General Report Writing and Case Studies

Applying "best practice", where should a table of contents appear in an Appraisal Report? a. In the scope of work section b. After the transmittal letter c. It is not necessary to have a table of contents d. As an addendum to the report

b. After the transmittal letter

When summarizing public rail transportation that is interconnected with public bus service which of the following terms can be used to summarize such bus service? a. A feeder bus route b. A surface bus route c. An inter-connector route d. A rail support route

a. A feeder bus route

Which of the following would you use to explain or describe the test: legally permissible? a. A use that is permitted by current zoning b. A use that can be obtained through litigation c. A use that can be based on obtaining a variance d. A non-conforming but legal use

a. A use that is permitted by current zoning

When appraising an industrial building, why is important to summarize the ceiling height under beam? a. Because it affects how high an occupant's product can be stacked and therefore it also affects rent and leasing b. Because the building plans may not clearly show the various heights under beam. c. Because it can benefit the appraiser's ability to forecast the market rent d. Because the appraiser is legally required to measure and report the ceiling height to within 1 inch

a. Because it affects how high an occupant's product can be stacked and therefore it also affects rent and leasing

You can always, always do a(n) _______ Approach. a. Cost b. Income c. Sales Comparison d. GRM

a. Cost

When and why would you use the descriptive term "saw toothed" loading docks to summarize the loading docks of an industrial building? a. When the building cannot accommodate "straight in" truck loading and the loading docks were created on a 45 degree angle. b. When the architect used the edge of a handsaw to sketch in the loading docks c. When the concrete of the loading docks was cut in with a power saw d. When the loading docks were created by cutting holes in the side of the building with a gasoline-powered saw

a. When the building cannot accommodate "straight in" truck loading and the loading docks were created on a 45 degree angle.

Navigable waters are owned and controlled by a. either the state or federal government b. the federal government c. the Coast Guard d. state government

a. either the state or federal government

The exclusion any of the three Approaches must be a. explained b. stated c. summarized d. cited

a. explained

When describing a site's highway access, what should an appraiser avoid doing in the summary? a. summarizing that the subject's access road connects with this road and that road and another road and so on b. Including the traffic count in front of the subject and its benefit c. summarizing if the site has access via a traffic light controlled intersection d. Explaining that the access road is about to undergo a widening

a. summarizing that the subject's access road connects with this road and that road and another road and so on

Why should you investigate and discuss in the report if a major employer has departed the area? a. Because when such an employer leaves an area it is important to state that it had no impact on the community b. Because when such an employer leaves an area, it can lead to a population decline as well as decline of housing values c. Because when such an employer leaves an area, it can be very beneficial to the subject property. d. Because when such an employer leaves an area it could bring about future employment diversification

b. Because when such an employer leaves an area, it can lead to a population decline as well as decline of housing values

What should you use the phrase "house of worship" to describe? a. Houses where people can congregate b. That religious facilities of the various faiths and denominations, i.e more than one specific faith or religion, exist c. That different types of housing exist in the area d. That houses as opposed to tents or other facilities are used for religious congregating purposes.

b. That religious facilities of the various faiths and denominations, i.e more than one specific faith or religion, exist

Which of the following would you include in either the micro or neighborhood-vicinity area description of the location and surroundings part of an Appraisal Report for an apartment building? a. The accessibility of a rail line for shipping purposes b. The availability of grocery and other retail shopping c. The proximity to a sports arena d. The property's visibility from a major highway

b. The availability of grocery and other retail shopping

The definitions used by accountants and appraisers are different so, which of the following would you use to summarize depreciation as employed by appraisers? a. The annual percentage decline in the cost new that was expended to create the building b. The difference between the contributory value of an improvement and its cost at the time of the appraisal c. The amount of decline that can be applied to the book cost of a property for income tax purposes d. The annual percentage of a building's original cost by dividing the original cost by its estimated life (in years) and taking that amount as a tax deduction

b. The difference between the contributory value of an improvement and its cost at the time of the appraisal

According to USPAP, which of the following items can simply be stated in an Appraisal Report? a. The appraiser's name, any extraordinary assumptions, and a property sales history b. The real property interest appraised, the effective date of the appraisal, the type of appraisal report c. Summary of the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses d. The scope of work, the problem to be solved, and any hypothetical conditions

b. The real property interest appraised, the effective date of the appraisal, the type of appraisal report

