appraisal
22. Value is best described as ? a. The price paid by the owner for the property. b. The present worth of future benefits c. The assessed valuation d. Whatever the market will bear
B
14. Three similar houses in the same subdivision are placed on the market at the same time. According to the law of supply and demand, which house will sell for the least amount of money assuming demand remains constant ? a. First b. Second c. Third d. All would sell for the same price....
a
15. Which of the following statements is a true statement ? a. Physical life is generally longer than economic life. b. Physical life is generally shorter than economic life. c. Physical and economic life are generally the same. d. It is impossible to tell
a
17. Which of the following principles of value would be a real estate salesperson consider first when doing a CMA ( competitive market analysis) a. The principle of conformity b. The principle of contribution c. The principle of substitution d. The principle of highest and best use
a
19. In determining total square footage of a dwelling, the appraiser would consider : a. Outside dimensions b. Inside dimensions c. Price per square foot d. Basement dimensions....
a
23. When determining effective gross income, an appraiser subtracts which of the following from gross income ? a. Vacancy rates and bad debts b. Management costs c. Maintenance, utilities and taxes d. All of these choices
a
11. The value of a property, as determined by a competent appraiser, is considered to be which of the following ? a. The actual value b. An Estimate of value c. The assessed value d. The market price
b
16. When appraising an office building using the capitalization approach, all of the following would be considered EXCEPT a. Operating Expenses b. Reproduction cost c. Vacancy allowance d. Estimated gross income....
b
18. The property being appraised has 4 bedrooms. The comparables in the area have only 3 bedrooms. Using the market data approach, how does the appraiser arrive at an estimate of value for the subject property ? a. Deduct the value of a bedroom from the selling price of the subject property. b. Add the value of a bedroom to the selling price of the comparables. c. Adjust the selling price of the subject property by the difference of the salary of the owners of the properties. d. Deduct the value of a bedroom from the price paid for the property by the current owner
b
2. Recognizing that property has experienced growth, stability and decline would be included in which part of an appraisal ? a. Site analysis b. Neighborhood analysis c. Highest and best use narrative d. Gross rent multiplier computation
b
20. Which of the following is NOT an economic characteristic of land ? a. Scarcity b. Immobility c. Ability to be improved d. Situs ( location)....
b
21. Using the reproduction method in the cost approach to appraisal is NOT a good indication of value for which of the following types of property ? a. A new office building b. An old residence c. A public library d. A new single family residence
b
3. A home located in an area where there are factories with much smoke and dust experiences : a. Physical deterioration b. Economic Obsolescence c. Locational obsolescence d. Functional obsolescence
b
1. If an appraiser advises you "this property suffers from incurable deprecation", what would he or she be describing ? a. Physical obsolescence b. Functional obsolescence c. Economic Obsolescence d. Generic Obsolescence
c
4. The cost of utilities, the expense of professional management and the cost to replace worn out appliances and furniture are used in which appraisal approach ? a. Market Data b. Comparables c. Income d. Cost
c
8. A home that has severely peeling paint would be an example of which of the following ? a. Correlation b. Obsolescence c. Depreciation d. Capitalization....
c
10. The period of time over which a property gives benefit to its owner is called a. Investment duration b. Value duration c. Physical life d. Economic life
d
13. What does an appraiser do FIRST, when given an assignment to appraise real property ? a. Prepares the reconciliation b. Does a correlation study c. Inspects the property d. Defines the problem
d
5. The principle of substitution is used in appraisal : a. In the income approach b. When the shape of the lot is irregular c. In the cost approach d. In the market Data approach
d
6. Which of the following is an example of functional obsolescence ? a. A house with a leaking water pipe b. Shutters that needed painting c. A house that is not near an elementary school d. A house without indoor plumbing
d
7. Which of the following statements is/are true ? a. Replacement cost means that the property is replaced by one with similar utility b. Reproduction costs means that the property is replaced by one that is identical to the subject property c. Using the cost approach tends to set the upper limits of value d. All of the above
d
9. Which of the following describes market value ? a. Asses valuation b. Listing price c. Reproduction cost less depreciation d. Most probable selling price
d
