Question 1

In making an appraisal by the market comparison approach, an appraiser should

Accepted Answer

A)  consider the physical and economic features of the subject property. 
B)  consider the yield of the subject's property with competitive rates of return. 
C)  make adjustments to the value of the subject property with competitive rates of return. 
D)  utilize comparable listings withdrawn from the market. 
A)  consider the physical and economic features of the subject property. 
B)  consider the yield of the subject's property with competitive rates of return. 
C)  make adjustments to the value of the subject property with competitive rates of return. 
D)  utilize comparable listings withdrawn from the market.

Question 2

Loss of value of a structure because it is in a deteriorating neighborhood would be called economic obsolescence.

Accepted Answer

A) True 
 B)False

Question 3

Choose the one most appropriate answer for each.
-corrections made to comparable properties to account for differences between them and the subject property

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 4

A residential lot purchased 3 years ago for $10,000 has doubled in value. The house on the lot cost $40,000 and it increased $20,000 in value. If the house and lot are sold at market value today, how much profit will be realized?

Accepted Answer

A)  $30,000 
B)  $40,000 
C)  33 1/3% 
D)  100% 
A)  $30,000 
B)  $40,000 
C)  33 1/3% 
D)  100%

Question 5

To apply the market data approach, a real estate appraiser must collect all the following data on each comparable sale EXCEPT

Accepted Answer

A)  date of sale. 
B)  marketability of title. 
C)  financing terms. 
D)  sale price. 
A)  date of sale. 
B)  marketability of title. 
C)  financing terms. 
D)  sale price.

Question 6

Choose the one most appropriate answer for each.
-a number that is multiplied by a property's gross rents to produce an estimate of its worth

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 7

Choose the one most appropriate answer for each.
-loss in value due to deterioration and obsolescence

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

Which appraisal method would be most useful in appraising an unusual building which has a very limited and specific use?

Accepted Answer

A)  Cost approach 
B)  Net income 
C)  Capitalization 
D)  Market comparison 
A)  Cost approach 
B)  Net income 
C)  Capitalization 
D)  Market comparison

Question 9

The American Institute of Real Estate Appraisers issues the

Accepted Answer

A)  GRI designation. 
B)  MAI designation. 
C)  CPM designation. 
D)  MIA designation. 
A)  GRI designation. 
B)  MAI designation. 
C)  CPM designation. 
D)  MIA designation.

Question 10

The amount of money required to duplicate a property as of a certain date is called

Accepted Answer

A)  reproduction cost. 
B)  depreciation cost. 
C)  duplication approach. 
D)  capital improvement. 
A)  reproduction cost. 
B)  depreciation cost. 
C)  duplication approach. 
D)  capital improvement.

Question 11

Choose the one most appropriate answer for each.
-a method of valuing property based on the monetary return it is expected to produce

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 12

The operating expense ratio is

Accepted Answer

A)  operating expenses divided by effective gross income. 
B)  operating expenses divided by scheduled gross income. 
C)  operating expenses plus scheduled gross income divided by effective gross income. 
D)  reserves plus collection loss divided by effective gross income. 
A)  operating expenses divided by effective gross income. 
B)  operating expenses divided by scheduled gross income. 
C)  operating expenses plus scheduled gross income divided by effective gross income. 
D)  reserves plus collection loss divided by effective gross income.

Question 13

The basic support for validity of the market data approach to appraisal is willing buyers and willing sellers acting without undue pressure.

Accepted Answer

A) True 
 B)False

Question 14

The relationship between added cost and the value it returns is known as the principle of ____________________.

Accepted Answer

The answer of The relationship between added cost and the...

Question 15

The principle that holds that maximum value realized when a reasonable degree of homogeneity is present in a neighborhood is known as the principle of ____________________.

Accepted Answer

The answer of The principle that holds that maximum value...

Question 16

The term "scheduled gross" refers to projected gross income if fully leased.

Accepted Answer

A) True 
 B)False

Question 17

____________________ obsolescence is he loss of value due to external forces or events.

Accepted Answer

The answer of ____________________ obsolescence is he loss of value...

Question 18

An apartment building sells for $600,000 and has a gross rent multiplier of 6.0.how much annual rent does the building produce?

Accepted Answer

A)  $60,000 
B)  $100,000 
C)  $10,000 
D)  $36,000 
A)  $60,000 
B)  $100,000 
C)  $10,000 
D)  $36,000

Question 19

Depreciation resulting from outmoded design is classed as

Accepted Answer

A)  functional obsolescence. 
B)  physical deterioration. 
C)  economic obsolescence. 
D)  social obsolescence. 
A)  functional obsolescence. 
B)  physical deterioration. 
C)  economic obsolescence. 
D)  social obsolescence.

Question 20

Choose the one most appropriate answer for each.
-land value plus construction costs less depreciation

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

Exam 17: Real Estate Appraisal

In making an appraisal by the market comparison approach, an appraiser should

Loss of value of a structure because it is in a deteriorating neighborhood would be called economic obsolescence.

Choose the one most appropriate answer for each. -corrections made to comparable properties to account for differences between them and the subject property

A residential lot purchased 3 years ago for $10,000 has doubled in value. The house on the lot cost $40,000 and it increased $20,000 in value. If the house and lot are sold at market value today, how much profit will be realized?

To apply the market data approach, a real estate appraiser must collect all the following data on each comparable sale EXCEPT

Choose the one most appropriate answer for each. -a number that is multiplied by a property's gross rents to produce an estimate of its worth

Choose the one most appropriate answer for each. -loss in value due to deterioration and obsolescence

Which appraisal method would be most useful in appraising an unusual building which has a very limited and specific use?

The American Institute of Real Estate Appraisers issues the

The amount of money required to duplicate a property as of a certain date is called

Choose the one most appropriate answer for each. -a method of valuing property based on the monetary return it is expected to produce

The operating expense ratio is

The basic support for validity of the market data approach to appraisal is willing buyers and willing sellers acting without undue pressure.

The relationship between added cost and the value it returns is known as the principle of ____________________.

The principle that holds that maximum value realized when a reasonable degree of homogeneity is present in a neighborhood is known as the principle of ____________________.

The term "scheduled gross" refers to projected gross income if fully leased.

____________________ obsolescence is he loss of value due to external forces or events.

An apartment building sells for $600,000 and has a gross rent multiplier of 6.0.how much annual rent does the building produce?

Depreciation resulting from outmoded design is classed as

Choose the one most appropriate answer for each. -land value plus construction costs less depreciation

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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