An appraiser is appraising a 3-unit residential property for a Fannie Mae lender. Which form should he use to report the results of this appraisal? a. 1004 b. 1073 c. 1025 d. Either 1004 or 1025

c. 1025

Exposure time is a. Supplied by the client b. A prospective opinion c. An opinion developed by an appraiser d. The same as marketing time

c. An opinion developed by an appraiser

Which type of depreciation is generally incurable? a. Physical deterioration b. Deferred maintenance c. External obsolescence d. Functional obsolescence

c. External obsolescence

Which is NOT true of radon? a. It can be found in water b. It is found naturally in the ground c. It smells like sulphur d. It is extremely toxic

c. It smells like sulphur

Under SR 2-3, the appraiser must certify they have no _________interest in the subject property. a. present b. unrevealed c. present or prospective d. present or past

c. present or prospective

Functional obsolescence is the impairment of functional capacity of improvements according to market _______________. a. expectations b. trends c. tastes and standards. d. value

c. tastes and standards.

Which of the following would be considered as good reliable sources of historical information about a township? a. National real estate publications and the New York Times b. www.census.gov and www.marshallandswift.org c. the township's chamber of commerce, economic development agency, township clerk and the chairman of the planning board d. www.bloomberg.com and www.loopnet.com

c. the township's chamber of commerce, economic development agency, township clerk and the chairman of the planning board

When writing a county summary why can it be meaningful to identify and include the county seat? a. Because that is usually where the county government is seated and conducts its business b. To explain to the intended user what a county seat is, in case he/she does not know c. To show that you understand what a county seat is d. Because they are a significant if not major focus of business and commerce within a county

d. Because they are a significant if not major focus of business and commerce within a county

You are writing a location and surroundings section using the technique of describing the macro area, micro area and immediate vicinity in the report. Because many of the items can be the same, as a writer, what should you be conscious of and try to avoid? a. Use of the same phrases b. Use of the same adjectives c. Using short, crisp sentences d. Being redundant

d. Being redundant

Which of the following items would typically only be applicable when summarizing a hotel building? a. The type of HVAC b. Quality of floor coverings c. Skylights d. Chattels

d. Chattels

A partially enclosed body of water where saltwater from the sea mixes with freshwater is a(n) a. Wetlands b. Flood Plain c. Marsh d. Estuary

d. Estuary

When summarizing a site's zoning which of the following should be stated and/or explained? a. If the site is surrounded by other sites with the same zoning classification b. If the ordinance requires the preservation of any open space. c. When the property was approved and the zoning classification at the time d. The current zoning classification, if the subject received any variances, if the site complies with current zoning and if it is a legal conforming or legal non-conforming use.

d. The current zoning classification, if the subject received any variances, if the site complies with current zoning and if it is a legal conforming or legal non-conforming use.

When performing a shopping center appraisal, which of the following location items would be of special interest to an owner, their tenants, and accordingly the intended user, as they can affect the rents? a. The location and proximity to grocery shopping b. The location and proximity to a public swimming pool c. The location and proximity to a shipping port d. The per capita income and retail purchasing power of the population within a 3 to 5 mile radius

d. The per capita income and retail purchasing power of the population within a 3 to 5 mile radius

When performing an appraisal of a "flag" hotel occupying a suburban highway location, which of the following would the intended user likely be interested in knowing about such property's location? a. The location and proximity to support services such as copy centers and a post office b. The location and proximity to a new housing development c. The location and quality of the local public school system d. The visibility and ease of access from the highway

d. The visibility and ease of access from the highway

When describing the history of a city, region or county, what type of historical things should you include and describe? a. Nothing that occurred or existed prior to 1970 b. The community's history since the date it was first incorporated c. Everything that occurred within the last 20 years, even if it no longer has a meaningful impact on the property's location d. Things that occurred and/or exist that have a meaningful impact on the property's location

d. Things that occurred and/or exist that have a meaningful impact on the property's location

Before sending the Appraisal Report to the intended user, why should you always check the table of contents? a. To make sure that you included one b. To make sure that it reflects the inclusion of general assumptions and limiting conditions c. To avoid be accused of preparing a careless appraisal report d. To see that it is accurate and that you have placed the appraisal report pages in the correct order

d. To see that it is accurate and that you have placed the appraisal report pages in the correct order

When summarizing an industrial building that features a railway siding that goes into the building what benefit can an appraiser attribute to such inside loading? a. The loading area will always benefit from the building's interior lighting b. Shipping by train is less efficient than shipping by truck, so this offers no benefit c. It allows more direct supervision by the foreman d. it prevents loss of the building's HVAC and provides "secured" loading and unloading

d. it prevents loss of the building's HVAC and provides "secured" loading and unloading

