ACCURACY IS GUARANTEED
Barney Fletcher Practice Exam 1 Questions with
Detailed Verified Answers for Accuracy
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
, ACCURACY IS GUARANTEED
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
, ACCURACY IS GUARANTEED
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?
A. date of acknowledgement
B. amount of the lien
Barney Fletcher Practice Exam 1 Questions with
Detailed Verified Answers for Accuracy
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
, ACCURACY IS GUARANTEED
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
, ACCURACY IS GUARANTEED
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?
A. date of acknowledgement
B. amount of the lien
