Appraisal - Practice tests

A commercial income property being appraised has a potential gross income of $2 million. The effective gross income is $1,640,000, reflecting an 18% vacancy and loss rate. After constructing the operating statement, the appraiser arrives at a figure of $1,305,000 for total expenses. Which calculation represents the NOI for this property? $1,305,000 - $360,000 = $945,000 $1,640,000 - $1,305,000 = $335,000 $1,640,000 - $360,000 = $1,280,000 $2,000,000 - $360,000 = $1,640,000

$1,640,000 - $1,305,000 = $335,000

The income generated on a property is $150,000 a year, and the capitalization rate used is 10%. Based on this, what's the value for the land using the ground rent capitalization approach? $1.5 million $15 million $1 million $500,000

$1.5 million

An appraiser is using the land residual technique to determine an investment property's value. The building is valued at $500,000, and the building cap rate is 10%. The total NOI is $150,000 per year. What's the amount of NOI the land must earn? c $110,000 $50,000 $650,000

$100,000

A residential income property under appraisal has a potential gross income of $200,000. The effective gross income is $170,000, reflecting a 15% vacancy and loss rate. After constructing the operating statement, the appraiser arrives at a figure of $105,000 for total expenses. Which calculation represents the NOI for this property? $170,000 - $105,000 = $65,000 $170,000 - ($170,000 x .15) = $144,500 $200,000 - $105,000 = $95,000 $200,000 - $170,000 = $30,000

$170,000 - $105,000 = $65,000

An appraiser calculates the market rent for an eight-unit apartment building as $1,000 per room per year. Each unit has three rooms. The property owner lives in one of the units. There are no other sources of income. What is the potential gross income for this property? $21,000 $24,000 $5,000 $8,000

$24,000

An appraisal is being done on a city lot. A comparable lot across town sold last month for $60,000, but it has a better view of the lake—approximately $10,000 better than the subject lot. There are no other primary differences between the two lots. If the sales comparison method is used, what would the appraised value of the subject lot be? $40,000 $50,000 $60,000 $70,000

$70,000

A newly constructed home sells for $300,000. The relationship of land to building value in the market is one-to-three. Using the allocation method, we can determine that the site's value is: $100,000 $125,000 $150,000 $75,000

$75,000

Property B, a sales comparable, must be adjusted as follows: Property B has a $10,000 addition that the subject property doesn't have, and a market timing adjustment of 5%, because prices have risen 5% since Property B sold. If Property B's sales price were $100,000, what would its adjusted sales price be? $105,000 $115,000 $90,000 $95,000

$95,000

A 30-unit income-producing property has a sales price of $6 million. Annual gross income is estimated at $500,000. What's the gross income multiplier? 10x 12x 14x 8x

12x

ENERGY STAR®-qualified homes are rated ______ more energy efficient when compared to homes built before 2004. 15% 25% 30% 5%

15%

Houses should be built a minimum of ______ feet away from existing, mature trees. 10 12 20 Six

20

According to the EPA, at what level does radon become a health concern requiring mitigation? .04 picocuries per liter of air 1.4 picocuries per liter of air 2.4 picocuries per liter of air 4.0 picocuries per liter of air

4.0 picocuries per liter of air

How large is a section used in the rectangular government survey system? 640 acres 640 miles 640 square feet One acre

640 acres

For which of the following purchase-related appraisals must the Appraiser Independence Requirements be followed? A conventional loan on a four-unit residential property An FHA loan on any property where the loan-to-value ratio is more than 80% A VA loan on a two-unit residential property The all-cash purchase of a single-family home

A conventional loan on a four-unit residential property

What is a plat map? A detailed depiction of air lots above the land A detailed map of a subdivision that includes boundaries, measurements, and distances between points A map showing all of the benchmarks located in the U.S. A map used by tax assessors when determining the value of a property

A detailed map of a subdivision that includes boundaries, measurements, and distances between points

Although you've told her that the value of a modular home is basically the same as a site-built one and that the quality may even be better, Sandy absolutely refuses to buy a modular home. What tell-tale sign of a modular home should you look for during showings? A HUD code label affixed to the exterior siding A label installed in the cabinet underneath the kitchen sink A Modular Home label attached to the interior of the front door A steel chassis underneath the home

A label installed in the cabinet underneath the kitchen sink

When stating the problem, which of the following does the appraiser need to identify the subject property? A legal description and mailing address The date of the value estimate The interest to be appraised The name of the client

A legal description and mailing address

When Shauna looked at the legal description of the property she was interested in purchasing, she read the following: "Beginning at the corner of State Route 61 and Hallowell Road, north for 314 feet, then southwest for 193 feet." In this description, what does "north for 314 feet" represent? A benchmark A bound A mete A monument

A mete

What is gross rent multiplier? A method to analyze the potential value of smaller residential investment properties A number that helps set the list price of an investment property A process to estimate the income a large investment property will produce A way to determine the value of commercial properties

A method to analyze the potential value of smaller residential investment properties

What is a principal meridian? An east-west line used as a reference point in the rectangular government survey system A north-south line used as a reference point in the rectangular government survey system The center-most section identified in the rectangular government survey system The center-most township identified in the rectangular government survey system

A north-south line used as a reference point in the rectangular government survey system

Which of the following best describes vacancy and collection losses? A percentage of effective gross income based on the market, the property, and the appraiser's judgment A percentage of net operating income based on historical records for the property A percentage of net operating income based on market projections A percentage of potential gross income based on the market, the property, and the appraiser's judgment

A percentage of potential gross income based on the market, the property, and the appraiser's judgment

The Simpsons are buying a five-acre tract that has always been part of a larger parcel. When the owners of the large acreage decided to subdivide it, they needed to have a legal description created for the five-acre lot. What was used as the starting point for creating that legal description? A benchmark A plat map A survey Metes

A survey

Susan is positively obsessed with tea. She wants to be able to have a hot cup of tea at a moment's notice, but doesn't want yet another clunky appliance crowding her kitchen counter. What could she install to solve this dilemma? A larger gas-powered hot water heater in the basement A new burner on her stove An outlet for her new electric kettle A tankless water heater

A tankless water heater

The ______ of land valuation is sometimes used when there's little comparable sales data available and large parcels of land are involved. Abstraction method Cost analysis Extrapolation method Sales comparison

Abstraction method

To determine property value with the cost approach, the appraiser subtracts the ______ from the reproduction/replacement cost and then adds the site value. Accrued depreciation Capitalized income Comparables from two other properties Estimated property taxes

Accrued depreciation

The accuracy of the market extraction method depends on an accurate reproduction cost new estimate for subject property improvements and ______. Actual comparable sales of both improved properties and vacant sites Actual construction and deprecation costs for the comparable properties A current sales price for the subject property An accurate estimation of the subject property's remaining economic life

Actual comparable sales of both improved properties and vacant sites

In what part of a narrative appraisal report would you expect to find a glossary of terms, a flood hazard map, and qualifications of appraiser and company profile? Addendum Cover letter Overview and summary Value conclusions

Addendum

Which of these items could indicate a potential flaw in an appraisal report? Adjustments to comparables use a percentage instead of a dollar amount Adjustments to condition on all comparables is listed as $10,000 Some adjustments to comparables are shown as negative while others are positive Street address of subject property has a spelling error

Adjustments to condition on all comparables is listed as $10,000

In the fourth step of the market extraction method, an appraiser divides the overall depreciation rate by the ______ to determine an annual depreciation rate. Age of the comparable property's improvements Age of the subject property's improvements Remaining economic life of the subject property Subject property's estimated land value

Age of the comparable property's improvements

Sandra is using the straight-line method to measure depreciation. By what other name is this method known? Age-life Capitalized Value Market Extraction Observed Condition

Age-life

Which of the four methods used to measure depreciation is the easiest? Age-life Capitalized Value Market Extraction Observed Condition

Age-life

With which of the four methods used to measure depreciation does the appraiser compare the structure's effective age at the time it's appraised with the structure's total economic life? Age-life Capitalized value Market extraction Observed condition

Age-life

Real estate licensee Sandy wants to know the median square footage of single-family homes in River Heights so she can compare it to the size of the homes she tends to work with. Which of these would be the population that she is studying? All single-family homes in River Heights All single-family homes in the U.S. The population of River Heights The single-family homes that Sandy works with

All single-family homes in River Heights

A six-unit residential property is being appraised. Four units are occupied by tenants, one unit is empty, and the property owner lives in one unit. How will this affect the appraiser's calculation of potential gross income? All six units will be included in the potential gross income, calculated at the per-room market rent. Only the five units available for occupations will be included in the value for potential gross income. Only the four units currently earning income will be included in the value for potential gross income. Only the rent from the five occupied units will be used to calculate the per-room market rent that potential gross income is derived from.

All six units will be included in the potential gross income, calculated at the per-room market rent.

