APPRAISALS

"BLOCK 17, LOT 5 OF THE WOODCREEK SUBDIVISION" IS AN EXAMPLE OF A LAND DESCRIPTION USING WHICH OF THE FOLLOWING SYSTEMS? A. LOT AND BLOCK B. RECTANGULAR METHOD C. METES AND BOUNDS D. GOVERNMENT SURVEY E. MONUMENTS SURVEY

A

A DEED SHOULD BE RECORDED IN ORDER TO A. GIVE CONSTRUCTIVE NOTICE OF THE TRANSACTION B. COMPLY WITH FEDERAL AND STATE LAW C. PASS TITLE D. MAKE THE DEED A LEGAL DOCUMENT E. ESTABLISH THE PRIORITY OF CLAIM OF THE PURCHASER

A

A LARGE HOME BUILT IN AN AREA OF SMALL COTTAGES IS AN EXAMPLE OF A. OVERIMPROVEMENT B. UNDERIMPROVEMENT C. LAND REGRESSION D. FUNCTIONAL OBSOLESCENSE E. ENVIRONMENTAL AESTHETICS

A

A VALUE ESTIMATE IS A(N) A. ESTIMATE OF A SELLING PRICE B. PREDICTION THAT PROPERTY WILL SELL FOR EXACTLY THE AMOUNT NAMED C. PROJECTION OR EXTRAPOLATION OF HISTORIC PRICE TO FUTURE PRICE D. SOPHISTICATED GUESS BY EXPERT E. PROMISE OR OPTION TO BUY

A

ALL OF THE FOLLOWING STATEMENTS ARE TURE EXCEPT: A. REAL PROPERTY REFERS TO ITEMS THAT ARE NOT PERMANENTLY FIXED TO A PART OF THE REAL ESTATE. B. APPRAISING IS THE ART AND SCIENCE OF ESTIMATING THE VALUE OF AN ASSET C. ASSETS TYPICALLY REQUIRING APPRIASAL INCLUDE REAL AND PERSONAL PROPERTY. D. ASSET VALUES CHANGE WITH TIME. E. MARKET CHANGE WITH SUPPLY AND DEMAND

A

BUILT-IN APPLIANCES ARE LEGALLY CLASSIFIED AS A. REAL ESTATE B. TRADE FIXTURES C. CHATTELS D. PERSONAL PROPERTY E. AMENITIES

A

LEGAL TRANSACTIONS THAT FREQUENTLY REQUIRE APPRAISALS ARE A. INCOME-TAX-DEDUCTIBLE CHARITABLE CONTRIBUTION OF PROPERTY, ESTATE TAX, AND PROPERTY SETTLEMENT UPON DIVORCE B. DAMAGE LAWSUITS, LOAN FORECLOSURES, AND SECURITY FOR BAIL BONDS C. COMPANY MERGER, TAX BASIS, AND LOAN ASSUMPTIONS D. ALL OF THE ABOVE E. NONE OF THE ABOVE

A

PRICE AND VALUE ARE A. NOT NECESSARILY THE SAME B. SYNONYMOUS C. DIFFERENT, DEPENDING ON FINANCING TERMS D. CLOSE TOGETHER IN AN INACTIVE MARKET E. USED INTERCHANGEABLE IN A REPORT

A

PROPERTY DESCRIPTION IS NECESSARY TO A. IDENTIFY AND LOCATE THE SUBJECT PROPERTY B. IDENTIFY THE PROPERTY RIGHTS BEING APPRAISED C. FIND THE APPROPRIATE SECTION IN THE REPORT D. FIND THE OFFICIAL MAP CODING OF THE SUBJECT PROPERTY E. TELL WHERE THE PROPERTY DEED IS CORDED

A

THE DIRECT SALES COMPARISON APPROACH TO APPRAISING DERIVES AN ESTIMATE OF VALUE FROM A. SALES OF COMPARABLE PROPERTIES B. COMPARISON OF THE ARCHTECTURE OF PROPERTIES C. COMPARISON OF LOANS MADE ON PROPERTIES D. ORIGINAL COSTS OF COMPARABLE PROPERTIES E. CHECKING PRICES IN THE WALL STREET JOURNAL STOCK MARKET REPORT

A

THE IDENFIFICATION AND STUDY OF A PERTINENT MARKET IS CALLED A. MARKET ANALYSIS B. NEIGHBORHOOD REVIEW C. PROPERTY RESEARCH D. MARKET SEGMENTATION E. MARKET INTERACTION

