Certified Residential Appraiser Practice Exam

Which major cost estimating service is referenced in property appraisal?

1. CoreLogic

2. Marshall and Swift

3. Appraisal Institute

4. National Association of Realtors

The correct answer is: Marshall and Swift

Marshall and Swift is a well-known cost estimating service widely referenced in the property appraisal industry. Its primary function is to provide cost data used by appraisers to estimate the value of properties accurately. This service includes detailed information on construction costs, unit pricing for various types of buildings, and adjustments for geographical location and market conditions. Appraisers rely on this data when conducting cost approach valuations, ensuring that they have a reliable and standardized source to estimate replacement costs or reproduction costs for properties. The methodology employed by Marshall and Swift not only considers current construction trends but also takes into account various factors like labor costs and material prices, which are essential for accurate appraisals. In contrast, while the other organizations listed, such as CoreLogic, the Appraisal Institute, and the National Association of Realtors, play significant roles in the real estate industry, they do not serve the same primary function of providing detailed cost estimating services specifically tailored for property appraisal purposes.