USPAP says that in an Appraisal Report you must ____________ the Intended Use. a. summarize b. provide c. identify d. state

d. state

When the Cost Approach is necessary for credible appraisal assignment results, what does USPAP require the appraiser to do? a. Develop an opinion of site value by an appropriate appraisal method or technique b. Analyze such comparable sales data as are available to indicate a value conclusion c. Use a hypothetical condition in developing an indication of value d. Develop and estimate of building replacement cost by use of a national cost service publication

a. Develop an opinion of site value by an appropriate appraisal method or technique

When you are writing a summary of a property's location and surroundings, it can aid your ability to do that if you a. Assume that intended user is unfamiliar with the location b. Assume that the intended user is totally knowledgeable about the location c. Include a grid of the area's historical population statistics dating back to World War I d. Contact the client and provide an oral opinion about the location in addition to the written report

a. Assume that intended user is unfamiliar with the location

Some leases contain clauses that are potentially harmful to a property's income, such as an early termination option. If such clauses do exist in an apartment lease, which of the following would you use to explain that they are usually not very significant? a. Because apartment leases are typically written for one year terms with no formal renewal options so such lease will end in a year or less effectively removing the potential harm b. Because apartment owners can often raise their rents more than once a year c. Because apartment owners take security deposits they can retain the security deposit to off set the harm of any such clause d. Because an apartment owner that would agree to a harmful clause usually negotiates some type of "off set" in the lease to counteract the harm if caused

a. Because apartment leases are typically written for one year terms with no formal renewal options so such lease will end in a year or less effectively removing the potential harm

Why can summarizing the loading docks and their appointments of an industrial or flex building be critical? a. Because the description will convey a sense of the building's quality to the intended user b. Because it will help the appraiser to estimate the price per square foot in the Marshall & Swift manual for cost approach purposes c. Because the loading docks and the exterior area around them are typically included in the square footage of the building d. Because the appointments are usually impacted by the property's local climate

a. Because the description will convey a sense of the building's quality to the intended user

Which of the following would you use to explain why you had to make adjustments to the comparable sales you used in the Sales Comparison Approach? a. Because there are differences between the comparables used and the subject property you had to make adjustments to the data of the comparable sales in order to equate the data to the subject for meaningful comparison purposes b. Because the data secured is not always fully reliable you had to make adjustments to the data of the comparable sales in order to equate the data to the subject for meaningful comparison purposes c. Because the subject is older than all of the comparables typically used by appraisers in a sales comparison approach, appraisers always need make adjustments to the data of the comparable sales in order to equate the data to the subject for meaningful comparison purposes d. Because no two properties are exactly alike you selected a comparable that was most like the subject but you had to make adjustments because its sale occurred many years ago

a. Because there are differences between the comparables used and the subject property you had to make adjustments to the data of the comparable sales in order to equate the data to the subject for meaningful comparison purposes

Why would you include the nearby location of a major landmark, national park, monument, mountain or resort in a location and surroundings section? a. Because these items are often well known, are usually tourists attractions, add stability and employment and contribute to the community. b. To show to the intended user that you have thoroughly researched the region and have noticed even trivial information c. Because they are usually located in the county seat and therefore should not be overlooked d. Because even if they are not well known, are not tourist attractions or add stability, they should be noted simply because they exist

a. Because these items are often well known, are usually tourists attractions, add stability and employment and contribute to the community.

Where they exist and are meaningful to address within a location and surroundings, why might shipping ports be important and need to be addressed? a. Because they are employment centers and often also offer recreational cruises. b. Because they exist they should be described to show that you have performed adequate research c. Because many bring crude oil to local refineries and periodically require dredging the waterway that adds temporary employment d. Because rail transportation is no longer viable, so consumer goods have to be sent by ship

a. Because they are employment centers and often also offer recreational cruises.

Which of the following are important to every community and should be discussed in a location and surroundings section? a. Employment stability and job growth b. The nearest national park or other tourist attraction c. The number of commercial properties in the community d. The number of retail facilities in the community

a. Employment stability and job growth

When you are writing a conclusion to a micro area description portion of your location and surroundings, which of the following is a good question to ask yourself to help develop your conclusory paragraph? a. How will the community's projected growth, stagnant growth or decline impact the subject? b. What will the current tax rate be c. How will the area's existing public transportation affect the subject d. How will the area's changing weather climate affect the subject?

a. How will the community's projected growth, stagnant growth or decline impact the subject?