A

THE PRINCIPLE OF ANTICIPATION A. IS FUTURE ORIENTED B. IS PAST ORIENTED C. INVOLVES THE "AS OF" DATE FOR AN APPRAISAL D. PREDICTS THE LOAN-TO-VALUE RATIO FOR THE SUBJECT PROPERTY E. IS SUBSTITUTION ORIENTED

A

TO BE CONSIDERED AS A POSSIBLE ALTERNATIVE FOR HIGHEST AND BEST USE, A USE MUST BE A. PHYSICALLY AND LEGALLY POSSIBLE AND FINANCIALLY FEASIBLE B. PHYSICALLY AND LEGALLY POSSIBLE C. ALREADY IN EXISTENSE AND LEGAL D. PHYSICALLY POSSIBLE AND APPROPRIATE E. LEGAL AND PROFITABLE

A

WHEN APPLYING THE CONCEPT OF HIGHEST AND BEST USE OF LAND AS IF VACANT, THE ASSUMPTION IS MADE THAT A. ANY EXISTING BUILDING CAN BE DEMOLISHED B. ZONING CANNOT BE CHANGED C. THE BASIC CHRACTERISTICS OF A SITE CAN BE CHANGED D. VACANT LAND PRODUCES MAXIMUM INCOME E. LAND IS NOT SUBJECT TO EROSION

A

WHICH OF THE FOLLOWING IS AN IMPORTANT GOVERNMENTAL INFLUENCE ON NEIGHBORHOOD VALUES? A. ZONING CODE B. INCOME LEVEL C. OWNER OCCUPANCY D. FLOOD PLAIN MAPPING E. ETHNIC CONCENTRATION

A

ALL OF THE FOLLOWING ARE CONSIDERED LEGAL ENCUMBRANCES EXCEPT A. LEASES B. UTILITIES C. ZONING D. MORTGAGES E. LIENS

B

ALL OF THE FOLLOWING ARE MAIN SECTIONS IN THE TYPICAL NARRATIVE APPRAISAL REPORT EXCEPT A. INTRODUCTION B. ENGAGEMENT LETTER C. DESCRIPTION, ANALYSES, AND CONCLUSION D. ADDENDA E. VALUATION

B

ALL OF THE FOLLOWING TYPES OF BROAD FORCES AFFECT VALUE EXCEPT A. PHYSICAL B. INTELLECTUAL C. INTELLECTUAL D. SOCIAL E. ECONOMIC

B

AN OBJECTIVE KIND OF VALUE THAT CAN BE ESTIMATED FOR PROPERTY BOUGHT AND SOLD IN THE MARKET IS CALLED A. VALUE IN USE B. VALUE IN EXCHANGE C. ECONOMIC VALUE D. POTENTIAL VALUE E. INSURABLE VALUE

B

AN ORAL APPRAISAL REPORT A. IS NOT WORTH THE PAPER IT IS WRITTEN ON B. MUST BE SUPPORED BY A WORKPAPER FILE C. IS UNETHICAL D. IS IMPOSSIBLE E. IS A LEGITIMATE SUBSTITUTE FOR A WRITTEN REPORT

B

IN APPRAISAL, "MARKET VALUE" IS MOST COMMONLY IDENTIFIED WITH A. VALUE IN USE B. VALUE IN EXCHANGE C. ASSESSED VALUE D. LISTING VALUE E. NONE OF THE ABOVE

B

IN APPRAISING, THE MOST IMPORTANT JUDGMENT IS PROBABLY CALLED FOR IN A. PROJECTING SELLING RATES B. RECONCILING VALUE INDICATIONS C. SELECTING GOOD COMPARABLE DATA D. PERFORMING NEIGHBORHOOD ANALYSIS E. MAKING RENTAL MARKET ESTIMATES

B

IN ESTIMATING SITE VALUE, THE DIRECT SALES COMPARISON APPROACH A. DOES NOT APPLY TO OLDER RESIDENCES B. IS THE MOST RELIABLE METHOD AVAILABLE C. IS CONSIDERED INFERIOR TO OTHER METHODS UNIMPROVED D. IS USED ONLY WHEN THE SUBJECT PROPERTY IS UNIMPROVED E. IS USED FOR REAL ESTATE BUT NOT FOR PERSONAL PROPERTY APPRAISALS

