Which would NOT be used in the capitalization approach? A. gross income B. operating expenses C. reproduction cost D. allowance for vacancy - ✔✔C. reproduction cost A property had a land valu... e of $40,000, a 2,000 square feet structure with a rebuilding cost of $70 per square foot, depreciation of $5,000 due to functional obsolescence and $1,500 due to physical depreciation. What would be the estimate of value for this property using the cost approach? A. $133,500 B. $140,000 C. $173,500 D. $180,000 - ✔✔C. $173,500 2,000 sf x $70 = $140,000. $140,000 - $5,000 - $1,500 = $133,500. $133,500 + $40,000 = $173,500 A well maintained home in an area of run down homes would be an example of: A. physical depreciation B. functional obsolescence C. external obsolescence D. reproduction cost - ✔✔C. external obsolescence An appraiser who was considering the effective age of a property with the chronological age would usually accept each of the following statements EXCEPT: A. the effective age may be less than the chronological age B. improvement with new materials could decrease the effective age C. modernizing or maintaining the building could decrease the effective age D. the effective age is usually greater than the chronological age - ✔✔D. the effective age is usually greater than the chronological age Which is NOT true about a mechanic's lien? A. it can be filed for the value of the cost of the improvement B. it must be filed within a specified time period C. it would have to be enforced by the court D. its priority rights are determined by the date of recording - ✔✔D. its priority rights are determined by the date of recording [Show More]
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