If public water and sewer is not currently available to the site, what should an appraiser investigate and (if appropriate) summarize? a. If public water and sewer will ever be available in the near future b. If the community has a municipal utilities authority or similar agency c. The cost of such public water and sewer d. The quality of the drinking water that is supplied by the local water company

a. If public water and sewer will ever be available in the near future

When an on site swimming pool, clubhouse and/or tennis courts are featured at an apartment complex, aside from providing a basic physical description, what else should an appraiser be sure to also explain about each? a. If they are free to tenants and their guests or if there are charges b. If they are available 365 days a year c. Any repairs that have been made to the pool or tennis court within the prior five years d. If swimming and tennis lessons are available to residents

a. If they are free to tenants and their guests or if there are charges

As part of your appraisal scope of work, you decided not to perform certain research or take actions that you felt inappropriate, but that may be expected by an intended user. Where would you explain that in your narrative report? a. In the scope of work b. In the general assumptions and limiting conditions c. In the economic analysis d. In the transmittal letter

a. In the scope of work

When providing a summary of the subject site, what should the appraiser be sure to do? a. Include all of the meaningful aspects associated with the subject's parcel of land b. Include an aerial photograph of the site c. Include a surface area photograph of the site d. Provide turn-by-turn directions from the airport to the subject property, so an out-of-town intended user can fly into town to personally observe the property

a. Include all of the meaningful aspects associated with the subject's parcel of land

When explaining highest and best use, what are the four "tests" that you need to explain about the property's use? a. Legally permissible, physically possible, financially feasible, maximally productive b. Legally permissible, appropriately supported, socially acceptable, uniquely profitable c. Height, best use, leverage, optimum of return d. Zoning, financing, utility availability, availability of equity

a. Legally permissible, physically possible, financially feasible, maximally productive

Which of the following are some meaningful things you should investigate and include in an immediate neighborhood or vicinity description, irrespective of the property type being appraised? a. Proximity to a fire station, the location of the nearest bus or commuter rail station b. Proximity to a river and an auto repair shop c. Proximity to gas stations and card and gift shops d. Proximity to garden nursery and a clothing store

a. Proximity to a fire station, the location of the nearest bus or commuter rail station

Which of the following would you use to summarize that the loading docks of an industrial building were tailgate height? a. That they are approximately 4' above grade and basically align with the floor height of the average truck trailer b. That they were on grade but could accommodate tractor trailer floor height loading by using a tow motor to unload the cargo c. That tractor trailer trucks were able to drive into the building to unload their tailgate height cargo d. That an on grade building can use a load leveler to effectively create loading that matched the height of the average truck trailer

a. That they are approximately 4' above grade and basically align with the floor height of the average truck trailer

Today, on-site parking is critical to most properties. When summarizing a site's parking what should an appraiser always include? a. The number of spaces, the appropriate ratio per unit, per room of per square foot of building area and compliance with the zoning code. b. The width of the handicap designated spaces c. That the parking is paved and striped d. If the metered cost of any on street parking or the daily cost of nearby garage parking

a. The number of spaces, the appropriate ratio per unit, per room of per square foot of building area and compliance with the zoning code.

When writing about most community's road network or highway system (including any significant bridges) what is important to summarize? a. The roads that materially contributed to the past, present and future growth of the community b. Their age, any repairs needed, and if repairs are federally or locally funded c. The driving time to other nearby communities d. A list of the most traveled roads, with their interstate, state and local road numbers

a. The roads that materially contributed to the past, present and future growth of the community

What should you include when summarizing the balconies of an apartment building? a. The type of construction (concrete, wood, etc.), if they are rail enclosed, if they have a floor covering and how they are accessed. b. If they are attractive, if they are landscaped and if they permit use for grilling/barbecuing c. If they are included in the rent or if there is an extra charge, if they act as a fire exit and if they are treated with a non-slip surface d. Are awning covers permitted, if a mechanical room adjoins and if a storage closet adjoins

a. The type of construction (concrete, wood, etc.), if they are rail enclosed, if they have a floor covering and how they are accessed.

What is accomplished by reiterating the type of value to be appraised, the property rights appraised, and showing the separate values derived by the various approaches at the beginning of the reconciliation narrative? a. To affirm that you are opining to the correct value and property rights as well as to make it easy for the intended user to understand and follow the logic and discussion without having to refer back to previous sections of the report b. It is customary business practice to start the final reconciliation this way, and it is important to use the exact wording that your peers would use c. To affirm that you have performed the appraisal in accordance with the earlier stated scope of work d. To demonstrate that you have performed the appraisal in accordance with the terms and condition of the assignment agreement, so that the client understands the scope of work used to solve the appraisal problem

a. To affirm that you are opining to the correct value and property rights as well as to make it easy for the intended user to understand and follow the logic and discussion without having to refer back to previous sections of the report