B

IN PREPARING AN APPRAISL, DEFINITION OF THE PROBLEM IDENTIFIES ALL OF THE FOLLOWING EXCEPT A. THE REAL ESTATE BEING APPRAISED B. THE HIGHEST AND BEST USE OF THE PROPERTY C. THE REAL PROPERTY RIGHTS D. THE DATE OF THE VALUE ESTIMATE E. THE USE TO WHICH THE APPRAISAL WILL BE PUT

B

KNOWLEDGE OF LAND VALUE IS REQUIED FOR ALL OF THE FOLLOWING EXCEPT A. CONDEMNATION ACTIONS B. FIRE INSURANCE C. PROPERTY TAXATION D. A GROUND LEASE E. A GRAZING LEASE

B

MARKET PRICE IS THE AMOUNT FOR WHICH A PROPERTY A. SHOULD SELL B. WAS SOLD C. WILL SELL D. COULD SELL E. WOULD BE APPRAISED

B

REAL PROPERTY IS DEFINED AS A. LEASED AND UNLEASED SPACE B. RIGHTS IN REALTY C. LAND AND ALL IMPROVEMENTS D. THE RIGHT TO USE OR OCCUPY REAL ESTATE E. REALTY

B

SOCIAL, ECONOMIC, GOVERNMENTAL, AND ENDIRONMENTAL INFLUENCES THAT AFFECT PROPERTY VALUE ARE CALLED A. LAWS B. FORCES C. FACTORS D. CONSEQUENCES E. IMPACTS

B

STANDARDIZED RESIDENTIAL FORM REPORTS A. ARE ADEQUATE FOR ALL APPRAISALS B. MAY NOT BE AS DETAILED OR COMPLETE AS WRITTEN REPORTS C. ARE SELDOM ADEQUATE FOR APPRAISALS D. ALLOW LITTLE SPACE FOR NEIGHBORHOOD ANALYSIS E. ARE DIFFICULT TO COMPUTERIZE

B

THE APPRAISER'S FINAL VALUE ESTIMATE SHOULD BE BASED ON A. AN AVERAGE OF THE THREE VALUE INDICATIONS GIVEN BY THE THREE APPROACHES TO VALUE B. A WEIGHING OF THE RELIABILITY OF THE INFORMATION ANALYZED IN EACH OF THE THREE APPROACHES TO VALUE C. AN AVERAGE OF THE VALUES IN THE THREE CLOSEST COMPARABLE SALES D. THE CORRELATION TECHNIQUE E. ADJUSTMENTS FOR THE MOST RECENT INDICATORS IN THE LOCAL MARKET

B

THE FACT THAT THE VALUE OF A PROPERTY TENDS TO EQUAL THE COST OF AN EQUALLY DESIRABLE SUBSTITUTE IS AN EXAMPLE OF THE PRINCIPLE OF A. BALANCE B. SUBSTITUTION C. CONTRIBUTION D. DIMINISHING RETURNS E. SUPPLY AND DEMAND

B

THE FUNDAMENTAL VALUATION PRINCIPLE UNDERLYING THE SALES COMPARISON PROCESS IS A. CONTRIBUTION B. SUBSTITUTION C. CONFORMITY D. CHANGE E. ANTICIPATION

B

THE HIGHEST AND BEST USE OF A SITE IS ITS A. EXISTING USE B. THE USE THAT IS PHYSICALLY AND LEGALLY POSSIBLE AND PROVIDES THE HIGHEST FINANCIAL RETURN C. IMMEDIATE NEXT USE D. ORDINARY AND NECESSARY USE E. LEAST EXPENSIVE USE

B

THE PRINCIPLE OF SUBSTITUTION HOLDS THAT A PURCHASER WILL PAY NO MORE FOR A PROPERTY THAN A. THE MAXIMUM HE CAN AFFORD B. THE COST OF ACQUIRING AN EQULLY DESIRABLE SUBSTITUTE C. THE PRICE OF A PREVIOUSLY OWNED PROPERTY D. THE PRICE OF A PROPERTY WITH GREATER UTILITY E. NONE OF THE ABOVE

