Appraisal Depreciation, real estate exam Flashcards

Appraisal Depreciation, real estate exam Flashcards A substantial difference in value between two properties that were built concurrently on adjoining lots of equally valuable land with construction and maintenance costs the

same, would most likely be caused by:

Functional obsolescence within one of the properties

15. An appraiser would define depreciation as: Loss in value from any cause

Insofar as real property is concerned, the major cause of

loss of value is due to:

Obsolescence When trying to determine the amount of economic obsolescence suffered by a commercial property, the answer to which of the following questions would be of

most benefit:

Are the tenants in the neighborhood prospering?Why is the replacement cost approach easier to apply to a

new building than an old building:

Because of depreciation estimates

An example of functional obsolescence could be: A one-car garage

Which of the following would be considered an example of economic obsolescence?An over-supply of like properties The impairment of desirability and usefulness in real

property brought about by economic changes is known as:

Obsolescence

The ultimate test of functional utility is the: Marketability

The age of a house can be determined most accurately by

inspecting which of the following:

Tax assessor's records Functional obsolescence might be attributed to each of the

following except:

The proximity of obnoxious nuisances A contractor was building a new home. Before completion, he received several offers to rent the property. Just before completion, the city announced that it was taking 10 feet off the front of the property to widen the street to facilitate traffic. Thereafter, offers to rent were for approximately 10% less. This would be an example of which of the

following types of depreciation:

Economic obsolescence The type of depreciation that would be the most difficult to

cure would be:

Economic obsolescence A neighborhood apartment house would suffer economic

obsolescence from each of the following, except:

Heating and cooling system is wearing out When an appraiser is considering the economic life and the

physical life of a building, the economic life is usually:

Shorter Of the following, which would most nearly refer to loss in

value due to economic obsolescence:

A change in nearby zoning The one particular area that appraisers find most difficult to

measure accurately is:

Accrued depreciation

Of the following factors, that which would not contribute to

obsolescence is:

Wear and tear from use The type of depreciation which is socially oriented and from which we derive the saying "more buildings are torn down

then fall down", would be known as:

Economic obsolescence