What type of fire departments are usually found in a township? a. A "trainee" fire department b. One with a paid full-time police department where the officers also serve as the fire department c. Either a volunteer or paid full-time department d. One with four engines and a hook and ladder

c. Either a volunteer or paid full-time department

When explaining the kitchen featured in an apartment unit, what should the appraiser summarize? a. Just the appliances and if the cooking is gas or electric b. All of the appliances, if the cooking is gas or electric, the cabinetry, the countertops and back splash, the sink and faucet c. All of the appliances, if the cooking is gas or electric and if a fan/light fixture is provided d. All of the appliances, if the cooking is gas or electric and if a washer and dryer are provided are they located in the kitchen and if the dryer is gas or electric powered

b. All of the appliances, if the cooking is gas or electric, the cabinetry, the countertops and back splash, the sink and faucet

Why should a community's residential concentrations and housing composition be discussed in an appraisal report? a. Because even a community dominated by industrial plants and office buildings has a few housing concentrations b. Because a community's housing concentrations is a primary reason why the community exists and tells a great deal about what type of area it is c. Because it is customary to describe a community's housing in a location and surroundings d. Because all appraisal reports must have some information about residential housing concentrations

b. Because a community's housing concentrations is a primary reason why the community exists and tells a great deal about what type of area it is

Why is it good to summarize any improvements made in the last three years, and their costs, when summarizing an existing building? a. To show that you were serious about including a lot of information in your appraisal report b. Because it conveys both a sense of the current condition of the building and the level of care and maintenance by the owner. c. Because the appraiser can use those costs to estimate future improvement costs d. Because the appraiser can use that knowledge to make a recommendation about the building's management

b. Because it conveys both a sense of the current condition of the building and the level of care and maintenance by the owner.

Why is it important to write about if the property has been sold within the past three years? a. To help in filing a criminal complaint against the owner for illegal property flipping or mortgage fraud b. Because it is required by USPAP and if such sales, listings or agreement exists or existed they could impact the opinion of value. c. Because providing a written explanation is more professional than just stating "none" d. It is not important; this information is rarely necessary in a real property appraisal report

b. Because it is required by USPAP and if such sales, listings or agreement exists or existed they could impact the opinion of value.

When appraising an industrial or flex style industrial-office building why is it important to summarize the amount of space that is finished as office space? a. Because the building plans may not clearly show the actual amount of space currently finished as office space b. Because it will affect the way the appraiser develops and analyzes the rental income in the income approach as it is affected by the percentage of finished office space c. Because it will enable the appraiser to be able to separately summarize the office and warehouse or shop finishes d. This is not important; the amount of finished office space does not matter in the appraisal of an industrial or flex building

b. Because it will affect the way the appraiser develops and analyzes the rental income in the income approach as it is affected by the percentage of finished office space

Why should you describe the location of any professional sports teams, if they exist? a. Because football and baseball are of interest to many Americans b. Because many residents and employers identify with them and they are sources of pride, employment and other stimulus. c. Because professional soccer is on the upswing and such a team would suggest growth d. Because the cost of building a new stadium may be on the ballot and could impact the local tax rate

b. Because many residents and employers identify with them and they are sources of pride, employment and other stimulus.

Why can it be meaningful to obtain and include a list of the community's largest employers in an appraisal report? a. Because USPAP specifically requires a list of the top 5 employers in the region be included in any written report b. Because the names and types of companies and industries create an impression about employment stability and desirability. c. Because the intended user may want to copy the appraisal report and send it to these entities d. Because the intended user may already know of their potential existence and your inclusion will confirm that information

b. Because the names and types of companies and industries create an impression about employment stability and desirability.

When the lease of a retail tenant contains a co-tenancy and/or non-compete clause in its lease, why is it important to explain and summarize the existence of such a clause? a. Because the appraiser is expected to develop an opinion of the legality and enforceability of the lease documents b. Because they can potentially have a negative impact on a property's future income and value c. Because the client may not have informed you that such clauses existed d. Because they will lead to the tenant's filing a bankruptcy

b. Because they can potentially have a negative impact on a property's future income and value

Why can the existence of skylights sometimes be summarized as a benefit? a. Because roofs without skylights are more prone to leaking b. Because they can reduce the cost of lighting during daylight hours and if they open can be a source of ventilation c. Because they can reduce the amount of rainwater runoff on a roof d. Because they enhance the exterior appearance of a roof

b. Because they can reduce the cost of lighting during daylight hours and if they open can be a source of ventilation

Why should you investigate and discuss if any new major employers have or are coming into an area? a. Because when such an employer comes into an area, it generally has no effect on property values but it makes your report more thorough b. Because when such an employer comes into an area it usually has a beneficial impact on the community and adds employment stability. c. Because when such an employer comes into an area it usually has an adverse impact on the value of the subject property. d. Because when such an employer comes into an area it usually creates a number of part-time jobs.

b. Because when such an employer comes into an area it usually has a beneficial impact on the community and adds employment stability.