The ______ method provides a broad indicator of market value and works best for new construction. Allocation Cost analysis Extrapolation Sales comparison

Allocation

Larry is an appraiser who wants to get a general idea of the value of land for a home. He knows there's a one-to-four relationship between land values and building values in the area. He's using this relationship to calculate the approximate market value of the land. What method is he using? Allocation method Cost analysis Extrapolation method Sales comparison

Allocation method

Joe is finally remodeling his parents' home from the late 1960s and, to his mother's delight, it's time to install a new washer and dryer. As he is hooking up the new machines, what type of wiring is he likely to encounter? Aluminum Copper Gold Silver

Aluminum - Aluminum wiring is used where the current is heaviest—often where large appliances are plugged in. Houses built between 1965 and 1972 also utilized aluminum branch circuit wiring.

The accuracy of the market extraction method depends on whether there are actually comparable sales of both improved properties and vacant sites and ______. A current sales price for the subject property An accurate estimation of the subject property's remaining economic life An accurate reproduction cost new estimate for subject property improvements An accurate reproduction cost new estimate for the comparable properties

An accurate reproduction cost new estimate for subject property improvements

What is a base line, as used in the rectangular government survey system? An east-west line used as a reference point A north-south line used as a reference point The center-most section The center-most township

An east-west line used as a reference point

What's a fixed annual return on an investment? Annuity Bonus Dividend Interest

Annuity

Which method of yield capitalization simplifies the discounting process through the use of published financial tables? Annuity capitalization Direct capitalization Discounted cash flow analysis Residual land capitalization

Annuity capitalization

The value principle of ______ is the basis of the income approach to appraisal. Anticipation Capitalization Competition Substitution

Anticipation

At what point during ownership may a property owner place a restriction on a deed? After owning the property for 10 years or more After owning the property for five years or more Any time Only upon construction, and only by the developer

Any time

For which of these properties would gross income multiplier be calculated? Apartment building with 50 units Condominium building with four units Duplex used as a rental property Single-family, owner-occupied home

Apartment building with 50 units

If Vlad the appraiser runs into a valuation issue that he's not sure how to address, which group will be most likely to provide guidance for him? Appraisal Practices Board Appraisal Qualifications Board Appraisal Standards Board Appraisal Subcommittee

Appraisal Practices Board

The _________ stipulate that an appraiser for a federally related transaction must be licensed in the state where the property is located and also be knowledgeable about the local market. Appraisal Institute performance standards Appraiser Independence Requirements Federal Appraisal Transaction Standards Uniform Requirements for Professional Appraisals

Appraiser Independence Requirements

The intent of the _______________ is to protect several housing-related parties, including investors and home buyers, by establishing requirements for appraisals of certain properties. American Standards of Appraisal Professionals (ASAP) Requirements Appraisal Institute (AI) Requirements Appraiser Independence Requirements (AIR) Federal Standards of Independent Appraisal Practice (FSIAP)

Appraiser Independence Requirements (AIR)

The Appraiser Qualifications Board has set a minimum of 75 hours of appraiser education for which category of appraisers? Appraiser trainee Certified real property appraiser Journeyman real property appraiser Licensed residential real property appraiser

Appraiser trainee

Which of the following is a true statement about how adjustments are made in the sales comparison approach? Adjustments are made to the subject property, not the comparables. Appraisers adjust downward when a comparable is missing a feature found in the subject property. Appraisers adjust upward when a comparable is missing a feature found in the subject property. Only three adjustments per comparable property are allowed; otherwise it's not considered sufficiently similar.

Appraisers adjust upward when a comparable is missing a feature found in the subject property.

Appraisers need general data, including information about the physical characteristics of a market area. Which of the following is a good source for this type of information? Area maps Financial statements Register of Deeds Tax assessor records

Area maps

In older houses built before 1950, which type of electrical system would frequently be found? BX Conduit Greenfield Romex

BX

Which type of framing involves a single system of wall studs run from the foundation through the first and second floors to the ceiling support? Balloon Platform Post-and-beam Sub-form

Balloon

Veronica uses a ______ to show how many homes were sold each quarter of the last year. Bar chart Histogram Pie chart Table

Bar chart

Which of the following statements about the unit-in-place and square-foot methods is true? Both methods are sometimes referred to as the "comparative unit method." Both methods rely on information provided by cost manuals. The square-foot method is more accurate than the unit-in-place method. The square-foot method is more time consuming than the unit-in-place method.

Both methods rely on information provided by cost manuals.

Lenders prefer that appraisers select at least one comparable that is superior and a comparable that is inferior to the subject property. What is this method of selecting comparable properties called? Adjusting Bracketing Encircling Predominant value

Bracketing

Which type of is very durable, corrosion resistant, and can be used for hot-water distribution lines, but idoesn't last as long as copper piping? Aluminum Brass Silver Steel

Brass

The ______ can be used to calculate the occupancy rate and rent required to make a profit on an income property. Break-even ratio Effective income ratio Net income ratio Operating expense ratio

Break-even ratio

What is BTU, which is a measure of how much heat is required to raise the temperature of one pound of water by one degree Fahrenheit, short for? Basic table unit Basic task unit British task unit British thermal unit

British thermal unit

When the land value is known, but the building value is unknown, the ______ technique can be used. Building residual Capital recapture Direct capitalization Land residual

Building residual

How is the adjusted sales price calculated for a comparable property using the sales comparison approach? By adding or subtracting the sum of adjustments made to the subject property By adding or subtracting the sum of the adjustments made on a comparable property By adding the average of the adjustments made on a comparable property By subtracting the average of the adjustments made on a comparable property

By adding or subtracting the sum of the adjustments made on a comparable property

A commercial property with 20 tenants has a potential gross income of $1,575,000. Total operating expenses for the property are $800,000. Vacancy and collection losses are determined to be 15%. How will the appraiser find this property's effective gross income? $1,575,000 ÷ 20 Applying a relevant cap rate By deducting 15% of potential gross income from $1,575,000. By deducting $800,000 from $1,575,000.

By deducting 15% of potential gross income from $1,575,000.

How should the proximity of a comparable property be indicated in the sales comparison grid of the URAR? By distance in kilometers and direction relative to the subject property By distance in kilometers from the subject property By distance in miles and direction relative to the subject property By distance in miles from the subject property

By distance in miles and direction relative to the subject property

How does an appraiser determine site value when using the cost approach method? By looking at previous appraisals for the property By subtracting the value of the improvements By taking a percentage of the seller's asking price By using the sales comparison method

By using the sales comparison method

The return of principal at the end of ownership is known as return of investment or ______. Capitalization Capital recapture Dividend Net operating income

Capital recapture

When investors put money into an investment property, they expect to get back the principal they put in plus interest or profit. What is the name for the return of principal? Capitalization Capital recapture Dividends Net operating income

Capital recapture

Arnie is using the rent loss method to measure depreciation. By what other name is this method known? Age-life Capitalized value Market extraction Observed condition

Capitalized value

The appraiser applies a capitalization rate to an income comparison of similar properties with which of the four methods used to measure depreciation? Age-life Capitalized value Market extraction Observed condition

Capitalized value

Where in a narrative appraisal report does the appraiser state the appraiser's lack of bias or hidden motive, the truthfulness of the report, and that the appraisal was conducted in conformance with the prevailing standards of practice? Addendum Certificate of appraisal Introduction Overview and summary

Certificate of appraisal

The Appraiser Qualifications Board has set a minimum of 200 hours of appraiser education for which category of qualified appraiser? Apprentice real property appraiser Certified general real property appraiser Certified residential real property appraiser Licensed residential real property appraiser

Certified residential real property appraiser - A certified residential real property appraiser must complete 200 hours of appraisal courses and must also have a bachelor's degree or higher.