B

THE REQUIREMENT TO VERIFY DATA IN AN APPRAISAL REPORT VARIES ACCORDING TO A. THE APPRAISER'S "GUT FEELINGS" ABOUT THE RELIABILITY OF THE DATA B. THE PURPOSE AND INTENDED USE OF THE APPRAISAL REPORT C. LEGAL RESTRICTIONS ON THE PROPERTY D. THE TYPE OF VALUE BEING SOUGHT E. THE USE TO WHICH THE PROPERTY HAS BEEN PUT

B

THE TERM IMPROVEMENTS TO REAL ESTATE REFERS TO A. BUILDINGS ONLY B. BUILDINGS, FENCES, WALKWAYS, ETC. C. TREES AND BUILDINGS D. ALL OF THE ABOVE E. NONE OF THE ABOVE

B

THE VALUE OF REAL ESTATE IS DETERMINED IN THE MARKET MAINLY BY ITS A. PRICE B. PRODUCTIVITY C. MORTGAGE D. SIZE E. HEIGHT

B

TO ESTIMATE MARKET VALUE, AN APPRAISER FOLLOWS THE A. APPRAISAL REPORT B. VALUATION PROCESS C. EVALUATION METHODOLOGY D. APPRAISAL GUIDELINES E. REPORT EVOLUTION TECHNIQUE

B

WHICH OF THE FOLLOWING EXHIBITS IS LEAST REQUENTLY USED IN AN APPRAISAL? A. A PHOTOGRAPH OF THE SUBJECT PROPERTY B. AN AERIAL PHOTOGRAPH OF THE SURROUNDING AREA C. A PLOT PLAN D. A FLOOR PLAN E. A PHOTOGRAPH OF A COMPARABLE PROPERTY

B

WHICH TYPE OF STUDIES TEST THE ABILITY OF VARIOUS PROPOSED IMPROVEMENTS TO MEET INVESTMENT OBJECTIVES? A. MARKET B. FEASIBILITY C. MARKETABILITY D. COST-BENEFIT E. PROSPECTUS

B

A DECREASE IN LAND VALUE IS THE RESULT OF A. FUNCTIONAL OBSOLESCENSE B. PHYSICAL DETERIORATION C. MARKET FORCES D. WEAR AND TEAR E. OBSOLESCENCE

C

A GROSS RENT MULTIPLIER IS OFTEN USED IN THE A. DIRECT SALES COMPARISON APPROACH FOR SINGLE-FAMILY HOUSING B. INCOME APPROACH FOR INCOME PROPERTY C. INCOME APPROACH FOR SINGLE-FAMILY PROPERTY D. COST APPROACH E. BACK-DOOR APPROACH TO VALUATION

C

A MARKET VALUE ESTIMATE PROVIDED IN AN APPRAISAL A. CHANGES WITH THE USE TO WHICH IT IS PUT B. CHANGES WITH THE FUNCTION OF THE APPRAISAL C. REMAINS THE SAME REGARDLESS OF WHOM THE APPRAISAL IS PRAPARED FOR D. DEPENDS UPON THE USE OR FUNCTION OF THE APPRAISAL E. ALWAYS REFLECTS MARKET VALUE

C

A PROPERTY'S IMMEDIATE ENVIRONMENT IS A. ITS PIVOTAL POINT B. A "COMP" GRID C. A NEIGHBORHOOD D. THE ADJACENT USES E. A NATURAL BOUNDARY

C

AN "AS OF" DATE IS SPECIFIED IN APPRAISALS TO A. SHOW WHEN THE APPRAISER ISPECTED THE PROPERTY B. INDICATE THE PREVAILING PRICE LEVEL C. INDICATE THE MARKET CONDITIONS ON WHICH THE VALUE IS ESTIMATED D. INDICATE WHEN THE BUYER AGREED TO PURCHASE THE PROPERTY E. INDICATE THE VALUE AS OF THE CLOSING DATE

C

AN IMPROVEMENT'S REMAINING ECONOMIC LIFE IS A. ITS CHRONOLOGICAL AGE B. ITS EFFECTIVE AGE C. THE FUTURE TIME SPAN OVER WHICH THE IMPROVEMENT IS EXPECTED TO GENERATE BENEFITS D. ITS EFFECTIVE AGE MINUS ITS CHRONOLOGICAL AGE E. ITS EFFECTIVE AGE PLUS ITS CHRONOLOGICAL AGE

