Question 1

Adjustments for advantageous financing would be made in the

Accepted Answer

A)  market comparison approach to appraisal. 
B)  cost approach to appraisal. 
C)  income approach to appraisal. 
D)  revised market price. 
A)  market comparison approach to appraisal. 
B)  cost approach to appraisal. 
C)  income approach to appraisal. 
D)  revised market price. A

Question 2

The process of combining two or more parcels of land into one larger parcel is called ____________________.

Accepted Answer

assemblage

Question 3

A popular market comparison method that is used when a property produces income is the gross rent ____________________, or GRM.

Accepted Answer

multiplier

Question 4

The best way for an appraiser to find the actual age of a residence is to check the tax assessor's records.

Accepted Answer

A) True 
 B)False

Question 5

The average assessed value of three comparable homes is likely to be the highest in value.

Accepted Answer

A) True 
 B)False

Question 6

The owner of a beautiful old house was told that because of the location of the property, bordered by two very busy streets, that it would have more value if the house was torn down and the empty lot put on the market. This is an example of highest and best use.

Accepted Answer

A) True 
 B)False

Question 7

Choose the one most appropriate answer for each.
-gross income less operating expenses, vacancies, and credit losses

Accepted Answer

A) adjustments 
B) appraisal 
C) buyer's market 
D) capitalize 
E) comparables
F)cost approach
G)curable depreciation
H)depreciation
I)functional obsolescence
J)gross rent multiplier (GRM)
K)highest and best use
L)income approach
M)incurable depreciation
N)market approach
O)net operating income (NOI)
P)operating expenses
Q)physical deterioration
R)reproduction cost
S)scheduled gross income
T)subject property 
A) adjustments 
B) appraisal 
C) buyer's market 
D) capitalize 
E) comparables
F)cost approach
G)curable depreciation
H)depreciation
I)functional obsolescence
J)gross rent multiplier (GRM)
K)highest and best use
L)income approach
M)incurable depreciation
N)market approach
O)net operating income (NOI)
P)operating expenses
Q)physical deterioration
R)reproduction cost
S)scheduled gross income
T)subject property

Question 8

Social obsolescence would be an example of physical deterioration.

Accepted Answer

A) True 
 B)False

Question 9

After all adjustments are made to a comparable property, its comparative value for appraisal purposes is known as its

Accepted Answer

A)  adjusted market price. 
B)  indicated market value. 
C)  amended market value. 
D)  revised market price. 
A)  adjusted market price. 
B)  indicated market value. 
C)  amended market value. 
D)  revised market price.

Question 10

The value of vacant land is commonly stated in any of the following terms EXCEPT value per

Accepted Answer

A)  square foot. 
B)  acre. 
C)  front foot. 
D)  square yard. 
A)  square foot. 
B)  acre. 
C)  front foot. 
D)  square yard.

Question 11

In appraising an historically significant Victorian era residence using the cost approach, the will probably appraise it on the basis of its reproduction cost.

Accepted Answer

A) True 
 B)False

Question 12

The property to be appraised is known as the ____________________ property.

Accepted Answer

The answer of The property to be appraised is known...

Question 13

Choose the one most appropriate answer for each.
-properties similar to the subject property that have sold recently

Accepted Answer

A) adjustments 
B) appraisal 
C) buyer's market 
D) capitalize 
E) comparables
F)cost approach
G)curable depreciation
H)depreciation
I)functional obsolescence
J)gross rent multiplier (GRM)
K)highest and best use
L)income approach
M)incurable depreciation
N)market approach
O)net operating income (NOI)
P)operating expenses
Q)physical deterioration
R)reproduction cost
S)scheduled gross income
T)subject property 
A) adjustments 
B) appraisal 
C) buyer's market 
D) capitalize 
E) comparables
F)cost approach
G)curable depreciation
H)depreciation
I)functional obsolescence
J)gross rent multiplier (GRM)
K)highest and best use
L)income approach
M)incurable depreciation
N)market approach
O)net operating income (NOI)
P)operating expenses
Q)physical deterioration
R)reproduction cost
S)scheduled gross income
T)subject property

Question 14

Choose the one most appropriate answer for each.
-to estimate the value of something

Accepted Answer

A) adjustments 
B) appraisal 
C) buyer's market 
D) capitalize 
E) comparables
F)cost approach
G)curable depreciation
H)depreciation
I)functional obsolescence
J)gross rent multiplier (GRM)
K)highest and best use
L)income approach
M)incurable depreciation
N)market approach
O)net operating income (NOI)
P)operating expenses
Q)physical deterioration
R)reproduction cost
S)scheduled gross income
T)subject property 
A) adjustments 
B) appraisal 
C) buyer's market 
D) capitalize 
E) comparables
F)cost approach
G)curable depreciation
H)depreciation
I)functional obsolescence
J)gross rent multiplier (GRM)
K)highest and best use
L)income approach
M)incurable depreciation
N)market approach
O)net operating income (NOI)
P)operating expenses
Q)physical deterioration
R)reproduction cost
S)scheduled gross income
T)subject property

Question 15

Choose the one most appropriate answer for each.
-that use of a parcel of land that will produce the greatest current value for the parcel