Which of the following is considered a general factor that influences the value of real estate? Changes in population levels The improvements that are present The quality of construction The sales prices of comparable properties in the area

Changes in population levels

What does the metes and bounds system use to develop a property's legal description? Compass headings and directions Plat references Principal meridians and base lines Townships and sections

Compass headings and directions

The principle of _________ describes how a change in a property affects the overall property value. Anticipation Conformity Contribution Substitution

Contribution

Philip owns land in a state where growing marijuana is illegal. He wants to set up a small marijuana growing operation and export to states where marijuana has been legalized. He asks his attorney about the possibility. "No," his attorney explains. "It's not possible. Although you own the property outright, the right of ______ only allows you to manage the property in ways that are legal in this jurisdiction. Control Disposition Exclusion Possession

Control

Appraisers develop an estimate of market rent for residential properties by ______ and comparing rents across the subject and comparable properties. Calculating a gross income multiplier Calculating a gross rent multiplier Converting monthly contract rent to scheduled rent Converting monthly rental income to annual dollars per room

Converting monthly rental income to annual dollars per room

When working with commercial properties, the appraiser develops an estimate of market rent by ______ and comparing rents across the subject and comparable properties. Converting rental income to annual dollars per square foot Converting rental income to annual per room Using a gross income multiplier Using a gross rent multiplier

Converting rental income to annual dollars per square foot

An appraiser is assigned to appraise a new manufactured home that hasn't yet been placed on the site where it will be attached to a foundation. What approach to appraisal is recommended for this assignment? Cost approach Income approach Personal property approach Sales comparison approach

Cost approach

The ______ measures the cost to reproduce a property, including land acquisition and construction costs. Cost approach Income approach Indirect approach Sales comparison approach

Cost approach

To determine the estimated reproduction cost of a subject building using the index method, the appraiser multiplies the original construction cost by the index factor, which is calculated by dividing the present cost index by the ______. Cost index at time of construction Estimated accrued depreciation Estimated site value Listing price

Cost index at time of construction

Investor Igor has a minimum rate of return he requires from his investment. This is known as the ______. Capital recapture Cost of capital Return of investment Risk tolerance

Cost of capital

______ basically answers the question, "How much could my money have earned if I had put it into a different investment?" Capital recapture Cost of capital Return of investment Return on investment

Cost of capital

To determine the total reproduction cost of a subject building using the unit-in-place method, an appraiser multiplies the ______ by the number of units of that component part in the subject building and then adds them together. Cost per unit of measure of each component part of the subject property's structure Cost per unit of measure of the largest component parts of the subject property's structure Cost per unit of measure of the ten most expensive component parts of the subject property's structure Replacement cost of each component part of the subject property's structure

Cost per unit of measure of each component part of the subject property's structure

Amelia goes to New Orleans for Mardi Gras every year, and she wants the home she's buying to make her feel like she lives there all year long, right down to the detailed iron railings. Which style of home should you show her? Colonial Creole Queen Anne Ranch

Creole

When economically feasible to replace, outdated plumbing fixtures are an example of which type of depreciation? Curable functional obsolescence Curable physical deterioration Incurable functional obsolescence Incurable physical deterioration

Curable functional obsolescence

Items of deferred maintenance, such as peeling paint or leaky faucets, are examples of which type of depreciation? Curable functional obsolescence Curable physical deterioration Incurable functional obsolescence Incurable physical deterioration

Curable physical deterioration

Luke recently moved from a condominium to a cooperative. With a cooperative, his share of mortgage interest and real estate taxes will be ______. Considered as capital gains Deductible on his personal income tax returns Fully refundable to him Not deductible on his personal income tax returns

Deductible on his personal income tax returns

Which federal entity sets the recommendations for R-value of insulation? Department of Energy Department of Housing and Urban Development Department of the Interior Environmental Protection Agency

Department of Energy

When following the process specified by the Uniform Standards of Professional Appraisal Practice, what step does an appraiser take after gathering and analyzing data? Determine highest and best use Estimate value of the land Reconcile values to determine final appraisal value Use three approaches to estimate the value of the property

Determine highest and best use

In the second step of the appraisal process, the appraiser identifies the data needed. What's another term used to describe this step? Determine the scope of work Estimate the land value Gather and analyze the data State the problem

Determine the scope of work

The rate used for vacancy and collection loss rate is ______. Always 25% of the potential gross income A nationwide standard Calculated using statistical methods Determined by the appraiser based on local market conditions

Determined by the appraiser based on local market conditions

Which type of cost included in the quantity survey method has to do with the cost of construction materials and the labor involved in the actual construction? Direct costs Entrepreneurial profit Indirect costs Site costs

Direct costs

Basic property rights include the rights of possession, control, exclusion, enjoyment, and ______. Destruction Disposition Encroachment Reliction

Disposition

For which of these properties would gross rent multiplier be calculated? Apartment building with 50 units Condominium building with 20 units Duplex used as a rental property Single-family, owner-occupied home

Duplex used as a rental property - Remember, rent has four letters. Gross rent multiplier is used for income-producing properties with four or fewer units. Properties with five or more units use gross income multiplier.

Without this easement—usually involving access to a road—the owner requiring the right of passage would be landlocked. Easement appurtenant Easement by necessity Easement by prescription Easement in gross

Easement by necessity

Gene and Alex bought a property that backed up to a neighborhood park. The previous owner mentioned that ever since the park was built eight years ago, the next door neighbor who works at the park has cut through the yard to get to the park rather than going around via the streets, which saves about half a mile. What kind of easement is this? Easement by prescription Easement in gross Express easement Visible easement

Easement by prescription

Eloise is interested in buying a bungalow on the outskirts of the city. Her agent is reviewing the property details and informs her that there are several easements on the property. In particular, the gas company has a right of way because the natural gas line for the neighborhood runs through the back of the lot. What type of easement would this be? Easement appurtenant Easement by necessity Easement by prescription Easement in gross

Easement in gross

The overhang of a roof is called the ______. Eave Gutter Over-roof Rafter

Eave

Which measure of time is the period of time during which a structure can be used for its originally intended purpose? Economic life Effective age Physical life Remaining economic life

Economic life

Kiki is looking at a small apartment complex and trying to determine its age. What's Kiki measuring? Economic life Effective age Physical life Remaining economic life

Effective age

To measure depreciation using the age-life method, the appraiser divides the ______ by the total economic life. Effective age Remaining economic life Reproduction/replacement cost Site value

Effective age

Which measure of time, with regard to depreciation, is the age a structure appears to be? Economic life Effective age Physical life Remaining economic life

Effective age

An appraiser deducts vacancy and collection losses to determine the ______ income of an income property. Effective gross Investment yield Net operating Potential gross

Effective gross

The process of using special paints to prevent lead in older paint from leaching through to the surface and causing potential health hazards is called ______. De-leading Encapsulation Encasement Plaster-painting

Encapsulation

To determine the total reproduction cost new of a subject building using the quantity survey method, the appraiser takes the sum total of the direct and indirect costs and adds them to the ______. Cost index at time of construction Entrepreneurial profit Estimated accrued depreciation Site costs

Entrepreneurial profit - The formula for the quantity survey method is: Direct costs + Indirect costs + Entrepreneurial profit = Total reproduction cost new.

Maxine's lease goes up and down based on the consumer price index. Which of these provisions is included in her lease? Escalator clause Expense stop clause Rental index clause Variable clause

Escalator clause

When following the Uniform Standards of Professional Appraisal Practice process for real estate appraisal, an appraiser will _________ after determining the subject property's highest and best use. Estimate value of the land Gather and analyze data Reconcile values to determine final appraisal value Use three approaches to estimate the value of the property

Estimate value of the land

Which line item in the Cost Approach section in the URAR form is only used if the appraisal is being completed for property that is being purchased through a HUD or VA loan? "As-is" Value of Site Improvements Depreciated Cost of Improvements cIndicated Value By Cost Approach

Estimated Remaining Economic Life

In an air conditioning system, what takes heat from the air and brings it to the refrigerant? Compressor Condenser Evaporator Recycler

Evaporator - In an air conditioning system, the evaporator takes heat from the air and transports it to the refrigerant, resulting in cooler air.

Elvin owns 150 acres of prime hunting land. Every year, he gets requests from private groups that would like to use his land for a day or two during hunting season. He sometimes grants these requests, but this year, he's decided to only use it himself with his friends. Which right in the bundle of rights says that he can say no to these requests? Control Enjoyment Exclusion Possession

Exclusion

When there is a very low loan‐to‐value ratio, or when the financial strength of the borrower is unquestioned, clients often opt for which of the following reports? Appraisal Update and/or Completion Report (Form 1004D) Exterior‐Only Inspection Residential Appraisal Report (Form 2055) Small Residential Income Property Appraisal Report (Form 1025) Uniform Residential Appraisal Report (Form 1004)

Exterior‐Only Inspection Residential Appraisal Report (Form 2055)

Which of the following is part of the eave system? Composites Fascia Framing Shingles

Fascia

ENERGY STAR®-qualified homes have met specific ______ standards. Federal HUD Local State

Federal

Joe gave land to a school, but still wanted to have some control over its use, so a deed was prepared that gave the school title as long as the land is used for educational purposes. What type of interest does the school have? Fee simple conditional Fee simple determinable Fee simple subject to a condition subsequent Legal life estate

Fee simple determinable

Which type of an estate doesn't end automatically when the stated event or condition occurs? Fee simple absolute Fee simple determinable Fee simple subject to a condition subsequent Freehold

Fee simple subject to a condition subsequent

After an appraiser has finished gathering the necessary data from comparables for the subject property, which element of comparison must be applied first? Conditions of sale Financing Location Physical characteristics

Financing

An appraiser considers several factors when selecting comparable properties as part of the sales comparison approach, including whether they are similar in location, size, and features to the subject property. Which of these factors will also be a consideration? Broker's commission Demographics Financing terms Lender used

Financing terms

Which of the elements of comparison must be applied first? Financing terms Location Market conditions Physical characteristics

Financing terms

Foundation walls are constructed on top of which of these items? Footings Girders Joists Slabs

Footings

An appraiser just finished an appraisal for a new client. How long must he retain the work file and the report? For at least five years For at least seven years For at least two years Varies

For at least five years

The income approach to valuation is used ______. For commercial properties only For some single-family houses and two- to four-family units For vacant land only With new construction only

For some single-family houses and two- to four-family units - The income approach is used for single-family houses and for two-to-four family units. Properties with more than four units are considered commercial properties and must be appraised by a certified general appraiser.

