CA Real Estate Property Valuation and Appraisal 3

Question 1

Which appraisal principle holds that the value of a component is measured by how much it adds to the whole property's worth?

Accepted Answer

Principle of contribution

Answer

Principle of conformity

Answer

Principle of progression

Answer

Principle of anticipation

Question 2

Which term describes the loss in value of a property due to physical wear and tear over time?

Accepted Answer

Physical deterioration

Answer

Functional obsolescence

Answer

Economic obsolescence

Answer

Accrued depreciation

Question 3

The principle of anticipation states that property value is based on:

Accepted Answer

The present worth of future benefits

Answer

Past sales prices of nearby properties

Answer

Current construction costs

Answer

The assessed tax value

Question 4

When comparing properties in the sales comparison approach, adjustments are made to which property?

Accepted Answer

The comparable sale only

Answer

The subject property only

Answer

Both the subject and comparable equally

Answer

Neither — no adjustments are needed

Question 5

What does 'effective age' mean in the context of real estate appraisal?

Accepted Answer

The age implied by the property's condition and utility

Answer

The actual number of years since construction

Answer

The age required by lender guidelines

Answer

The age recorded on the building permit

Question 6

Which of the following is NOT one of the four forces that influence real estate value?

Accepted Answer

Technological factors

Answer

Social factors

Answer

Economic factors

Answer

Governmental factors