In an Appraisal Report on an improved property what two things do you explain that highest and best use is applied to? a. The height and use of the building b. Both the land as though vacant and to the property as if improved c. Demolition justification and replacement or reproduction cost d. Financial feasibility and comparison of comparables

b. Both the land as though vacant and to the property as if improved

What is a good way to enhance your summary to the intended user of the rental market survey you conducted and the comparables you relied upon? a. By providing a spreadsheet of all of the sales in the market area, with the comparable sales you used highlighted in yellow b. By including a comparative grid of the information, supplement by photographs of each of the comparables and a map showing their respective locations c. By including copies of the appropriate pages of any national surveys d. By including a photograph, aerial photograph and site plan of the subject

b. By including a comparative grid of the information, supplement by photographs of each of the comparables and a map showing their respective locations

What is a good way to show and explain the mix and type of units of an apartment as well as their sizes? a. By providing a detailed rent roll of every unit, with lease expiration dates b. By outlining the information in "mini-grid" form in the narrative c. By including photographs of each type and labeling them d. By describing each unit individually and showing your calculations

b. By outlining the information in "mini-grid" form in the narrative

How is the access to the balcony or patio area of an apartment typically provided? a. Through a closet-like door off either the living room, den, dining room or bedroom b. By sliding glass doors off either the living room, den, dining room or bedroom. c. By climbing a ladder from the interior courtyard d. Through a large, operable window off either the living room, den, dining room or bedroom

b. By sliding glass doors off either the living room, den, dining room or bedroom.

If you are explaining that parking income is included as additional income, what else is it prudent for an appraiser to investigate and discuss, in addition to stating the income from parking? a. Establish its durability by reviewing the past 10 year's history, verified by tax returns b. Conduct a survey of what other developments or nearby public parking garages charge for parking and discuss if the subject's charges are above, below or in line with the competition c. Ascertain if the spaces are leased daily, monthly , semi-annually or annually and if the leases are guaranteed d. Ascertain the number of spaces and the current and historic applicable vacancy factor

b. Conduct a survey of what other developments or nearby public parking garages charge for parking and discuss if the subject's charges are above, below or in line with the competition

Our scope of work decisions are largely determined by the a. Client b. Intended use c. Intended user d. Highest and Best Use

b. Intended use

Which statement is TRUE regarding the 1004 MC addendum form? a. It is still required by Fannie Mae but not Freddie Mac. b. It is no longer required by Fannie Mae or Freddie Mac. c. It is an outdated form and should never be used. d. The Department of Veterans Affairs (VA) still requires its use in 2-4 family appraisal reports.

b. It is no longer required by Fannie Mae or Freddie Mac.

What is the benefit of a community of having a diverse economy? a. It provides different levels of employment and wage levels b. It provides more employment stability than an economy concentrated in one or two industries c. It can accommodate educated as well as uneducated individuals d. It provides "second job" opportunities for military families

b. It provides more employment stability than an economy concentrated in one or two industries

When writing a micro area description (i.e., a township description), while it should be objective and generic what should it focus on? a. It should focus on and discuss more about the national and international trends that affect the subject b. It should focus on and expound more about the location aspects that have a more direct effect on the subject property c. The quality of the public school system as well as nearby institutions of higher learning d. The population growth of the state, county, and any nearby city

b. It should focus on and expound more about the location aspects that have a more direct effect on the subject property

If you include aerial photographs as visual aids in the appraisal report, what should you be sure to do? a. Make sure they are in color as opposed to black and white b. Make sure they are properly labeled and identify the subject by outlining it in red or using a red arrow c. Make sure you include it in a meaningful location in the report or in the addendum d. Make sure that it is no greater than approximately 8 ½ x 11 in size

b. Make sure they are properly labeled and identify the subject by outlining it in red or using a red arrow

What appraisal term is defined as "The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite for a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self interest, and assuming that neither is under undue duress"? a. Investment value b. Market value c. Property rights value d. Book value

b. Market value

With rare exception, real property appraisers are most often hired to provide an opinion of what type of value? a. Business value b. Market value c. Value in use d. Liquidation value

b. Market value

When writing an immediate neighborhood or vicinity description, what do you specifically want to summarize about the subject's access? a. How it can be accessed on weekends and holidays b. Specifically how the subject is connected to the road/highway network. c. How pedestrians can access it via a concrete or brick pavers type sidewalk d. If there is a helicopter port on the roof of a nearby building

b. Specifically how the subject is connected to the road/highway network.