C

ASSESSED VALUE IS USUALLY BASED ON A. COST VALUE B. BOOK VALUE C. MARKET VALUE D. INSURABLE VALUE E. REPLACEMENT COST

C

BEFORE RECONCILIATION THE APPRAISER SHOULD A. REINSPECT THE SUBJECT PROPERTY B. EVALUATE THE RELIABLITY OF EACH APPROACHTO VALUE C. REVIEW THE OVERALL APPRASAL PROCESS AND CHECK FOR TECHNICAL ACCURACY D. SEEK THE PROPETY OWNER'S OPINION E. AVERAGE THE RESULTS FROM THE APPROACHES USED

C

IF THE TYPICAL OCCUPANCY RATE IN AN AREA IS 95 PERCENT, WHAT CONCLUSION WOULD YOU MOST LIKELY DRAW ABOUT A SUBJECT PROPERTY THAT HAS 100 PERCENT OCCUPANCY? A. ADVERTISING IS AVERAGE. B. THE RENTS ARE HIGH. C. THE RENTS ARE LOW. D. MANAGEMENT IS INCOMPETENT. E. NEW CONSTRUCTION WILL OCCUR SOON.

C

IN WHICH MARKET ARE THERE MANY POTENTIAL BUYERS BUT FEW PROPERTIES AVAILABLE A. DEMAND B. BUYER'S C. SELLER'S D. LOW-PRICED E. NORMAL

C

MORTGAGE VALUE IS SYNONYMOUS WITH A. MARKET PRICE B. LIQUIDATION VALUE C. MARKET VALUE D. ASSESSED VALUE E. INSURABLE VALUE

C

SINCE EACH VALUE APPROACH HAS ITS OWN STRENGTHS AND WEAKNESSES, AN APPRAISER SHOULD A. CHOOSE THE APPROACH THAT IS THE MOST POPULAR WITH LENDERS B. CHOOSE THE APPROACH THAT IS THE MOST POPULAR WITH BUYERS C. WEIGH THE STRENGTHS AND WEAKNESSES OF EACH APPROACH AND DECIDE WHICH IS THE MOST RELIABLE FOR THE SUBJECT PROPERTY D. WEIGHT EACH APPROACH EQUAALLY E. USE THE APPROACH THAT THE CLIENT FEELS IS MOST APPROPRIATE

C

THE BEST ASSURANCE OF APPRAISAL ACCURACY RESULTS FROM THE USE OF A. THE GREATEST NUMBER OF ADJUSTMENTS B. A GROSS DOLLAR AMOUNT OF ADJUSTMENTS C. A LARGE NUMBER OF GTRULY COMPARABLE PROPERTIES D. A NET DOLLAR AMOUNT OF ADJUSTMENTS E. MARKET SEGMENTATION

C

THE COST APPROACH IS OFTEN GIVEN MORE WIGHT IN THE APPRAISL OF A. OLD OR OBSOLETE BUILDINGS B. SINGLE-FAMILY HOUSES MORE THAN 10 YEARS OLD C. NEW BUILDINGS OR SPECIAL-USE BUILDINGS D. COMMERCIAL AND INDUSTRIAL PROPERTIES E. VACAN LAND

C

THE LENGTH OF A TRACT OF LAND ALONG A STREET IS CALLED THE LAND'S A. DEPTH B. WIDTH C. FRONTAGE D. ABUTMENT E. LINEAGE

C

THE LIFE CYCLE OF A NEIGHBORHOOD ILLUSTRATES THE PRINCIPLE OF A. SUBSTITUTION B. HIGHEST AND BEST USE C. CHANGE D. CONFORMITY E. ANTICIPATION

C

THE MOST IMPORTANT ITEM AN APPRAISER NEEDS FOR RECORDING DATA DURING A BUILDING INSPECTION IS A A. PLAT MAP B. TAPE MEASURE C. CHECKLIST D. CLIPBOARD E. RULER

C

THE PERIOD OVER WHICH A BUILDING MAY BE PROFITABLY USED IS ITS A. ACTUAL LIFE B. PHYSICAL LIFE C. USEFUL LIFE D. NORMAL LIFE E. EFFECTIVE AGE

C

THE PRIMARY ECONOMIC DISTINGUISHING CHARACTERISTIC OF LAND IS A. HOMOGENEITY B. HIGH COST C. IMMOBILITY D. SLOW DEPRECIATIN E. NO DEPRECIATION

