PCA/CFSS 24 Hr Chapter 7
he sales comparison approach is based on the principle of - ✔✔substitution.
The income capitalization approach, or income approach, is more specifically used for
appraising - ✔✔income or rental properties.
A property is being appraised by the cost approach. The appraiser estimates that the land is
worth $10,000 and the replacement cost of the improvements is $75,000. Total
depreciation from all causes is $7,000. What is the indicated value of the property? -
✔✔$78,000
Which of the following is a step in the income approach? - ✔✔Apply the capitalization rate.
Noelle Value is appraising Bridgette Ohner's apartment complex using the income
approach. To determine her property's annual net operating income, Noelle must -
✔✔subtract the operating expenses from the effective gross income
The value of a property as estimated by a taxing authority as the basis for ad valorem
taxation is which type of real estate value? - ✔✔Assessed value
Which of the following best defines replacement cost? - ✔✔The cost at today's prices of
producing a similar or equivalent structure
The actual price of a property is known as what? - ✔✔Selling price
Ian Prazer is assessing Ryan Seller's property using the sales comparison method. Which of
the following statements is FALSE? - ✔✔Ian's first step will be to estimate the potential
gross income of Ryan's property.
The term for the value of a property that has reached its economic life is the: - ✔✔salvage
life
Tim and Sue have the smallest home in a sought-after neighborhood. The value of their
home is increased because of the higher value of the other homes in the neighborhood.
This is an example of what principle? - ✔✔progression