According to USPAP, which of the following items can simply be stated in an Appraisal Report? a. The appraiser's name, any extraordinary assumptions, and a property sales history b. The real property interest appraised, the effective date of the appraisal, the type of appraisal report c. summary of the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses d. The scope of work, the problem to be solved, and any hypothetical conditions

b. The real property interest appraised, the effective date of the appraisal, the type of appraisal report

What does "best practice" suggest an appraiser should do concerning summarizing a property's compliance with the Americans With Disabilities Act? a. Ignore the ADA requirements stating within the general assumptions and limiting conditions that the appraiser is not qualified to address them b. To investigate the property for compliance and where appropriate, explain and discuss it in the appraisal report c. Discuss the potential for "grandfathering" that can eliminate any concern about making future improvements to bring the property into compliance d. Check to see if the lavatories, halls, elevators and parking comply with the ADA guidelines and if so declare the building in compliance and of no concern

b. To investigate the property for compliance and where appropriate, explain and discuss it in the appraisal report

Why are employers often concerned about the availability of public transportation? a. To see if their employees do not need to own a car so they can accept lower wages b. To see if it is readily available and convenient to provide easy access to large concentrations of employees c. To see if the daily commuter cost is reasonable and federally subsidized d. To know if the CEO can commute to work by rail as opposed to needing a driver and car

b. To see if it is readily available and convenient to provide easy access to large concentrations of employees

An appraiser receives an appraisal assignment from a lending institution, to be reported using the URAR form. The appraiser determines that the Cost Approach is necessary for the production of credible results. What should she do? a. Not develop the Cost Approach because the form does not require it b. Obtain the client's permission to not develop the Cost Approach c. Develop the Cost Approach and put it in the report d. Develop the Cost approach but omit it from the report

c. Develop the Cost Approach and put it in the report

Which of the following is considered to be the best type of party wall for fire and sound protection between units of a three-story apartment building? a. A wall of exterior-grade drywall b. A drywall covered concrete block wall that extends just above the ceiling of the top floor units c. A drywall covered concrete block wall that extends through and above the roof d. A pressure-treated wood wall covered with fire-resistand paneling

c. A drywall covered concrete block wall that extends through and above the roof

When a commercial lease requires the tenant to pay and or perform and pay for all of the property's real estate taxes and operating expenses, which of the following terms would you use to denote such a lease? a. A gross lease b. A gross plus lease c. A net, net, net or fully net lease d. A landlord's lease

c. A net, net, net or fully net lease

In a narrative appraisal report, why is it important to include an opinion about the property's location? a. Because the client may not actually read the report b. Because the client might not be able to find the location map within the report c. Because intended users value the appraiser's opinion about the location d. The premise of the question is incorrect; an appraiser must never express an opinion about the property's location

c. Because intended users value the appraiser's opinion about the location

When appraising an industrial building why is important to summarize the column spacing? a. To indicate if the building has a "flat floor" b. To explain how the roof bar joists are supported c. Because it affects how the floor area can be used for storage and other purposes as well as affects the ability to subdivide for multi-tenant purposes d. Because it affects if the building can be occupied by a single company.

c. Because it affects how the floor area can be used for storage and other purposes as well as affects the ability to subdivide for multi-tenant purposes

Why is it important to summarize the party walls in a building? a. To explain if there is any deferred maintenance b. Because it is part of providing a reasonably thorough description of the property's construction details. c. Because it is an important fire and sound/noise concern. d. Because part of the appraiser's responsibility is to determine code compliance

c. Because it is an important fire and sound/noise concern.

What types of laundry facilities are typically featured and summarized in an apartment complex? a. None unless brought into the unit and owned by the tenant b. $20 monthly credit at a nearby laundromat c. Either in unit washers and dryers or coin operated washers and dryer located in common/central laundry rooms d. Laundry tubs in the basement for hand-washing items of clothing

c. Either in unit washers and dryers or coin operated washers and dryer located in common/central laundry rooms

According to USPAP, an appraisal report can be delivered: a. Orally only b. Written only c. Either orally or written d. None of the above

c. Either orally or written

Which of the following would you use to summarize the entrepreneur's profit factor applied in the Cost Approach? a. Entrepreneur's profit factor is a factor used in developing the Cost Approach to explain any difference between the total replacement or reproduction cost and the value derived via a discounted cash flow analysis b. Entrepreneur's profit factor is a factor used in developing the Cost Approach to explain any difference between the total replacement or reproduction cost and the value derived via the sales comparison approach c. Entrepreneur's profit factor is a factor used in developing the Cost Approach to reflect the incentive, profit or economic motive that a developer intends to make for taking the risk of investing their time and or capital d. Entrepreneur's profit factor is a factor used in developing the Cost Approach to explain any difference between the total replacement or reproduction cost and the value derived via the income approach

c. Entrepreneur's profit factor is a factor used in developing the Cost Approach to reflect the incentive, profit or economic motive that a developer intends to make for taking the risk of investing their time and or capital

