Basic Real Estate Appraisal Quiz, 9th Edition
Student’s Name
Date
Chapter 11 Quiz
Circle T or F to indicate True or False as the better answer.
T ☐
F☒
1. Cost estimates are useful only in the cost approach to value.
T☒
F☐
2. The cost estimates used in appraisals should reflect cost levels on the date of value,
instead of actual or historic costs.
T☐
F☒
3. Replacement cost and reproduction cost are the same.
T☒
F☐
4. The cost approach is often emphasized when estimating the value of new or nearly
new property.
T☒
F☐
5. The quantity survey method is the most practical and widely used method of
estimating construction costs.
T☒
F☐
6. The unit-in-place method of estimating costs is most often used as a supplement to
refine the square-foot method.
T☒
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7. Direct cost elements include labor, materials, and design costs.
T☐
F☒
8. Indirect cost elements should not be included in cost estimates.
T☐
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9. Increased floor area results in higher costs on a per-square-foot basis.
T☒
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10. Some cost manual services provide online computer access.
Chapter 12 Quiz
Circle T or F to indicate True or False as the better answer.
T☐
F☒
all causes.
1. Accrued depreciation can be defined in appraisal terms as the total loss in value from
T☒
2. Economic obsolescence is caused by factors outside the property.
F☐
T☒
F☐
3. Depreciation is usually classified as incurable if it is not economically feasible to
correct the condition(s) causing the loss in value.
T☒
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4. A misplaced improvement suffers from functional obsolescence.
T☐
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5. Allowable deduction from book value is one of the four basic appraisal methods for
measuring accrued depreciation.
T☒
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6. The sales data or market method is the most direct way to estimate loss in value.
T☒
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7. When you base your depreciation estimate on the “effective age” of the building
rather than the actual age, you are attempting to estimate market’s view of the property.
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method.
8. A gross income multiplier is used to estimate loss in value by the cost-to-cure
T☒
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9. The capitalized income method can be used to estimate either the amount of accrued
depreciation from all causes, or that from a single cause.
T☐
F☒
10. A 50-year-old building with a total life expectancy of 100 years should be
depreciated at 50%, regardless of whether there is deferred maintenance and/or extensive updating.