Fin 480 | Real Estate Appraisal | Exam 2 v1
8. To qualify as a comparable, a sale must be all of the following except
A. A competitive property
B. An open market transaction
C. Exactly equal to the subject property
D. Recent in time of sale
9. A competitive property means one that
A. A prospective buyer would consider it as an alternative purchase
B. Has superior features
C. Is more attractively priced
D. Appeals to a different sub-market
10. Required data about a comparable sale should include
A. Sale transaction data
B. Physical characteristics
C. Legal characteristics
D. All of the above
11. (Bonus) In adjusting a sale, the appraiser should always
A. Adjust the sale to the subject
B. Adjust the subject to the sale
C. Add or subtract dollar amounts
D. Consider all of the above rulest)
| P1 (10 points):
The drawing below shows the outline of a one-story house with an attached garage. Construction costs new for this type of house are $62.00 per square foot for living area and $26.00 per square foot for the garage. Based on this information, estimate the total cost new of the improvements. Garage 20’ x 19’ House 41’ x 22’ |
Section 2: Problem solving questions; (Demonstrate your calculation steps to receive partial credit)
| P3 (30 points):
A house has an estimated replacement cost of $200,000. The house is 10 years old (that’s its actual age), and it has an estimated economic life of 65 years. It is in need of repainting and other minor repairs, which will cost a total of $5,000. The remaining economic life of the house is currently estimated at 52 years; the remaining economic life would be 55 years if the needed repairs were completed. Estimate the depreciated value of the house under both versions of the economic age-life method (considering cost to cure or not). Method 1 (without considering cost to cure): Method 2 (considering cost to cure): |
Section 2: Problem solving questions; (Demonstrate your calculation steps to receive partial credit)
ANSWER SHEET 3 (Continue) Last Name: ___________________First Name: _____________________Student ID: _______________________ Section 2: Problem solving questions; (Demonstrate your calculation steps to receive partial credit)
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