Which type of heating system takes cool air and passes it through the heat source using a fan or blower? Boiler Forced air Hot water Steam

Forced air

Which type of appraisal report makes use of pre-printed documents? Form report Letter report Narrative report Printed report

Form report

What are constructed on top of footings? Foundation walls Joists Lally columns Steel girders

Foundation walls

Appraiser Shada notes that the property she's appraising has suffered a decrease in property value due to its outdated design and materials. This is known as _____________. Design obsolescence External obsolescence Functional obsolescence Physical deterioration

Functional obsolescence

When yield capitalization is used, what is a discount rate is applied to? Capital recapture Depreciation Future income The present value

Future income

Kobi, an appraiser, is appraising a single-family home used for a rental. If he wants to use the income approach, he will likely use ______. Cap rate GRM Replacement value Value in situ

GRM

Which roof style features a shallow slope over a steep slope, and is typically seen in barns? Gable Gambrel Hipped Mansard

Gambrel - Gambrel roofs are often used on barns and in Dutch colonial architecture.

An appraiser has been given an appraisal assignment and has completed the first two steps of the appraisal process. What action will the appraiser take next? Determine highest and best use Estimate value of the land Gather and analyze data Use three approaches to estimate the value of the property

Gather and analyze data

Appraiser Sanjay is looking for information at the local chamber of commerce. What type of data is he most likely hoping to find there? Comparable data Construction cost data General data Specific data

General data

Appraiser Victoria is perusing US Census Bureau statistics. What sort of data is she most likely looking for? General data Income data Sales data Specific data

General data

What type of information would an appraiser gather from transit authorities? Environmental data General data Site data Specific data

General data

What types of data are always needed to complete an appraisal? General data on the geographic and economic features and income and expense data from properties similar to the subject General data on the geographic and economic features and specific data on the subject site Specific data on the subject site and cost data on construction of a like property Specific data on the subject site and income data from properties similar to the subject

General data on the geographic and economic features and specific data on the subject site

When a land trust expires, the trustee must either extend the trust term or sell the real estate and ______. Give all of the proceeds to the attorneys involved Give the proceeds to the beneficiary Give the proceeds to the trustor Retain the proceeds

Give the proceeds to the beneficiary

Building codes, zoning laws, and environmental legislation can all influence the value of real property. How do appraisers refer to this type of value influencer? Geographic Governmental Physical Social

Governmental

What's one measure a builder would likely take to improve a site's drainage? Grade the lot Install a moat Install concrete walls Pave the lot

Grade the lot

Which of the following methods of land valuation converts the amount of yearly income a site will produce into a value using a capitalization rate? Abstraction Allocation Ground rent capitalization Subdivision

Ground rent capitalization

Which land valuation method uses the amount of ground rent the land will generate, and then capitalizes that income into a value for the land using a capitalization rate? Abstraction method Allocation method Ground rent capitalization method Land development capitalization method

Ground rent capitalization method

A manufactured home is required to have a ______ affixed to the exterior of each section. Certificate of Modular Construction Data sheet HUD code tag Warning sign

HUD code tag

Billie Silva was just licensed as a broker, and she plans to hang out a shingle and go into business for herself. As a sole proprietor, which of the following business names can she NOT use? Billie Silva Billie Silva Real Estate Happy Homes Realty Wilhelmina Silva Realty

Happy Homes Realty

When appraiser Abe has finished gathering the necessary data from comparables for the subject property, which of the following is true? He may analyze the elements of comparison in any order. He may analyze the elements of comparison in any order, provided he gives the most weight to the comparables' location. He must analyze the elements of comparison in a certain order. He must analyze the elements of comparison in the order in which he gathered them.

He must analyze the elements of comparison in a certain order. - 1. Financing, 2. Conditions of sale, 3. Market conditions, 4. Location, and 5. Physical characteristics.

When appraisers look past how a property is being used to determine a more optimal function, what are they determining? Cost to replace Highest and best use Market value Value in use

Highest and best use

Licensee Ralph wants to show his clients how quickly his listings sell compared to the average time other single-family homes spend on the market. He decides that the best way to show this relationship would be with a ______. Histogram Line graph Pie chart Table

Histogram

When an appraiser determines a property's potential gross income for a property, the ______ provides information about trends that may influence market rent. Comparable rent Economic rent Historical rent National rent

Historical rent

What's another term for the International Codes® established by the International Code Council? B-Codes® Federal Building Codes® I-Codes® National Codes®

I-Codes®

What's the first step an appraiser takes when using the sales comparison approach? Compare properties to the subject property and adjust for differences. Estimate a fair and current market value for the subject property. Identify features of the subject property that are in demand in the market. Select recently sold comparables that are substantially similar to the subject property.

Identify features of the subject property that are in demand in the market.

Jan is an appraiser analyzing a site that's in an earthquake zone. This is considered a(n) ______ of the site. Encroachment Important feature Negative aspect Zoning classification

Important feature

Where would you find the landscaping plans for a home? In the appendix to the blueprint In the blueprint In the building plan In the building specifications

In the building specifications

Which approach to finding value would licensed appraiser Christina probably weigh most heavily when appraising a three-unit rental property? Cost Income Sales comparison Substitution

Income

The appraiser's operating statement states that the accrual basis method of accounting is used. What does this mean? Expenses are classified as fixed or variable. Expenses have been stabilized in relationship to income. Income is recorded when earned, and expenses are recorded when incurred. Income is recorded when received, and expenses are recorded when paid.

Income is recorded when earned, and expenses are recorded when incurred.

An undesirable house design that can only be fixed by knocking down walls and starting from scratch, but would not return value commensurate with that expense is an example of which type of depreciation? Curable functional obsolescence Curable physical deterioration Incurable functional obsolescence Incurable physical deterioration

Incurable functional obsolescence

Extreme damage to the property's foundation, which puts the entire structure in jeopardy, is an example of which type of depreciation? Curable functional obsolescence Curable physical deterioration Incurable functional obsolescence Incurable physical deterioration

Incurable physical deterioration

Axel is using the cost service index method to find the reproduction cost of a structure. By what other name is this method known? Index Quantity survey Square-foot Unit-in-place

Index

Which of the four methods used to find the reproduction cost of a structure is often used by appraisers as a check of the estimated construction costs reached by one of the other methods? Index Quantity survey Square-foot Unit-in-place

Index

With which of the four methods used to find the reproduction cost of a structure does the appraiser apply a factor to the subject building's original cost that represents the costs of construction up to the appraisal date? Index Quantity survey Square-foot Unit-in-place

Index

Which line item in the Cost Approach section in the URAR form is used to capture the appraiser's opinion of value for the property? Depreciated Cost of Improvements Indicated Value By Cost Approach Opinion of Site Value Total Estimate of Cost-New

Indicated Value By Cost Approach

Which of these should tenants keep in mind regarding trade fixtures? Installation and removal should not cause damage to the property. The tenant bears no responsibility for removing trade fixtures. The tenant bears no responsibility when installing trade fixtures. They become property of the landlord once installed.

Installation and removal should not cause damage to the property.

Government regulation of a property that deprives the landowner of the economic value of the property without compensation from the government is called ______. Condemnation Eminent domain Escheat Inverse condemnation

Inverse condemnation

The Johnsons have owned a small restaurant for more than 20 years. It's open for lunch and dinner six days a week, and 80% of its weekday revenue comes from the happy hour drink and appetizer specials. The town in which their restaurant is located recently constructed a new middle school and stripped the liquor license from the Johnsons' restaurant, because it no longer complies with the ordinance to be 500 feet from a school property. The Johnsons have accused the town of _____. Condemnation Eminent domain Escheat Inverse condemnation

Inverse condemnation

A set of tables that appraisers use to calculate an annuity's present value for a number of years at various interest rates are known as ______ annuity tables. HUD's Inwood L. Wood's The Appraisal Institute

Inwood

Janice, who has lived in an apartment for many years, is interested in moving to a cooperative. She submits an application to the cooperative's review board, but her application is rejected. The board ______. Is forbidden from rejecting her if she qualifies financially Is not required to inform her why her application was rejected Must inform her why her application was rejected Must inform the state why the application was rejected

Is not required to inform her why her application was rejected

What's one of the drawbacks of using the allocation method? It doesn't account for differences between properties. It doesn't work well for new construction. It requires a depreciation calculation. It's widely used, but the least accurate.