C

THE THREE APPROACHES TO ESTIMATING VALUE ARE A. COST, INCOME, AND REPLACEMENT B. REPLACEMENT, INCOME, AND REPRODUCTION C. COST, DIRECT SALES COMPARISON, AND INCOME CAPITALIZATION D. REPRODUCTION, COST, AND INCOME E. MARKET, BUILDING RESIDUAL, AND MULTIPLIER

C

WHICH APPROACH WOULD BE BEST WHEN APPRAISING A 15- TO 20-YEARD-OLD HOUSE? A. COST B. FEASIBILITY STUDY C. SALES COMPARISON D. INCOME CAPITALIZATION E. REPLACEMENT COST NEW LESS ACCRUED DEPRECIATION

C

WHICH OF THE FOLLOWING IS THE LONGEST AND MOST DETAILED TYPE OF APPRAISAL REPORT? A. RESTRICTED-USE B. SUMMRY C. SELF-CONTAINED D. ORAL E. DETAILED

C

WHICH PRINCIPLE OF VALUE BEST AFFIRMS THAT THE MAXIMUM VALUE OF A PROPERTY GENERALLY CANNOT EXCEED THE COST OF ITS REPLACEMENT? A. INCREASING AND DECREASING RETURNS B. SUPPLY AND DEMAND C. SUBSTITUTION D. BALANCE E. ANTICIPATION

C

AN APPRAISAL OF REAL ESTATE A. GUARANTEES ITS VALUE B. ASSURES ITS VALUE C. DETERMINES ITS VALUE D. ESTIMATES ITS VALUE E. SEGMENTS ITS VALUE

D

COMMERCIAL REAL ESTATE APPRAISERS ARE MOST FREQUENTLY ASED TO ESTIMATE A. ASSESSED VALUE B. LIQUIDATION VALUE C. INSURABLE VALUE D. MARKET VALUE E. INTRINSIC VALUE

D

DURING THE RECONCILIATION PROCESS, AN APPRAISER SHOULD ASK: A. HOW APPROPRIATE IS EACH APPROACH? B. HOW ADEQUATE ARE THE DATA? C. WHAT RANGE OF VALUES DO THE APPROACHES SUGGEST? D. ALL OF THE ABOVE E. A AND C ONLY

D

GROSS RENT MULTIPLIER ANALYSIS IS A. REQUIRED IN ALMOST EVERY RESIDENTIAL APPRAISAL B. APPLICABLE TO EVERY RESIDENTIAL APPRAISAL C. APPLICABLE TO RESIDENTIAL PROPERTY VALUATION ONLY D. PART OF THE DIRECT SALES COMPARISON APPROACH TO VALUATION OF COMMERCIAL PROPERTIES E. SELDOM USED FOR HOUSES

D

IN AN OPEN MARKET TRANSACTION, THE SUBJECT PROPERTY SOLD WOULD NOT BE A. LISTED FOR AT LEAST 30 DAYS B. LISTED ON A MULTIPLE LISTING SERVICE C. ADVERTISED IN LOCAL NEWSPAPERS D. SOLD TO A RELATIVE E. CLOSED BY A TITLE COMPANY

D

IN APPRAISING A DWELLING BUILT 50 YEARS AGO, THE APPRAISER USUALLY RELIES ON THE A. CURRENT REPRODUCTION COST B. ORIGINAL CONSTRUCTION COST C. CURRENT REPLACEMENT COST D. DIRECT SALES COMPARISON APPROACH E. SUPERIOR CONSTRUCTION TECHNIQUE

D

IN APPRAISING, THE DATA REQUIREMENTS ARE SET BY THE A. CLIENT B. LENDER C. SELLER D. APPRAISAL PROBLEM E. APPRAISER

D

IN ESTIMATING CURRENT MARKET VALUE, AN APPRAISER ASSUMES ALL OF THE FOLLOWING EXCEPT THAT: A. THE BUYER IS TYPICALLY MOTIVATED. B. THE PARTIES ARE KNOWLEDGEABLE. C. A REASONABLE TIME WILL BE ALLOWED FOR MARKET EXPOSURE. D. THE PROPERTY WILL BE MARKETED BY A PROFESSIONAL EXPERT. E. THE PROPERTY WILL BE SOLD FOR CASH OR EQUIVALENT TERMS.

