Question

I need at a one sentence explanation to why the answer is the answer too all questions listed below.

1. A house is appraised at $423,000, even though it cost $435,000 to build three years earlier. Which factor could NOT have contributed to the loss in value?

   1. Regression
   2. Gentrification
   3. Functional obsolescence
   4. Supply and demand

2. Trevor owns a vacant lot and employs an appraiser to determine the property’s

   1. growth.
   2. reproduction cost.
   3. replacement cost.
   4. highest and best use.

3. Since the Riverside factory closed, houses in Sunny Acres are taking longer to sell, and prices have gone down. This is a result of

   1. highest and best use.
   2. supply and demand.
   3. contribution.
   4. conformity.

4. A house that benefits from the desirability of its neighboring properties is an example of the principle of

   1. balance.
   2. contribution.
   3. progression.
   4. regression.

5. A homeowner’s deluxe five-bedroom house is in a neighborhood of modest three-bedroom houses. The value of the five-bedroom house will be affected because of the principle of

   1. substitution.
   2. scarcity.
   3. progression.
   4. regression.

6. An improvement to a house may or may not create a corresponding increase in the house’s market value. This is an example of

   1. balance.
   2. progression.
   3. contribution.
   4. regression.

7. The Miejas are looking forward to eventually retiring on the profit they will make from selling their house. Their attitude is an example of

   1. progression.
   2. growth.
   3. acquisition.
   4. anticipation.

8. House A sold for $867,000 and is comparable to the house being appraised, but it has an extra garage valued at $47,000. What is the adjusted value of house A?

   1. $767,000
   2. $813,000
   3. $820,000
   4. $914,000

9. To calculate the market value of a 19th-century San Francisco Victorian-style mansion using the cost approach, you probably would use

   1. reproduction cost.
   2. replacement cost.
   3. historical building cost.
   4. cost averaging.

10. The cubic-foot method of estimating construction cost is BEST used for

    1. single-family residences.
    2. manufactured homes.
    3. industrial properties.
    4. multifamily residential properties.

Answer 1

1. Gentrification because it is a process of renovating and improving a house and it is a trend in urban neighborhood which results in increased property value and displacing of lower income families and small business so option b is correct.

2.highest and best use because a vacant lot is more appraised by there employees so the property is more determined the best use of it so option d is correct.

3 supply and demand because the concept of supply and demand says that when rise in prices the demand will fall and supply means when rise in prices quantity also rises so option b is correct.

4 progression because the principal of progression says that the increased in work load for improvement to continue progressively take care of property so option c is correct.