It doesn't account for differences between properties.

When an investment property has a capitalization rate that's fairly high, which of the following is true? It involves a fair amount of risk. It involves very little risk. It will have a high appraised value. The rate of return on the investment will be high.

It involves a fair amount of risk.

Which of the following statements is true about the allocation method? It provides a broad indicator of market value. It provides an exact value. It's more precise than other methods. It works best for older homes.

It provides a broad indicator of market value.

What's NOT true of an easement appurtenant? It involves adjoining property. It's an encumbrance on the dominant property. It's a permanent right that runs with the land. The dominant property is a neighbor to the servient property.

It's an encumbrance on the dominant property.

Why isn't the cost approach usually used to determine the value of older properties? Appraisers aren't allowed to use the cost approach on structures that are older than 10 years. It's difficult to accurately estimate depreciation with an older property. Lenders and insurance companies don't require it. No one wants to pay to have an older property appraised using the cost approach.

It's difficult to accurately estimate depreciation with an older property.

When conducting an appraisal of lease value, how does the appraiser divide the appraised value? Each party involved in the lease receives an equal share of the value. It's divided according to the parties' interests as attributed in the lease. The lessor is the only party whose interest has value with a lease. The lessor's interest is 40%, the lessee's interest is 30%, and the sub-lessee's interest is 30%.

It's divided according to the parties' interests as attributed in the lease.

What type of window design is similar to window blinds? Casement Jalousie Skylight Storm

Jalousie

______ windows have a similar design to Venetian blinds. Bay Casement Jalousie Sliding

Jalousie

Which form of real property ownership (for owners other than married couples) means there's equal ownership shares with undivided possession rights? Joint tenancy Tenancy by the entirety Tenancy in common Tenancy in severalty

Joint tenancy

Which one of the following statements is true about land trusts? A beneficiary's interest in the land must be conveyed through a deed. Land trusts generally continue for a specified term, such as 10, 20, or 30 years. The identity of the trust owner is made public. The person who establishes the trust (the trustor) is rarely the beneficiary.

Land trusts generally continue for a specified term, such as 10, 20, or 30 years.

Which of these is the best definition of real estate? Everything that's not real property Land, plus all things permanently attached to it naturally or artificially Real property, plus all of the interests, benefits, and rights included in ownership The earth's surface extending downward to the center of the earth and upward to infinity, including permanently attached natural objects

Land, plus all things permanently attached to it naturally or artificially

Which of the following might a builder use to conceal unsightly areas, reduce noise levels, define space, and prevent soil erosion? Foundation Grading Landscaping Paving

Landscaping

What do the letters in LEED certification represent? Lacking in Energy and Efficiency Design Lacking in Environmental Efficiency Design Leadership in Energy and Environmental Design Leadership in Energy Efficiency Design

Leadership in Energy and Environmental Design

Which of these items requires special attention from the appraiser when the subject property is a manufactured home located in a mobile home park? Lease term Method of attachment to the foundation Number of tenants in the mobile home park Quality of construction

Lease term - Quality of construction and neighborhood are typically evaluated for any residential appraisal, but lease term will affect the value of a manufactured home sited in a mobile home park.

A lessee holds a ______ interest. Leased fee Leasehold estate Lease value Sandwich

Leasehold estate

Physical possibility, financial feasibility, maximum profitability, and ______ are all considerations when determining highest and best use. Ability to be leveraged Legal permissibility Liquidity Rebuilding cost

Legal permissibility

The ______ category of appraiser licensure requires a minimum of 1,000 hours of applicable experience. Appraiser trainee Certified general real property appraiser Certified residential real property appraiser Licensed residential real property appraiser

Licensed residential real property appraiser

At which level of government are building codes generally enforced? Board Federal Local State

Local

What determines a plumbing system's structure and the materials used to construct it? Local building codes National building codes Plumbers' union State building codes

Local building codes

If an appraiser were using three comparables, which factor would weigh most heavily? Location Physical condition of property Sales price Time on market

Location

Which of the following does an appraiser take into consideration when determining site value? Location Location, amenities, and improvements Location and amenities Location and improvements

Location and amenities

Harmony is looking at the legal description on her purchase contract. It mentions that the plat of her property is recorded in Map Book 12, page 14, at the county courthouse. What type of legal description is this? Lot and block Metes and bounds Monument and benchmark Rectangular government survey

Lot and block

Which type of legal description do courts prefer? Benchmark Lot and block Metes and bounds Rectangular government survey

Lot and block

When cold water enters a gas water heater, the gas turns on. When the water heats up, the thermostat inside the heater ______. Beeps to alert the user that the water's ready Increases the flame Lowers the flame Turns off

Lowers the flame

Lucas, Ivan, Chad, and Trace own a property as joint tenants. After a few years, Ivan sells his interest to Tom (with permission from Lucas, Chad, and Trace). Chad dies intestate but is survived by a wife, Amy. Trace also then passes away but wills his property to Monique. Who owns the property after Trace's death? Lucas Lucas and Tom Lucas, Monique, and Amy Lucas, Tom, Amy, and Monique

Lucas and Tom

When it comes to environmental concerns with a site, which of the following describes the appraiser's responsibility? Conduct testing for every possible environmental concern Halt the appraisal immediately and call out experts to inspect the premises Investigate and identify every possible environmental condition that exists on the site Make note of conditions which require further investigation or testing on the appraisal report

Make note of conditions which require further investigation or testing on the appraisal report

A wall that runs through the center of a home and is thicker than normal would indicate which type of construction? Manufactured Mobile Modular Site-built

Manufactured

A steel chassis, tongue, axles, and wheels are telltale signs of what type of home? Manufactured Modified Modular Site-built

Manufactured - Because manufactured homes are designed to be transportable to more than one location, they have a wood or steel chassis permanently attached to them (although the wheels may have been removed).

Abel is using the sales comparison method to measure depreciation. By what other name is this method known? Age-life Capitalized value Market extraction Observed condition

Market extraction

Sinead is using the market comparison method to measure depreciation. By what other name is this method known? Age-life Capitalized value Market extraction Observed condition

Market extraction

With which of the four methods used to measure depreciation does the appraiser use comparable properties' sales prices to figure out the value of a depreciated item? Age-life Capitalized value Market extraction Observed condition

Market extraction

What's the price a property would be expected to sell for after suitable exposure to the market, assuming no exceptional factors are influencing the parties' decisions or financing availability? Insured value Investment value Market value Mortgage value

Market value

When real estate licensee Bridget reviews data for the square footage of all single-family homes in Castle Place, she analyzes it using a ______ because it provides a single number that represents all of the houses in the sample. Measure of central tendency Standard deviation Standard tendency Summed variation

Measure of central tendency

The mean, median, and mode are called ______. Central representations Measures of average tendency Measures of central tendency Measures of dispersion

Measures of central tendency

"Beginning at a stake and stones about 30 feet from the center of the brook that runs across the road Southwesterly from the dwelling house of the late Henry Nelson ..." is an example of what type of legal description? Benchmark Lot and block Metes and bounds Rectangular

Metes and bounds

Morty, a land surveyor, was called out to survey a property. After doing some research, he located the legal description for the property in question. Now, if he could just find the point of beginning located at the iron pin on the southerly line of state route 117, 30 feet east of the oak tree next to Bear Creek. What type of legal description is Morty working with? Benchmark Datum Metes and bounds Rectangular government survey

Metes and bounds

Sunshine Surveyors Inc. created a lot and block survey for a new residential development, Happy Acres. The first thing the surveyor did when he surveyed the new neighborhood was to reference what type of description? Map Metes and bounds description Monument Plat book

Metes and bounds description

The MARIA acronym helps to identify the five tests of a fixture. Which of the following tests refers to how and whether the item is attached to the property? Adaptability of the item to the land's use Agreement of the parties Intention in placing item on land Method of annexation

Method of annexation

______ is the lowest pressure at which plumbing will still function. Applied pressure Ideal pressure Maximum pressure Minimum pressure

Minimum pressure

Which REITs make money by incurring short-term debt to acquire longer-term mortgage securities, earning the spread between the two rates? Equity REITs Mortgage REITs Short-term/long-term REITS Tax-deferred REITs

Mortgage REITs

Which types of REITs don't buy properties but instead invest in real estate debt? Equity REITs Long-term REITs Mortgage REITs Short-term REITs

Mortgage REITs

How is net operating income used in an income-based approach to appraisal? NOI is deducted from potential gross income to find effective gross income. NOI is divided by a cap rate to find estimated property value. NOI is divided by potential gross income to find a capitalization rate. Operating expenses are deducted from NOI to find effective gross income.

NOI is divided by a cap rate to find estimated property value.

