The unit-in-place method estimates cost by:
Correct Answer
A) Pricing installed components — walls, roof, floors — as whole units
Why this is correct: The unit-in-place method estimates cost by pricing installed assemblies or components (e.g., cost per square foot for a finished exterior wall, a roof section, or a floor system). It is more detailed than the comparative-unit method but less exhaustive than a quantity survey. Why the other choices are wrong: "Multiplying total floor area by one rate" describes the comparative-unit (square-foot) method. "Trending the original construction contract" describes the index method. "Counting every individual nail, fixture and labor hour separately" describes the quantity-survey method. Exam tip: Unit-in-place = pricing by assembled component (wall, roof, floor), not by individual item or by total square footage.
Why This Is the Correct Answer
Why this is correct: The unit-in-place method estimates cost by pricing installed assemblies or components (e.g., cost per square foot for a finished exterior wall, a roof section, or a floor system). It is more detailed than the comparative-unit method but less exhaustive than a quantity survey. Why the other choices are wrong: "Multiplying total floor area by one rate" describes the comparative-unit (square-foot) method. "Trending the original construction contract" describes the index method. "Counting every individual nail, fixture and labor hour separately" describes the quantity-survey method. Exam tip: Unit-in-place = pricing by assembled component (wall, roof, floor), not by individual item or by total square footage.
More Cost Approach Questions
In a cost approach for a proposed building, the appropriate cost basis is generally:
A warehouse cost $210,000 to build when the cost index stood at 105. The index is now 210. Its indicated current cost is:
The age-life method expresses depreciation as:
Market extraction of depreciation is limited by the fact that it:
Functional obsolescence caused by a deficiency is measured as curable when:
Curable physical deterioration is measured at cost to cure because:
A 2,050 sq ft dwelling is priced at $178 per square foot with a $34,000 detached garage and $21,500 of site improvements. Cost new is:
A house has three bedrooms sharing one bathroom, and adding a second bath is economically justified. This is:
Direct costs in a construction budget include:
An appraiser writes that a 40-year-old house has an effective age of 10 but describes original wiring, original kitchen and a 25-year-old roof. The report's problem is:
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Income Approach
8.2% of exam
Previous Question
Total economic life differs from remaining economic life in that total economic life:
Next Question
A custom-built single-family residence includes a 1,200-square-foot indoor lap pool with full filtration, dehumidification, and climate control systems. The owner reports annual operating costs of $18,400, and only 3% of comparable high-end homes in this market include such a feature. A recent sale of a similar home without the pool closed at $1.42 million; the subject itself sold three months earlier for $1.39 million after extended marketing and documented buyer reluctance, and the market has been flat over that three-month interval. The pool's reproduction cost new is $215,000. Measuring the loss by market extraction rather than by a cost-based computation, what loss in value does the evidence support for this superadequacy?