or percentage of net operating income that is estimated to not be realized due to nonpayment of rents and vacant units.
Correct!
Wrong!

_____________________ is realized when the improved property sells.
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The range, variance, and standard deviation are measures of _______.
Correct!
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The amount of income produced by a piece of property, plus miscellaneous income, less vacancy costs and collection losses is called ___________.
Correct!
Wrong!

True or False: Discounting is the future value of a present benefit.
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A local developer is constructing a 3,400 SF commercial building. The cost to construct the building is $152 per square foot. The capitalization rate for the land is 9% and the capitalization rate for the building is 11%. The NOI for the entire property is $66,000 per year.
What is the value of the land using the land residual method?
What is the value of the land using the land residual method?
Correct!
Wrong!

Similar to the Ground Rent Capitalization technique, this method converts the allocated portion of a property’s income that is attributable to the land, and again divides it by a land capitalization rate that is market derived.
What is the name of this technique?
What is the name of this technique?
Correct!
Wrong!

The present value of $1 factor is also referred to as the _____ factor.
Correct!
Wrong!

Which of the following is true about ground rent capitalization?
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The question of feasibility is/is not similar to the question of curability.
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Which order should percentage adjustments be made in?
Correct!
Wrong!

A local developer is constructing a 3,400 SF commercial building. The cost to construct the building is $152 per square foot. The capitalization rate for the land is 9% and the capitalization rate for the building is 11%. The NOI for the entire property is $66,000 per year.
What is the building income?
What is the building income?
Correct!
Wrong!

The four tests for highest and best use are/are not required to be completed in sequential order.
Correct!
Wrong!

A local developer is constructing a 3,400 SF commercial building. The cost to construct the building is $152 per square foot. The capitalization rate for the land is 9% and the capitalization rate for the building is 11%. The NOI for the entire property is $66,000 per year.
What is the land income?
What is the land income?
Correct!
Wrong!

If a ground lease generates an annual net income of $25,000 and the market shows a capitalization rate of 10%, the value of the IRV formula is _______.
Correct!
Wrong!

The Cost Approach includes _____________________.
Correct!
Wrong!

____________ is the maximum rental income possible from a property without vacancy or credit losses.
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Race and religion are considered
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The highest and best use analysis as if improved helps with the property management function of deciding among the following:
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If a ground lease generates a monthly net income of $4,000 and the market reflects a cap rate of 9%, the value using the IRV formula is _________.
Correct!
Wrong!

True or False: Reproduction Cost is the cost of constructing new the existing building at today's construction standard using today's materials.
Correct!
Wrong!

What is the value of a property if the NOI is $65,000 and the market derived capitation rate is 13.75%
Correct!
Wrong!

The major premise behind the _______________ is that the future benefits of the income stream have value in the present time.
Correct!
Wrong!

What is the median of the following data set?
$156,$125,$177,$124,$125,$170,$150
$156,$125,$177,$124,$125,$170,$150
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Wrong!

True or False: The Modified Economic Age/Life Method breaks down the component parts of the structure into two categories and measures physical deterioration for each category separately. The two categories are Curable Physical Deterioration and Incurable Physical Deterioration.
Correct!
Wrong!

What site value technique(s) use the IRV formula?
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Wrong!

A(n) __________ focuses on the profitability of a specific project.
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The principal amount of plus any accrued interest is the ________.
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Extreme values in a data set are known as _____________.
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Generally, _________________ consist of making either percentage or dollar adjustments to account for the differences between the subject and the comparable sales.
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A unit of comparison is calculated by which of the following formulas?
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The actual age of the improvements is also called the _________________.
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Ten acres of raw land is to be subdivided into 15 residential lots. The total project cost including developer's profit is $175,000 per lot. The appraiser estimates the lots will sell for $250,000 each. Without discounting, what is the theoretical value of the raw land?
Correct!
Wrong!

True or False: Reproduction Cost is the cost of constructing new the existing building at today's construction standard using today's materials.
Correct!
Wrong!

After conducting a through investigation, the appraiser finds that a legal authority would in fact allow for a change in use. This can ___________________.
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Wrong!

If the gross income is $60,000 and the sales price was $500,000, the gross income multiplier would be ________________.
Correct!
Wrong!

The formula for income capitalization is _____________.
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Wrong!

Examples of __________ costs are architectural, engineering, financing, and legal fees, and other pre and postconstruction expenses.
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Wrong!

The land to building ratio is 1:4 and the total property value is $350,000. What is the estimated land value?
Correct!
Wrong!

True or False: Replacement Cost is the cost of reproducing an exact duplicate of the existing building using the exact materials and the construction standards of the original improvement.
Correct!
Wrong!

What is the first step in the appraisal process?
Correct!
Wrong!

If the cost new is $300,000 and the expected life is estimated as 60 years, what is the annual amount of depreciation using the straightline method?
Correct!
Wrong!