In which of the following situations can the state use its power of escheat? Hannah passed away with no children and no debt, other than $83,000 left on her mortgage. Maury died, and his three children are upset because his estate isn't large enough to settle all of his debts. Nadine died with no heirs and no debt. Sam died with no will, and his son lives overseas.

Nadine died with no heirs and no debt.

Tim, an appraiser, is using the cost approach to determine property value. Which of the following property types is Tim most likely appraising? Condominium Cooperative Newly built commercial property Single-family residence built in the 1980s

Newly built commercial property

Appraiser Johann is appraising a single-family home for an FHA loan. Must the lender who hired him comply with the Appraiser Independence Requirements (AIR)? No, because FHA loans and lenders don't have to comply with AIR. No, because these requirements don't apply to lenders; they only apply to appraisers and real estate professionals. Yes, because AIR applies to all single-family homes where a loan is involved. Yes, because all lenders must comply with AIR for all single-family homes or properties with up to four dwelling units.

No, because FHA loans and lenders don't have to comply with AIR.

What source of information would an appraiser rely on to determine the dimensions and area of a subject property? City hall MLS Observation of the site Plats

Observation of the site

Iris is using the breakdown method to measure depreciation. By what other name is this method known? Age-life Capitalized Value Market Extraction Observed Condition

Observed Condition

With which of the four methods used to measure depreciation does the appraiser estimate the property's loss in value for both curable and incurable items of depreciation? Age-life Capitalized value Market extraction Observed condition

Observed condition

Which two operating statement ratios will equal one when added together? Net income ratio and breakeven ratio Operating expense ratio and breakeven ratio Operating expense ratio and net income ratio Potential income ratio and effective income ratio

Operating expense ratio and net income ratio - The operating expense ratio and the net income ratio are reciprocals of each other, so they will equal one when added together.

Which of the following formulas represent the operating expense ratio? Net operating income ÷ effective gross income (Operating expenses + debt service) ÷ effective gross income Operating expenses ÷ effective gross income Operating expenses ÷ potential gross income

Operating expenses ÷ effective gross income

Which line item in the Cost Approach section in the URAR form is used to capture the appraiser's total cost estimate for the site alone? Depreciated Cost of Improvements Indicated Value By Cost Approach Opinion of Site Value Total Estimate of Cost-New

Opinion of Site Value - The appraiser's total cost estimate for the site is entered on the Opinion of Site Value line. This value is determined using the sales comparison approach and is added to the cost-new value, less the accrued depreciation, to arrive at the Depreciated Cost of Improvements.

To determine the estimated reproduction cost of a subject building using the index method, the appraiser takes the index factor and multiples it by the ______. Cost index at time of construction Estimated accrued depreciation Original construction cost Present cost index

Original construction cost

A(n) ______ can prevent the mean of a set of values from being a valid representation of the group. Central tendency Measure of dispersion Normal distribution Outlier

Outlier

A life estate can best be described as ______. An estate for a limited time An estate for a specified time Ownership for an undetermined length of time Ownership, possession, and control for someone's lifetime

Ownership, possession, and control for someone's lifetime

Sam wants his front door to have frosted green glass panes. What type of door is he looking for? Flush Panel Sliding glass Storm

Panel - Panel doors allow for panes of glass to be installed between the wood or metal framing.

What type of adjustment will an appraiser make to show an overall effect on market value of a factor such as a change in market condition? Dollar adjustment Gross adjustment Net adjustment Percentage adjustment

Percentage adjustment

When adjusting for differences between the comparable and subject properties, which type of adjustments should an appraiser make first? Dollar adjustments Gross adjustments Net adjustments Percentage adjustments

Percentage adjustments

Beneficiary interest in land that's part of a land trust is considered ______. Personal property Protected from creditors Real property Subject to partition

Personal property

Lester is interested in a two-bedroom unit in a cooperative. A residence in a cooperative, unlike a condominium, is legally considered ______. Borrowed property Personal property Real property Temporary property

Personal property

The presence of neighborhood amenities, such as shopping and schools, is an example of which real estate value influencer? Economic Governmental Physical Social

Physical

When rating the overall condition of the property, appraisers need to consider the types of depreciation. Which type of depreciation is defined as, "A decrease in property value due to the effects of ordinary wear and tear on the condition of the building"? Economic obsolescence External obsolescence Functional obsolescence Physical deterioration

Physical deterioration

Rhonda's looking at a structure and trying to determine how much longer the building can be expected to remain standing. What's Rhonda measuring? Economic life Effective age Physical life Remaining economic life

Physical life

A young professional couple from out of state have been referred to you. The couple knows nothing about the area and would like some demographic information before they buy a home in the area. Basically, they'd like a breakdown by age of the population. Which of the following would be the best tool to present this information? Histogram Line graph Pie chart Table

Pie chart

Which of the following could indicate an underground storage tank is present? Discolored soil Newer residential development Pipe or vent sticking out of the ground Steep drop off on the property

Pipe or vent sticking out of the ground

The slope of a roof is called the ______. Angle Downside Pitch Vertical

Pitch

A surveyor created a lot and block survey for a new residential development. The first thing she did when she surveyed the new neighborhood was to reference a metes and bounds land description. From there, she divided the land into numbered lots and blocks. This output is known as a _______. Benchmark Monument Plat map Rectangular survey

Plat map

What does the lot and block system use to develop a property's legal description? Compass headings and directions Plat references Principal meridians and base lines Townships and sections

Plat references

Which type of framing is most commonly used in housing? Balloon Platform Post-and-beam Sub-form

Platform

When using the income approach, an appraiser determines the ______ using market rents and does not deduct for losses or expenses. Effective gross income Market income Net operating income Potential gross income

Potential gross income

Foundation walls are often constructed out of which of the following? Gypsum, concrete, or brick Poured concrete, bricks, or concrete blocks Poured concrete or steel girders Wood, steel, or brick

Poured concrete, bricks, or concrete blocks

To determine the estimated reproduction cost of a subject building using the index method, the appraiser multiplies the original construction cost by the index factor, which is calculated by dividing the ______ by the cost index at time of construction. Estimated accrued depreciation Listing price Present cost index Site value

Present cost index

Which of the following is a piece of specific data an appraiser may gather? Cost of living Employment figures Population size Property lot size

Property lot size

Which house style is characterized by flat roofs, earth-toned stucco walls, and Native American and Spanish Colonial influences? Colonial Prairie Pueblo Ranch

Pueblo

Which term means "for another's life"? Fee simple Pur autre vie Remainderman Reversion

Pur autre vie

Which of the four methods used to find a structure's reproduction cost is considered the most comprehensive and accurate? Index Quantity survey Square-foot Unit-in-place

Quantity survey

Which of the four methods used to find the reproduction cost of a structure requires the appraiser to know every facet of building construction? Index Quantity survey Square-foot Unit-in-place

Quantity survey

With which of the four methods used to find the reproduction cost of a structure does the appraiser add the itemized costs—including direct and indirect expenses—of building or installing all of a new structure's component parts? Index Quantity survey Square-foot Unit-in-place

Quantity survey

What rating is given to insulation to describe its effectiveness? I-rating I-value R-rating R-value

R-value

Which type of roof features a ridge beam or girder that forms the top line of the roof? Flashing roof Rafter roof Roof truss Stucco roof

Rafter roof

Which of the following is a framing member? Footings Rafters Soffits Sticks

Rafters

Sandy is looking at the median square footage of all single-family homes in River Heights so she can compare it to the size of the homes she tends to work with. Luckily for her, the state REALTOR® association provides statistics like this, so she's able to find the data about square footage taken from a _________ of single-family homes. Pool Random sample Selection Volunteer sample

Random sample - Statistical samples are only valid if they are randomly selected from the total population, which provides the greatest chance that the sample represents the population as a whole.

