Mixed Deck — All SAEE Topics Flashcards

Find the missing value: 5, 11, 23, 47, ___

Answer: 95

Each term = previous × 2 + 1: 47 × 2 + 1 = 95.

In the cost approach, the land value must be estimated separately because:

Answer: Land does not depreciate

Land is considered to have an infinite economic life and does not depreciate, so it is valued separately from improvements.

An appraiser finds that adding a fourth bedroom to a three-bedroom home increases its value by only $5,000, while each of the first three bedrooms added far more. This illustrates the principle of:

Answer: Diminishing Marginal Returns

Diminishing marginal returns means each additional unit of improvement contributes less to overall value than the previous unit.

Which principle explains why an oversized luxury home in a modest neighborhood may not recover its full cost?

Answer: Regression

Regression holds that a superior property's value is pulled down by surrounding lesser-valued properties.

Which unit of comparison is MOST commonly used when applying the market approach to residential properties?

Answer: Price per square foot of living area

Price per square foot of living area is the most widely used unit of comparison for residential property valuation.

What does 'liquidation value' under IVS typically assume?

Answer: A forced or constrained sale, often within a limited time

Liquidation value assumes the seller is compelled to sell, often quickly.

Which sentence demonstrates correct use of a colon?

Answer: She needed the following: milk, eggs, and bread.

A colon follows a complete independent clause to introduce a list or explanation.

When a school compares its students' scores to the performance of a nationally representative group, it is using:

Answer: Norm-referenced interpretation

Norm-referenced interpretation evaluates performance relative to a standardized comparison group.

Before completing the Experience Inventory, the best preparation is to:

Answer: Review your own work history and accomplishments

Reviewing your actual history helps you answer accurately and quickly.

When IVS references 'highest and best use' in the context of real property, the concept requires that the use be legally permissible, physically possible, financially feasible, and:

Answer: Maximally productive

The four tests for highest and best use under IVS are: legally permissible, physically possible, financially feasible, and maximally productive.

A warehouse property is located in an area rapidly transitioning to residential condominiums. The HBU of the site 'as if vacant' is condominiums, but the warehouse generates positive cash flow. The correct conclusion is:

Answer: The HBU as improved is the warehouse use until conversion becomes more profitable than retaining operations

HBU as improved can differ from site HBU when existing improvements still generate returns that exceed the net value of demolition and redevelopment.

What term describes the degree to which a measurement tool produces consistent and stable results over repeated trials?

Answer: Reliability

Reliability refers to the consistency of a measurement tool — a reliable instrument yields similar results under the same conditions across multiple administrations.

The scope of work in a report should reflect:

Answer: The type and extent of research and analysis performed

Scope of work describes the research and analysis actually performed to develop credible results.

The Gross Rent Multiplier (GRM) is calculated as:

Answer: Sale Price ÷ Monthly Gross Rent

GRM = Sale Price ÷ Monthly Gross Rent; it is a quick market-derived ratio used as a check in the sales comparison approach for residential income properties.

Which sentence correctly uses 'its' or 'it's'?

Answer: The company lost its license.

'Its' is the possessive form; 'it's' means 'it is.'

What should you do if an Experience Inventory item is unclear?

Answer: Read it carefully and answer based on your best understanding

Careful reading and a best-faith answer are better than skipping or guessing wildly.

Which sentence uses the correct article?

Answer: She is an honest person.

'An' is used before words with a vowel sound, and 'honest' has a silent 'h.'

Choose the sentence that demonstrates correct subject-verb agreement.

Answer: Neither the teacher nor the students were aware of the change.

With 'neither...nor,' the verb agrees with the nearer subject ('students'), so 'were' is correct.

The quantity survey method of cost estimation is considered the most detailed because it:

Answer: Itemizes every material, labor hour, and overhead cost required for construction

The quantity survey method prices out each individual component of construction including materials, labor, equipment, and overhead for the most detailed estimate.

A structural engineer discovers a minor design flaw in a completed project that poses no immediate safety risk but could reduce the structure's lifespan. What is the most ethical course of action?

Answer: Notify the client and recommend a remediation plan

Engineers have an obligation to inform clients of any design issues and propose corrective measures, regardless of immediate risk level.