D

IN WHICH MARKET IS THE DIRECT SALES COMPARISON APPROACH MOST APPLICABLE? A. SELLER'S B. BUYER'S C. REASONALBLE D. ACTIVE E. CALM

D

INVESTMENT VALUE IS BEST DESCRIBED AS A. MARKET PRICE B. MARKET VALUE C. THE COST OF ACQUIRING A COMPETITIVE STUBSTITUTE PROPERTY WITH THE SAME UTILITY D. THE PRESENT WORTH OF ANTICIPATED FUTURE BENEFITS TO A CERTAIN INDIVIDUAL OR INSTITUTIONAL INVESTOR E. VALUE IN EXCHANGE

D

ONE WAY IN WHICH LAND MAY BE LEGALLY DESCRIBED IS BY A. HIGHEST AND BEST USE B. ACREAGE C. MAILING ADDRESS D. METES AND BOUNDS E. FRONT FOOTAGE

D

THE HIGHEST AND BEST USE OF LAND AS IF VACANT FORMS PART OF THE BASIS FOR A. MORTGAGE EQUITY ANALYSIS B. A PROPERTY RIGHTS ADJUSTMENT C. AN OPERATING EXPENSE ESTIMATE D. THE COST APPROACH E. THE SQUARE FOOTAGE APPROACH

D

THE LIVABLE SQUARE FOOTAGE OF A SINGLE-FAMILY RESIDENCE IS USUALLY MEASURED FROM THE A. TOTAL INTERIOR (INCLUDING INTERIOR WALLS) B. INSIDE ROOM DIMENSIONS C. INTERIOR PLUS BASEMENT D. EXTERIOR E. EXTERIOR, WITH ADJUSTMENT FOR WALL WIDTH

D

THE MOST COMPLETE INTEREST IN REAL PROPERTY IS A. FEE TAIL B. JOINT TENANCY C. TENANCY IN COMMON D. FEE SIMPLE E. LIFE ESTATE PUR AUTRE VIE

D

THE NUMBER OF SQUARE FEET IN 1 ACRE IS A. 64,000 B. 460 C. 440 D 43,560 E. 34,560

D

URBAN LAND DERIVES ITS VALUE PRIMARILY FROM ITS A. SIZE B. NATURAL BEAUTY C. CONCENTRATION OF POPULATION D. LOCATION E. BUILDINGS

D

WHAT PRINCIPLE STATES THAT VALUE LEVELS ARE SUSTAINED WHEN THE VARIOUS ELEMENTS IN AN ECONOMIC OR ENVIRONMENTAL MIX ARE IN EQUILIBRIUM? A. ANTICIPATION B. EQUIVALENCE C. SUBSTITUTION D. BALANCE E. HIGHEST AND BEST USE

D

WHICH OF THE FOLLOWING EXPIRES UPON THE OWNER'S DEATH? A. FEE TAIL B. REMAINDER INTEREST C. SIMPLE INTEREST D. LIFE ESTATE E. ESTATE FOR YEARS

D

WHICH PRINCIPLE OF VALUE BEST AFFIRMS THAT VALUE IS THE PRESENT WORTH OF ESPECTED FUTURE BENEFITS? A. SUPPLY AND DEMAND B. BALANCE C. SUBSTITUTION D. ANTICIPATION E. CONFORMITY

D

A PERFECT MAKET OCCURS WHEN A. THERE ARE NUMEROUS BUYERS AND SELLERS WHO ARE KNOWLEDGEABLE AND FREE TO TRADE B. ALL PRODUCTS ARE INTERCHANGEABLE AND CAN BE TRANSPORTED TO BETTER MARKETS C. THE GOVERNMENT ALLOCATES SUPPLY AND DEMAND PERFECTLY D. ALL OF THE ABOVE E. A AND B ONLY ARE TRUE

E

COMPARED WITH OTHER ASSETS, REAL ESTATE IS A. IMMOBILE B. EXPENSIVE C. LONG-LIVED D. MORTGAGEABLE E. ALL OF THE ABOVE

E

EMINENT DOMAIN REQUIRES A. APPRAISAL PROCESSES FOR THE ESTIMATION OF REAL PROPERTY VALUE B. JUST COMPENSATION FOR SPECIFIC TYPES OF FINANCIAL LOSS C. DUE PROCESS FOR THE TAKING OF PROPERTY THROUGH CONDEMNATION D. BOTH A AND B E. BOTH B AND C

