CHAPTER SIXTEEN QUIZ

In the sales comparison approach, an adjustment is warranted if

Highest and best use of a property is that use which

As a component of real estate value, the principle of substitution suggests that

An office building lacks sufficient cooling capability to accommodate modern computer equipment. This is an example of

A significant difference between an appraisal and a broker’s opinion of value is

A notable weakness of the sales comparison approach to value is that

A home is located in a neighborhood where homeowners on the block have failed to maintain their properties. This is an example of

The concept of market value is best described as

The cost of constructing a functional equivalent of a subject property is known as

The first two steps in the cost approach are to estimate the value of the land and the cost of the improvements. The remaining steps are

The roof of a property cost $10,000. The economic life of the roof is 20 years. Assuming the straight-line method of depreciation, what is the depreciated value of the roof after 3 years?

The steps in the market data approach are

To complete the sales comparison approach, the appraiser

One weakness of the cost approach for appraising market value is that

In appraisal, loss of value in a property from any cause is referred to as