** Chapter 16 Gold Coast Real Estate
Homework
A 4 bedroom, 2 bathroom subject property has no pool. A comparable property that sold for
100,000 has 3 bedrooms, 2 baths, and a pool. Estimated values in that neighborhood are
4000 for a bedroom and 10,000 for a pool. What is the adjusted price of the comparable?
(a) 106,000
(b) 86,000
(c) 114000
(d) 94000 - ANS-(d) 94000
\A comparable property recently sold for $575,000, with a golf course view. The subject
property is similar in all other respects, but has no golf course view. In this area a golf course
view is estimated to add $15,000 to the value of a property. Which would be the correct
adjustment?
(a) Increase the adjusted selling price of the subject property to $590,000.
(b) Decrease the adjusted selling price of the subject property to $560,000.
(c) Increase the adjusted selling price of the comparable to $590,000.
(d) Decrease the adjusted selling price of the comparable to $560,000. - ANS-(d) Decrease
the adjusted selling price of the comparable to $560,000.
\A homeowner visited a resort which contained a beautiful pool with caves and a lazy river.
The homeowner then spent $100,000 to create a similar setting in their own yard. When the
property was appraised for financing purposes, the appraiser only allocated $10,000 for the
pool. What is this an example of?
(a) An un-informed appraiser
(b) Straight line depreciation
(c) Accelerated depreciation
(d) An over improvement - ANS-(d) An over improvement
\A house that is valued at $65000 rents for $500 a month. What is the gross rent multiplier
(GRM)?
(a) 75
(b) 130
(c) 80
(d) 108.3 - ANS-(b) 130
\A new airport built in proximity to a residential neighborhood may cause properties to lose
value due to which of the following?
(a) Physical deterioration
(b) External obsolescence
(c) Functional obsolescence
(d) Proximity obsolescence - ANS-(b) External obsolescence
, \A property with an inefficient floor plan would suffer from __________________________
obsolescense.
(a)
(b)
(c)
(d) - ANS-
\A real estate licensee who is not registered or certified appraised may provide all of the
following valuation services EXCEPT:
(a) comparative market analysis
(b) valuation services in a non federally related transaction
(c) appraisal in a federally-related transaction
(d) broker price opinion - ANS-(c) appraisal in a federally-related transaction
\A residence has a living area measuring 42 ft by 38 ft and a garage that measures 24 ft by
22 ft. An appraiser feels that today's cost to reproduce the living area would be $63.00 per
square foot and to reproduce the garage would be $19.00 per square foot. The home, which
is 5 years old, is estimated to have a useful life of 50 years. Based on this information, what
is the depreciated cost of the property?
Hint: Start by calculating the current reproduction cost of the property.
(a) $11,058
(b) $99,522
(c) $110,580
(d) $121,638 - ANS-(b) $99,522
\A residence recently sold for $300,000 that was rented for $2,850 per month. What is the
monthly gross rent multiplier?
(a) 87
(b) 88
(c) 95
(d) 105 - ANS-(d) 105
\A subject property has 4 bedrooms and the comparable property has 3 bedrooms. A
bedroom in that neighborhood has an estimated value of $3500. What adjustment should be
made using the cost comparison approach?
(a) subtract 3500 from the comparable property sale price
(b) add 3500 to the subject property's sale price
(c) subtract 3500 from the subject property sale price
(d) add 3500 to the comparable property sale price - ANS-(d) add 3500 to the comparable
property sale price
\A subject property is located in close proximity to a planned airport runway expansion. What
category of depreciation would apply to this property if there is a loss in value when they
runway was built?
(a) physical deterioration
(b) functional obsolescence
Homework
A 4 bedroom, 2 bathroom subject property has no pool. A comparable property that sold for
100,000 has 3 bedrooms, 2 baths, and a pool. Estimated values in that neighborhood are
4000 for a bedroom and 10,000 for a pool. What is the adjusted price of the comparable?
(a) 106,000
(b) 86,000
(c) 114000
(d) 94000 - ANS-(d) 94000
\A comparable property recently sold for $575,000, with a golf course view. The subject
property is similar in all other respects, but has no golf course view. In this area a golf course
view is estimated to add $15,000 to the value of a property. Which would be the correct
adjustment?
(a) Increase the adjusted selling price of the subject property to $590,000.
(b) Decrease the adjusted selling price of the subject property to $560,000.
(c) Increase the adjusted selling price of the comparable to $590,000.
(d) Decrease the adjusted selling price of the comparable to $560,000. - ANS-(d) Decrease
the adjusted selling price of the comparable to $560,000.
\A homeowner visited a resort which contained a beautiful pool with caves and a lazy river.
The homeowner then spent $100,000 to create a similar setting in their own yard. When the
property was appraised for financing purposes, the appraiser only allocated $10,000 for the
pool. What is this an example of?
(a) An un-informed appraiser
(b) Straight line depreciation
(c) Accelerated depreciation
(d) An over improvement - ANS-(d) An over improvement
\A house that is valued at $65000 rents for $500 a month. What is the gross rent multiplier
(GRM)?
(a) 75
(b) 130
(c) 80
(d) 108.3 - ANS-(b) 130
\A new airport built in proximity to a residential neighborhood may cause properties to lose
value due to which of the following?
(a) Physical deterioration
(b) External obsolescence
(c) Functional obsolescence
(d) Proximity obsolescence - ANS-(b) External obsolescence
, \A property with an inefficient floor plan would suffer from __________________________
obsolescense.
(a)
(b)
(c)
(d) - ANS-
\A real estate licensee who is not registered or certified appraised may provide all of the
following valuation services EXCEPT:
(a) comparative market analysis
(b) valuation services in a non federally related transaction
(c) appraisal in a federally-related transaction
(d) broker price opinion - ANS-(c) appraisal in a federally-related transaction
\A residence has a living area measuring 42 ft by 38 ft and a garage that measures 24 ft by
22 ft. An appraiser feels that today's cost to reproduce the living area would be $63.00 per
square foot and to reproduce the garage would be $19.00 per square foot. The home, which
is 5 years old, is estimated to have a useful life of 50 years. Based on this information, what
is the depreciated cost of the property?
Hint: Start by calculating the current reproduction cost of the property.
(a) $11,058
(b) $99,522
(c) $110,580
(d) $121,638 - ANS-(b) $99,522
\A residence recently sold for $300,000 that was rented for $2,850 per month. What is the
monthly gross rent multiplier?
(a) 87
(b) 88
(c) 95
(d) 105 - ANS-(d) 105
\A subject property has 4 bedrooms and the comparable property has 3 bedrooms. A
bedroom in that neighborhood has an estimated value of $3500. What adjustment should be
made using the cost comparison approach?
(a) subtract 3500 from the comparable property sale price
(b) add 3500 to the subject property's sale price
(c) subtract 3500 from the subject property sale price
(d) add 3500 to the comparable property sale price - ANS-(d) add 3500 to the comparable
property sale price
\A subject property is located in close proximity to a planned airport runway expansion. What
category of depreciation would apply to this property if there is a loss in value when they
runway was built?
(a) physical deterioration
(b) functional obsolescence
