Barney Fletcher Practice Exam 1 Questions and 100% verified answers 2026

Barney Fletcher Practice Exam 1 Questions and 100% verified answers 2026 Which would NOT be used in the capitalization approach? A. gross income B. operating expenses C. reproduction cost D. allowance for vacancy C. reproduction cost A property had a land value of $40,000, a 2,000 square feet structure with a rebuilding cost of $70 per square foot, depreciation of $5,000 due to functional obsolescence and $1,500 due to physical depreciation. What would be the estimate of value for this property using the cost approach? A. $133,500 B. $140,000 C. $173,500 D. $180,000 C. $173,500 2,000 sf x $70 = $140,000. $140,000 - $5,000 - $1,500 = $133,500. $133,500 + $40,000 = $173,500 A well maintained home in an area of run down homes would be an example of: A. physical depreciation B. functional obsolescence C. external obsolescence D. reproduction cost C. external obsolescence An appraiser who was considering the effective age of a property with the chronological age would usually accept each of the following statements EXCEPT: A. the effective age may be less than the chronological age B. improvement with new materials could decrease the effective age C. modernizing or maintaining the building could decrease the effective age D. the effective age is usually greater than the chronological age D. the effective age is usually greater than the chronological age Which is NOT true about a mechanic's lien? A. it can be filed for the value of the cost of the improvement B. it must be filed within a specified time period C. it would have to be enforced by the court D. its priority rights are determined by the date of recording D. its priority rights are determined by the date of recording A property was assessed at 25% of market value. The rate was $5 per $1,000. If the homeowner actually paid $150, what was the total value of the property? A. $30,000 B. $82,500 C. $120,000 D. $133,000 C. $120,000 $150 divided by .5% = $30,000. $30,000 divided by 25% = a total value of $120,000 A property had several different encumbrances recorded against it. Which of the following factors would indicate which would be paid off first?