Which legal description method is regulated by the U.S. Department of the Interior's Bureau of Land Management? Governmental Lot and block Metes and bounds Rectangular government survey

Rectangular government survey

When property values start increasing as renewal occurs in the neighborhood, what stage of the neighborhood life cycle is occurring? Decline Equilibrium Growth Rejuvenation

Rejuvenation

In terms of an appraisal, which of the four measures of time is the most important? Economic life Effective age Physical life Remaining economic life

Remaining economic life

Which measure of time, with regard to depreciation, is the period of time beginning from the date of the appraisal and extending for as long as the property can remain useful for its original purpose? Economic life Effective age Physical life Remaining economic life

Remaining economic life

What's the final step in the appraisal process defined by the Uniform Standards of Professional Appraisal Practice? Determine highest and best use Reconcile values Report appraisal value Use three approaches to estimate the value of the property

Report appraisal value

Edwin is appraising a newer building using the cost approach method. Because it will be fairly easy for him to conduct a cost analysis with similar structures of the same or nearly the same age, Edwin is going to calculate his construction cost-new estimate using _______. Accrued depreciation Only his professional judgment Replacement costs Reproduction costs

Reproduction costs

To determine property value with the cost approach, the appraiser subtracts the accrued depreciation from the ______ and then adds the site value. Capitalized income Comparables from two other properties Listing price Reproduction/replacement cost

Reproduction/replacement cost

When reconstructing an operating statement, what's the term for the amount an appraiser records to cover the cost of capital improvements to the property, such as roof replacement? Economic asset replacement Future reserves Reserves for replacement Scheduled replacements

Reserves for replacement

Interest earned on an investment is also known as ______. Capitalization Capital recapture Return of investment Return on investment

Return on investment

What's another name for the profit made from an investment, which is usually expressed as an interest rate or discount rate? Capitalization rate Capital recapture Dividend Return on investment

Return on investment

What term describes the value of an income property at resale or at the end of a lease period? Capitalization Cash flow Reversion Yield

Reversion

What type of interest involves the property ownership going back to the original owner at the end of the life estate? Dual ownership Pur autre vie Remainder interest Reversionary interest

Reversionary interest

Gabrielle is an appraiser. The property owner has indicated that the home she is appraising has central air conditioning. When she does a visual inspection of the property, in which of the following areas would she most likely find the central air unit, if it exists? In a closet In a detached garage On the roof Right outside the home

Right outside the home

In which field of the sales comparison grid would you find an indication of an arm's length sale? Data source Date of sale Sale or financing concessions Sales price

Sale or financing concessions

Who or which of the following uses an appraisal to determine what the selling price should be? Buyer Financial institution Insurance company Seller

Seller

A real estate appraisal may be used to ______. Detect structural defects in a building Determine the fee to be paid to the real estate agents at closing Find potential issues with the title to the property Set a value for property that's part of an estate

Set a value for property that's part of an estate

Mary is driving through a neighborhood where she's considering moving. She loves these homes because their exterior is a combination of stone and stucco. What part of the wall is she looking at? Fascia Flashing Sheathing Siding

Siding

Once the installation of a modular home is complete, it's virtually indistinguishable from a ______. Log cabin Manufactured home Mobile home Site-built home

Site-built home

Positioning a house on a lot in order to take advantage of a view is called ______. Dedication Infrastructure Paying the piper Siting

Siting

When valuing property, a site analysis includes identification of the property and its highest and best use, along with a description of important features, such as _______. Microclimate Ownership history Reconstruction value Size and shape

Size and shape

Which type of site provides better natural drainage? Hilly site Level site Paved site Sloped site

Sloped site

Changes in demographics and population growth are examples of which type of real estate value influencer? Economic Geographic Physical Social

Social

Radon is found in well water and _______. Ceiling tiles Insulation Plastics Soil

Soil

Nikki is using the comparative unit method to find the reproduction cost of a structure. By what other name is this method known? Index Quantity survey Square-foot Unit-in-place

Square-foot

A ______ system uses a boiler to produce steam to heat a home. Forced air Hot water Radiant Steam

Steam

______ windows fit on either the inside or outside of the main window. Bay Jalousie Sliding Storm

Storm

A ______ is a vertical component used in wall framing. Beam Joist Lally column Stud

Stud

Lewis and Elliot started a real estate investment business together. After much discussion with their attorney, they decided to incorporate, but in such a way that they are treated like a partnership and don't have to pay corporate taxes. What form of business do they have? Double proprietorship Limited liability partnership Subchapter C corporation Subchapter S corporation

Subchapter S corporation

This equation, "Value of land = Anticipated sales of finished lots - development costs," is a simplified version of one used with the ______ method of land valuation. Abstraction Allocation Sales comparison Subdivision

Subdivision

When a large tract of land is purchased and prepared for development, and then split into parcels, the value of each lot as a residential building site must be determined. The method used to value each individual parcel is known as the ______ method. Allocation Land abstraction development Sales comparison Subdivision development

Subdivision development

On which principle of value is the sales comparison approach based? Anticipation Competition Conformity Substitution

Substitution

When two properties in a neighborhood are essentially identical, they're likely to sell for similar prices. This is an example of the principle of _______. Anticipation Conformity Contribution Substitution

Substitution - this is the basis of the sales comparison approach

In the income capitalization approach to appraisal, NOI is found by ______. Reconstructing the operating statement Subtracting operating expenses from property value Subtracting total operating expenses from effective gross income Subtracting vacancy and collection losses from effective gross income

Subtracting total operating expenses from effective gross income

Eva, Stella, and Lynn own a vacation home two blocks from the beach. Sadly, Stella passed away this winter, and so when summer arrives Eva and Lynn will be sharing the home with Stella's nephew Drew, to whom Stella willed her share of the property. What type of ownership is this? Estate in severalty Joint tenancy Tenancy by the entirety Tenancy in common

Tenancy in common

Which of these ownership types has the potential to complicate a property's appraisal value? Estate in severalty Fee simple Tenancy by the entirety Tenancy in common

Tenancy in common

In which form of co-ownership is a person's ownership inheritable? Joint tenancy Tenancy by the entirety Tenancy in common Tenancy in severalty

Tenancy in common - With tenancy in common, if one owner dies, that person's ownership is inheritable. It doesn't automatically pass to the other owners as it would with joint tenancy.

Which one of the following types of ownership termination allows each tenant to have a specific, divided portion (partition) of the property exclusively? Termination by division Termination of co-ownership by partition Termination of estate in severalty Termination of joint tenancies

Termination of co-ownership by partition

When constructing a foundation, besides a vapor barrier, what might local building codes require? Bricks Poured concrete instead of blocks Soil Termiticide

Termiticide - While poured concrete, blocks, and bricks are options for foundation walls, local building codes often require vapor barriers and termiticides.

The umbrella organization that's authorized by Congress to develop and oversee the standards and requirements real estate appraisers must follow is called ______. Appraisal Qualifications Board Appraisal Subcommittee FIRREA The Appraisal Foundation

The Appraisal Foundation

Which of the following entities is responsible for establishing minimum licensing qualifications for appraisers? Appraisal Practices Board (APB) The Appraisal Qualifications Board (AQB) The Appraisal Standards Board (ASB) The Uniform Standards of Professional Appraisal Practice (USPAP) Board

The Appraisal Qualifications Board (AQB)

Frank is a successful real estate developer who has just gotten started on his latest townhome development. What regulations does he need to make sure his electricians follow when installing the homes' wiring? The Aluminum Worker's Regimen The Greenfield Conduction Standards The National Electric Code The Volt and Amp Society Guidelines

The National Electric Code

Which organization issues the LEED certification? ENERGY STAR® The Environmental Protection Agency The U.S. Department of Energy The U.S. Green Building Council

The U.S. Green Building Council

What numbers does the appraiser reconcile to determine the indicated value by the sales comparison approach for the subject property in the URAR? The adjusted sales prices of the comparable properties The contracted sales prices of the comparable properties The indicated value by the income approach The opinion of site value for the comparable properties

The adjusted sales prices of the comparable properties

When the ground rent capitalization method is used, a capitalization rate is applied to ______ in order to arrive at a value. Comparable sales prices The amount of land being leased The amount of yearly income The yearly income of comparable properties

The amount of yearly income

The Appraiser Independence Requirements protect which party or parties? The appraiser The appraiser and the lender The appraiser, the lender, and the consumer The consumer

The appraiser, the lender, and the consumer

Appraiser Chuck writes "s01/15;Unk" in the "date of sale" field in the sales comparison grid of the URAR. What does this indicate? The comp's contract fell through in January 2015 for an unknown reason. The comp's listing agreement expired in January 2015 for an unknown reason. The comp's settlement date is unknown and the contract date is January 2015. The comp was settled in January 2015 and the contract date is unknown.

The comp was settled in January 2015 and the contract date is unknown.

Shira bought a condominium in a planned unit development. The development has a small playground, tennis and basketball courts, and a putting green. Who owns these recreational facilities? The businesses located in the PUD The condo owners The development investors The PUD developer

The condo owners

Using the square-foot method, once an appraiser has calculated the cost per square foot for the living area of the subject building, what other factors go in to finding the reproduction cost? None; the cost per square foot of the subject building's living area equals the reproduction cost The cost of the non-living areas and improvements of the subject property The cost per square foot of the living areas of three comparable properties The estimated accrued depreciation of the subject building

The cost of the non-living areas and improvements of the subject property

For most residential properties, the highest and best use of the property is relatively obvious. What is it? The current use The estimated use The former use The potential use

The current use

Whether an appraiser is appraising a condo, a co-op, a time share, or a unit in a PUD, which of the following must always be considered? The fees property owners are charged by the association The length of ownership The number of shares the owner has in the corporation that holds the ownership interests in the real estate The number of shares the owner owns in the association

The fees property owners are charged by the association

You are viewing a home with a buyer client. When you open one of the bedroom closets, you find a piece of paper with some information stuck to the inside of the door. What have you most likely discovered? The home is a manufactured home and this is the data plate. The home is a mobile home and this is the HUD code tag. The home is a mobile home constructed prior to 1976. The home is a modular home and this is the certification label

The home is a manufactured home and this is the data plate. - Manufactured homes leave the factory with a data plate that provides information about the manufacturer and the zone for which it was constructed.