When describing a site's access in an appraisal report, which of the following are additional things to consider and summarize? a. If the street has curbing b. If the street is patrolled by police c. If the street is a divided highway with a median strip in front of the subject and/or if the subject has 4 way highway access d. If the street is properly striped

c. If the street is a divided highway with a median strip in front of the subject and/or if the subject has 4 way highway access

When writing a location and surroundings section, if you have discovered and discussed that a new competing facility is being constructed, where else in the appraisal report will you also need to address and discuss that? a. In the cost approach b. In the sales comparison approach c. In the rental market study portion of the income approach d. Nowhere else

c. In the rental market study portion of the income approach

Under the USPAP definition of assignment results, __________are not assignment results. a. Market studies b. Opinion letters c. Physical characteristics d. External market factors

c. Physical characteristics

If you use and disclose an extraordinary assumption or hypothetical condition what else does USPAP require you to do in your Appraisal Report? a. State that it was required to produce credible results b. State it in multiple places throughout the Appraisal Report c. State that the use of the extraordinary assumption or hypothetical condition might have affected the assignment results d. State that the intended user imposed such use as part of the assignment

c. State that the use of the extraordinary assumption or hypothetical condition might have affected the assignment results

How would you explain how the appraiser obtained a market-derived cap rate? a. That the appraiser derived the cap rate from information obtained from recent appraisals of other properties in the marketplace b. That the appraiser derived the cap rate from opinions obtained from speaking with other appraisers and industry participants active in the current marketplace c. That the appraiser derived the cap rate from information obtained from recent sales in the marketplace d. That the appraiser derived the cap rate after speaking with local tax assessor and ascertaining what they are currently using in the marketplace

c. That the appraiser derived the cap rate from information obtained from recent sales in the marketplace

Which of the following is a USPAP requirement that applies to all types of written real property Appraisal Reports? a. The appraiser must perform a Cost Approach b. The appraiser must use at least three comparable sales c. The appraiser must clearly and accurately set forth the appraisal in a manner that will not be misleading d. The appraiser must provide the report in a concise manner, using bullet points if possible

c. The appraiser must clearly and accurately set forth the appraisal in a manner that will not be misleading

If you are writing a location and surroundings section using the technique of describing the macro area, micro area and immediate vicinity, which should you describe objectively and from a "high elevation"? a. The immediate vicinity b. Turn-by-turn directions from the subject property to the county courthouse c. The macro area d. The history of the area back to 1800

c. The macro area

Which of the following would you use to explain the way of creating tenant improvement reserve estimates in the Direct Capitalization method? a. To estimate reserves in Direct Capitalization, the appraiser uses the per square foot replacement or reproduction cost obtained from a national building cost manual and divides that by 10 (assumes a 10 year straight line approach) b. To estimate reserves in Direct Capitalization, the appraiser relies upon the depreciated book cost of the building and improvements and divides that by 10 (assumes a 10 year straight line approach) c. To estimate reserves in Direct Capitalization, a simple dollar per square foot allowance is applied to the entire leasable area of the area of the building as appropriate with exceptions for formally rated tenants with lease terms of 10 years or more d. To estimate reserves in Direct Capitalization, an appraiser contacts mortgage lenders and other appraisers to see what they are using

c. To estimate reserves in Direct Capitalization, a simple dollar per square foot allowance is applied to the entire leasable area of the area of the building as appropriate with exceptions for formally rated tenants with lease terms of 10 years or more

Which of the following may be the best opportunity for clear communication because of a combination of data interchange ? a. E-mail b. Telephone c. Written d. Face to face

d. Face to face

The Comment to STANDARD 2 of USPAP says the form, format, and style of a report are functions of the needs of ____________________. a. Government agencies who use appraisals b. Clients only c. Borrowers d. Intended users and appraisers

d. Intended users and appraisers

What is the purpose of explaining your scope of work in an Appraisal Report? a. To be used in a comparative analysis b. To support your final opinion of value c. To provide a redundant explanation of items that were previously addressed elsewhere in the appraisal report d. It explains to the intended user all of the work and information considered including the steps taken to value the property

d. It explains to the intended user all of the work and information considered including the steps taken to value the property

Overall plans that were created when the original zoning ordinances were implemented are called _____. a. Regional Plans b. Templates c. Municipal Ordinances d. Master Plans

d. Master Plans