CAE Assessment and Evaluation 5

Question 1

A 40-year-old house has been renovated thoroughly and kept in excellent condition. Compared with its chronological age, its effective age is most likely:

Accepted Answer

Lower

Answer

Effective age reflects condition and utility, so a well-kept property can have an effective age below its actual age.

Question 2

How does replacement cost differ from reproduction cost?

Accepted Answer

Replacement cost builds equivalent utility with modern materials and design

Answer

Reproduction cost is an exact duplicate, while replacement cost gives the same utility using current methods.

Question 3

When is a depreciation item considered curable?

Accepted Answer

When the cost to cure it is less than or equal to the value it would add

Answer

Depreciation is curable when it makes economic sense to fix it.

Question 4

In most U.S. assessment appeals, who generally carries the burden of proof?

Accepted Answer

The taxpayer, because the assessor's value is presumed correct

Answer

Assessments generally carry a presumption of correctness that the appellant must overcome with evidence.

Question 5

Under IAAO standards, what COD range is acceptable for newer or fairly homogeneous single-family residential properties?

Accepted Answer

5.0 to 10.0

Answer

IAAO recommends a COD of 5.0 to 10.0 for newer or homogeneous single-family homes and up to 15.0 for older or mixed areas.

CAE - Certified Assessment Evaluator Practice Test

CAE - Certified Assessment Evaluator Practice Test

CAE Assessment and Evaluation 5