Why does a property owned by four people as joint tenants have the potential to be appraised lower than the same property owned by one person as an estate in severalty? The joint tenants could each sell their individual portions of the property, making it less marketable. The joint tenants must all agree to sell before any part of the property can be transferred. The property can only be sold to four people who also want to own as joint tenants, making it less marketable. Transactions involving joint tenants are less marketable because real estate agents tend to avoid them.

The joint tenants could each sell their individual portions of the property, making it less marketable.

Which of the following land valuation methods is more involved than other methods, because it requires forecasting the sales rate for the properties, as well as determining the total income they will produce? The allocation method The income approach method The land development method The sales comparison method

The land development method

An expense stop clause in a lease is considered a benefit for ______. The appraiser The lessee The lessor The sublessee only

The lessor - Because an expense stop clause allows a lessor to control operating costs, it's considered a benefit to the lessor when determining lease interest values.

What's the definition of front footage? A piece of land that abuts the ocean The number of linear feet that the property has on the street The size of a three-dimensional shape The size of a two-dimensional shape

The number of linear feet that the property has on the street

How is the grid that's used in the rectangular government survey system laid out? The numbers are read left to right. The numbers are read right to left. The numbers start in the center and spiral out clockwise. The numbers start in the northeastern corner and follow a zigzag pattern.

The numbers start in the northeastern corner and follow a zigzag pattern.

An appraiser wants to make sure that the values she is using for operating expenses and net income are valid by comparing them with similar properties. What tool can she use to do this effectively? The breakeven ratio The effective income ratio The net income ratio The operating expense ratio

The operating expense ratio

Where's the load carried when a roof truss system is in place? Spread evenly over the attic floor The center line The inner walls The outer walls

The outer walls

The capitalization process uses a capitalization rate, which is based on what? Estimates of future sales Last year's sales The performance of comparable properties The stock market

The performance of comparable properties

What dictates a leasehold estate's value? The length of the lease, and whether or not it's renewable The relationship between scheduled rent and the market rent The relationship between the lessee and lessor The wishes of the lessor, who owns the property

The relationship between scheduled rent and the market rent

Your clients are interested in purchasing a piece of land that has several acres of wetlands. Because of this, ______. The site cannot be developed The site comes with added regulatory baggage and potential costs The site has significantly less overall value The site will have a higher appraisal value

The site comes with added regulatory baggage and potential costs

When looking at a rectangular government survey system map, where would Section 36 be located? The exact center of the township The northeastern-most section of the township The southeastern-most section of the township The southwestern-most section of the township

The southeastern-most section of the township - The numbers on the grid start with Section 1 in the northeastern corner of the township, then follow a zigzag pattern, with Section 36 in the southeastern-most corner.

Alice is a real estate licensee who is really steamed about a recent transaction that fell apart due to the property not appraising at the value she expected. She feels it's due to an unethical appraiser who didn't do a quality job, and wants to lodge a complaint. Where should Alice register her complaint about this appraiser? NAR The Appraisal Foundation The appraiser's employer The state where the appraiser is licensed

The state where the appraiser is licensed

Which of the following statements regarding the annuity method is true? Annuity tables assume the investment recapture rate will be greatest in the first few years of the investment term. Annuity tables assume the same investment recapture rate for every year of the investment. The straight-line method of recapture assumes the investment recapture rate will be greater in the beginning of the investment than in its last years. The straight-line method of recapture assumes the same recapture rate for every year of the investment.

The straight-line method of recapture assumes the same recapture rate for every year of the investment.

Charlie the appraiser reviews specific influencers of value for a property, such as ______. Interest rates Local amenities The threat of damaging winds in the area The value of comparables in the area

The value of comparables in the area

John is an appraiser valuing a piece of property that consists of 20 acres of land and several buildings. He'll be using the land residual technique. Which of the following is a true statement? Neither the value of the land or the buildings is known. The value of the buildings is known. The value of the land is known. This technique will calculate a typical rate of return for the investment.

The value of the buildings is known.

Limited liability companies and limited liability partnerships are favorable forms of business because ______. Owners of the LLC or LLP are personally liable for LLC/LLP obligations. They aren't taxed as partnerships. They don't require a general partner. They're considered temporary and can be quickly dissolved.

They don't require a general partner.

Why does an appraiser convert the rent for a subject property to annual dollars per square foot? To account for building space that's unusable To account for vacancy and collection losses To compare income from office buildings to income from retail or heavy industrial buildings To effectively compare rents from different buildings using a common unit of measurement

To effectively compare rents from different buildings using a common unit of measurement

The National Association of REALTORS® provides a variety of reports and statistics on its website. What can you use this information for? Nothing, it's just interesting information To find data that you can use to the disadvantage of the competition To impress potential clients with how much you know about real estate To share with your clients, or to promote your business

To share with your clients, or to promote your business

To measure depreciation using the age-life method, the appraiser divides the effective age by the ______. Remaining economic life Reproduction/replacement cost Site value Total economic life

Total economic life

How is the gross adjustment calculated in the sales comparison approach? Adding up the positive amounts and subtracting the negative amounts of the adjustments Averaging the amounts of the adjustments, ignoring whether the numbers are positive or negative Subtracting all of the dollar amounts of the adjustments, ignoring whether the numbers are positive or negative Totaling the dollar amounts of the adjustments, ignoring whether the numbers are positive or negative

Totaling the dollar amounts of the adjustments, ignoring whether the numbers are positive or negative

What's the relationship between townships and sections in the rectangular government survey system? Sections are divided into townships. Townships and sections are opposites. Townships and sections are synonyms. Townships are divided into sections.

Townships are divided into sections.

______ covers the joints between walls and ceilings. Floating Lead-based paint Taping Trim

Trim

Darren set up a land trust so that his children could benefit from his real estate investments after he dies. He asked his financial advisor Tom to manage the trust. Darren is the ______. Beneficiary Executor Trustee Trustor

Trustor

What entity sets the standards for the appraisal report? Appraisal Ethics Association FIRREA State real estate license law USPAP

USPAP

For which of the following properties will the appraiser provide a value for owner shares of a corporation? Condominium unit Time-share estate Time-share use Unit in cooperative housing

Unit in cooperative housing

Which of the four methods used to find the reproduction cost of a structure is considered the second most accurate method? Index Quantity survey Square-foot Unit-in-place

Unit-in-place

With which of the four methods used to find the reproduction cost of a structure does the appraiser multiply the cost per unit of measure of each component part of the subject property's structure (by the number of units of that component part in the subject)? Index Quantity survey Square-foot Unit-in-place

Unit-in-place

Which of the following resources was developed to improve the quality and consistency of appraisal data for loans delivered to Fannie Mae and Freddie Mac? Collateral Underwriter Uniform Collateral Data Portal Uniform Mortgage Data Program Universal Appraisal Dataset

Universal Appraisal Dataset

The ______ are expressed as a percentage of potential gross income. Operating expenses Payroll and management fees Taxes and depreciation Vacancy and collection losses

Vacancy and collection losses

Why might the transfer of a joint tenant's or tenant in common's interest decrease the value of a property? The real estate agent receives a commission from each co-owner, making the property less marketable. The title will have a cloud that must be removed as a result of the co-ownership. The transfer of one co-owner's interest requires the property to be partitioned by the court, which is expensive. When the co-owners can't agree to sell the entire property, potential buyers must purchase as a co-owner to the existing owner(s).

When the co-owners can't agree to sell the entire property, potential buyers must purchase as a co-owner to the existing owner(s).

When will a lessee realize the benefit of deficit rent by sub-leasing the property? When there is excess rent, causing a liability to the lessee When the scheduled rent and market rent are the same When the scheduled rent is higher than the market rent When the scheduled rent is lower than the market rent

When the scheduled rent is lower than the market rent

Where is aluminum wiring used in construction today? In appliances In branch circuit wiring, which goes from the panel through the walls to the outlets and switches In motor vehicles Where the current is heaviest, such as at the service entrance

Where the current is heaviest, such as at the service entrance

When ______ capitalization is used, future income estimates are calculated, then a discount rate is applied. Direct Discounted Reversion Yield

Yield

The amount of money returned from an investment is the ______. Capitalization Cash flow Reversion Yield

Yield - Yield and cash flow both describe return on investment, but cash flow is the amount of income after expenses are deducted.

Discounted cash flow analysis is a form of what? Direct capitalization Present value Residual capitalization Yield capitalization

Yield capitalization