Accepted Answer

A) adjustments 
B) appraisal 
C) buyer's market 
D) capitalize 
E) comparables
F)cost approach
G)curable depreciation
H)depreciation
I)functional obsolescence
J)gross rent multiplier (GRM)
K)highest and best use
L)income approach
M)incurable depreciation
N)market approach
O)net operating income (NOI)
P)operating expenses
Q)physical deterioration
R)reproduction cost
S)scheduled gross income
T)subject property 
A) adjustments 
B) appraisal 
C) buyer's market 
D) capitalize 
E) comparables
F)cost approach
G)curable depreciation
H)depreciation
I)functional obsolescence
J)gross rent multiplier (GRM)
K)highest and best use
L)income approach
M)incurable depreciation
N)market approach
O)net operating income (NOI)
P)operating expenses
Q)physical deterioration
R)reproduction cost
S)scheduled gross income
T)subject property

Question 16

That a dollar should be invested only when it will return more than a dollar's worth of benefits is called the principle of

Accepted Answer

A)  conformity. 
B)  supply and demand. 
C)  contribution. 
D)  highest and best use. 
A)  conformity. 
B)  supply and demand. 
C)  contribution. 
D)  highest and best use.

Question 17

From the viewpoint of a qualified appraiser, the value of the subject property is most affected by its highest and best use.

Accepted Answer

A) True 
 B)False

Question 18

Choose the one most appropriate answer for each.
-depreciation resulting from wear and tear of the improvements

Accepted Answer

A) adjustments 
B) appraisal 
C) buyer's market 
D) capitalize 
E) comparables
F)cost approach
G)curable depreciation
H)depreciation
I)functional obsolescence
J)gross rent multiplier (GRM)
K)highest and best use
L)income approach
M)incurable depreciation
N)market approach
O)net operating income (NOI)
P)operating expenses
Q)physical deterioration
R)reproduction cost
S)scheduled gross income
T)subject property 
A) adjustments 
B) appraisal 
C) buyer's market 
D) capitalize 
E) comparables
F)cost approach
G)curable depreciation
H)depreciation
I)functional obsolescence
J)gross rent multiplier (GRM)
K)highest and best use
L)income approach
M)incurable depreciation
N)market approach
O)net operating income (NOI)
P)operating expenses
Q)physical deterioration
R)reproduction cost
S)scheduled gross income
T)subject property

Question 19

If an appraiser felt some comparable sales were better indicators of value than other comparables, he would assign more weight to them in the

Accepted Answer

A)  adjusted sales price. 
B)  correlation process. 
C)  4-3-2-1- rule. 
D)  replacement cost approach. 
A)  adjusted sales price. 
B)  correlation process. 
C)  4-3-2-1- rule. 
D)  replacement cost approach.

Question 20

When the appraiser has decided to use the market approach, which of the following conditions would disqualify a sale as a fair market value transaction?

Accepted Answer

A)  Low down payment followed by below-average interest rates on the balance due 
B)  Seller who was not in a hurry to sell 
C)  VA sale 
D)  Neighbor's house sold for a higher amount 
A)  Low down payment followed by below-average interest rates on the balance due 
B)  Seller who was not in a hurry to sell 
C)  VA sale 
D)  Neighbor's house sold for a higher amount

Exam 17: Real Estate Appraisal

Adjustments for advantageous financing would be made in the

The process of combining two or more parcels of land into one larger parcel is called ____________________.

A popular market comparison method that is used when a property produces income is the gross rent ____________________, or GRM.

The best way for an appraiser to find the actual age of a residence is to check the tax assessor's records.

The average assessed value of three comparable homes is likely to be the highest in value.

The owner of a beautiful old house was told that because of the location of the property, bordered by two very busy streets, that it would have more value if the house was torn down and the empty lot put on the market. This is an example of highest and best use.

Choose the one most appropriate answer for each. -gross income less operating expenses, vacancies, and credit losses

Social obsolescence would be an example of physical deterioration.

After all adjustments are made to a comparable property, its comparative value for appraisal purposes is known as its

The value of vacant land is commonly stated in any of the following terms EXCEPT value per

In appraising an historically significant Victorian era residence using the cost approach, the will probably appraise it on the basis of its reproduction cost.

The property to be appraised is known as the ____________________ property.

Choose the one most appropriate answer for each. -properties similar to the subject property that have sold recently

Choose the one most appropriate answer for each. -to estimate the value of something

Choose the one most appropriate answer for each. -that use of a parcel of land that will produce the greatest current value for the parcel

That a dollar should be invested only when it will return more than a dollar's worth of benefits is called the principle of

From the viewpoint of a qualified appraiser, the value of the subject property is most affected by its highest and best use.

Choose the one most appropriate answer for each. -depreciation resulting from wear and tear of the improvements

If an appraiser felt some comparable sales were better indicators of value than other comparables, he would assign more weight to them in the

When the appraiser has decided to use the market approach, which of the following conditions would disqualify a sale as a fair market value transaction?

Nature and Description of Real Estate

Rights and Interests in Land

Forms of Ownership

Transferring Title

Recordation Abstracts and Title Insurance

Contract Law

Real Estate Sales Contracts

Mortgage and Note

Deed of Trust

Lending Practices

The Loan and the Consumer

Sources of Financing

Types of Financing

Taxes and Assessments

Title Closing and Escrow

Real Estate Leases

Licensing Laws and Professional Affiliation

The Principal-Broker Relationship: Employment

The Principal-Broker Relationship: Agency

Fair Housing, Ada, Equal Credit, and Community Reinvestment

Condominiums, Cooperatives, Puds, and Timeshares

Property Insurance

Land-Use Control

Real Estate and the Economy

Investing in Real Estate

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