E

IN RECONSILIATION AND CONCLUSION OF VALUE, THE APPRAISER SHOULD A. DESCRIBE THE RELEVANCE OF EACH VALUE APPROACH EXPLORED B. DISCUSS THE RELIABILITY OF THE DATE USED C. PROVIDE ARGUMENTS TO JUSTIFY HIS OR HER FINAL CONCLUSION OF VALUE D. EXPLAIN HIS OR HER JUDGMENTS AND REASONING E. DO ALL OF THE ABOVE

E

LOAN VALUE IS THE SAME AS A. INVESTMENT VALUE B. MARKET PRICE C. REPLACEMENT VALUE D. BOOK VALUE E. MARKET VALUE

E

PHYSICAL UNITS OF COMPARISON INCLUDE A. SEATS IN A THEATER B. ROOMS IN A HOTEL C. SQUARE FEET OF A HOUSE D. CUBIC FEET OF A WAREHOUSE E. ALL OF THE ABOVE

E

REALTY IS BEST DEFINED AS RIGHTS IN A. LAND B. IMPROVEMENTS ON AND TO LAND C. BUILDINGS D. FIXTURES E. REAL ESTATE

E

RESIDENTIAL APPRAISERS GENERALLY PROVIDE AN ESTIMATE OF A. MARKET PRICE B. MORTGAGE LOAN VALUE C. CASH VALUE D. ASSESSED VALUE E. MARKET VALUE

E

RIGHTS OF CONDEMNATION ARE HELD BY A A. STATE GOVERNMENT AGENCY B. LOCAL AGENCY OR AUTHORITY REPRESENTING A FEDERAL GOVERNMENT AGENCY C. UTILITY COMPANY D. SMALL MUNICIPALITY E. ALL OF THE ABOVE

E

THE CRITERIA FOR DETERMINING HIGHEST AND BEST USE INCLUDE ALL OF THE FOLLOWING EXCEPT A. PHYSICAL POSSIBILITY B. FINANCIAL FEASIBILITY C. LEGAL PERMISSIBILITY D. MAXIMAL PRODUCTIVITY E. EFFECT ON COMMUNITY WELFARE

E

THE DATE REQUIRED FOR AN APPRAISAL ASSIGNMENT ARE ESTABLISHED BY THE A. LENDING ASSOCIATION B. APPRAISER C. BUYER D. OFFICE OF THRIFT SUPERVISION E. NATURE OF THE APPRAISAL PROBLEM

E

THE FUNCTION(S) OF A REAL ESTATE MARKET IS (ARE) TO A. FACILITATE EXCHANGES B. SET PRICES C. ALLOCATE RESOURCES D. ADJUST SUPPLY TO DEMAND E. ALL OF THE ABOVE

E

THE IMPORTANT REASON(S) FOR INSPECTING AND ANALYZING THE SUBJECT SITE IS (ARE) TO A. ASCERTAIN ITS HIGHEST AND BEST USE B. NOTE ANY UNSUAL CHARACTERISTICS C. FIND COMPARABLE SALES D. BE CERTAIN THE PROPERTY EXISTS E. ALL OF THE ABOVE

E

THE MINIMUM NUMBER OF COMPARABLE SALES NEEDED TO APPLY DIRECT SALES COMPARISON IS A. 3 B. 4 C. 10 D. 30 E. NO SET NUMBER`

E

THE TRULY DISTINGUISHING CHARACTERISTIC OF REAL ESTATE AS COMPARED WITH OTHER ASSETS IS A. LARGE SIZE B. LONG LIFE C. HIGH PRICE D. UNIQUENESS E. FIXED LOCATION

E

VALUE INDICATIONS ARE RECONCILED INTO A FINAL VALUE ESTIMATE A. THROUGHOUT THE APPRAISAL B. AFTER THE REPORT OF DEFINED VALUE C. AFTER EACH APPROACH IS COMPLETED D. AT THE PRELIMINARY STAGE TO LET THE CLIENT E. AFTER ALL THREE APPROACHES HAVE BEEN COMPLETED

E

WHICH OF THE FOLLOWING IS A BASIC COMPONENT OF VALUE? A. UTILITY B. SCARCITY C. DEMAND COUPLED WITH PURCHASING POWER D. TRANSFERABILITY E. ALL OF THE ABOVE

E

ZONING AND ENVIRONMENTAL PROTECTION REGULATIONS REPRESENT THE EXERCISE OF A. LAND USE POLITICS B. PUBLIC USE C. ESCHEAT D. EMINENT DOMAIN E. POLICE POWER

E