CERTIFIED APPRAISAL EXAM
ANSWERS|LATEST !!!!2026|GRADED A+| (EXAM
Steps.
1. Determine Cost New
Main house 2400 SF x 85/SF =204,000
Garage 440 x 18/SF = 7920
======================================
204,000 + 92 = 211,920
2. Determine Depreciation Cost
Sale Price 240,000 -
Land Value 50,000 -
Improvements 25,000
========================
165,000
3. Determine Total Depreciation
Cost New 211,920 - Depreciation Cost 165,000 = 46,920
4. Determine Depreciation Percentage
Cost New 211,920/Total Depreciation 46,920 = 22.14% - ANSWER For the purpose
of estimating depreciation via the extraction method, you have utilized Comparable Sale #1,
which is a 2,400 sq. ft. home with a two-car, 440 sq. ft. attached garage, having a
replacement cost of $85/sq. ft. for gross living area and $18/sq. ft. for the garage area. This
1
,property sold for $240,000 and has a chronological age of 10 years. Through your research,
the indicated land value is $50,000 and the site improvements have a replacement cost of
$25,000. What is the percentage total amount of accrued depreciation indicated by this
sale?
Allocation: a method of estimating land value in which sales of improved properties are
analyzed to establish a typical ratio of site value to total property value and this ratio is
applied to the property being appraised or the comparable being analyzed.
Extraction: a method of estimating land value in which the depreciated cost of the
improvement on the improved property is estimated and deducted from the total sale price
to arrive at an estimated sale price for the land; most effective when the improvements
contribute little to the total sale price of the property. - ANSWER Allocation method
vs. extraction method
size - ANSWER Which is a physical force in relationship to value?
utilize the site as one home site, since the site cannot legally be split -
ANSWER What is the highest and best use of a rural property that has 300 lineal feet
of frontage and a depth of 300 lineal feet, when zoning requires a site to be at least two
acres for the development of a single-family home?
effective demand.
RATIONALE The characteristic of purchase ability, or affordability, is known as effective
demand or effective purchasing power. - ANSWER Regardless of the desire for a
property in a particular market, if there is not general purchase ability linked to the desire
within the market, the market is lacking
scarcity and utility. DUST - ANSWER Which of the following characteristics create
value in real estate?
it could remain in that phase indefinitely.
2
,RATIONALE
Stability is when buyer interest in the neighborhood remains strong and prices rarely drop.
Some neighborhoods remain in this stage and don't experience decline. -
ANSWER Once a neighborhood has reached the phase of stability in its life cycle
If the condition is not adhered to, the title to the property could be forfeited
RATIONALE
Fee simple conditional provides that the owner may hold the estate only as long as some
specified act or condition does or does not occur. Thus, if the condition is not observed, the
owner could forfeit title. - ANSWER Legal interest of a subject property was
conveyed to the current owner as fee simple conditional. What can be best said about the
estate held by the current owner?
Life estate with a reversionary interest
RATIONALE
A life estate is a freehold estate that lasts only as long as a specified person lives. A life estate
with a reversionary interest means that the property will go back (revert) to the grantor or
the grantor's heirs. - ANSWER When an individual has a freehold estate that only
lasts as long as a specified person lives and then the interest goes back to the grantor or the
grantor's heirs, what type of freehold estate does the individual have?
increases at a decreasing rate.
RATIONALE
With a fixed frontage, as the depth of the lot increases, the overall value of the lot increases.
However, as the lot extends back, the value of the land farther back becomes less and the
increase in overall value becomes smaller. Therefore, the front foot rate will increase, but as
the lot extends farther back, the amount of increase in rate will decrease. -
ANSWER As the depth of the lot increases, the value per front footage
takes a ratio of the land or site value to the total improved value.
RATIONALE
3
, When the ratio of land to total value is calculated for the comparable sales and then applied
to the subject, the allocation method is being used. - ANSWER The allocation
method for determining site value
$8,756
RATIONALE
HP-12C Keystrokes: [f] [Sigma] [150000] [Sigma+] [165000] [Sigma+] [148000] [Sigma+]
[156000] [Sigma+] [163000] [Sigma+] [170000] [Sigma+] [g] [s] gives you a result of $8,756. -
ANSWER Six homes sold within the past few months. What is the standard deviation
among the data provided? $150,000, $165,000, $148,000, $156,000, $163,000, $170,000
12.30
RATIONALE
HP 12C method: 47 [Sigma+], 14 [Sigma+], 37 [Sigma+], 29 [Sigma+], 37 [Sigma+], [g] [s] =
12.2963, or 12.30 rounded. Be sure to clear all registers before beginning entries. The[s]key
is the decimal key ('s' in blue on front of key). - ANSWER Using this number set, find
the standard deviation: 47 - 14 - 37 - 29 - 37, rounded to two places.
22.14%
RATIONAL:
1. Cost new = (2,400 sq. ft. x $85) + (440 sq. ft. x $18) = $211,920.
2. Depreciation Cost =
Sale Price $240,000 -
Land Value $50,000 -
Site Improve $25,000 = $165,000
.
3. Total Depreciation = $46,920 ($211,920 - $165,000).
4
ANSWERS|LATEST !!!!2026|GRADED A+| (EXAM
Steps.
1. Determine Cost New
Main house 2400 SF x 85/SF =204,000
Garage 440 x 18/SF = 7920
======================================
204,000 + 92 = 211,920
2. Determine Depreciation Cost
Sale Price 240,000 -
Land Value 50,000 -
Improvements 25,000
========================
165,000
3. Determine Total Depreciation
Cost New 211,920 - Depreciation Cost 165,000 = 46,920
4. Determine Depreciation Percentage
Cost New 211,920/Total Depreciation 46,920 = 22.14% - ANSWER For the purpose
of estimating depreciation via the extraction method, you have utilized Comparable Sale #1,
which is a 2,400 sq. ft. home with a two-car, 440 sq. ft. attached garage, having a
replacement cost of $85/sq. ft. for gross living area and $18/sq. ft. for the garage area. This
1
,property sold for $240,000 and has a chronological age of 10 years. Through your research,
the indicated land value is $50,000 and the site improvements have a replacement cost of
$25,000. What is the percentage total amount of accrued depreciation indicated by this
sale?
Allocation: a method of estimating land value in which sales of improved properties are
analyzed to establish a typical ratio of site value to total property value and this ratio is
applied to the property being appraised or the comparable being analyzed.
Extraction: a method of estimating land value in which the depreciated cost of the
improvement on the improved property is estimated and deducted from the total sale price
to arrive at an estimated sale price for the land; most effective when the improvements
contribute little to the total sale price of the property. - ANSWER Allocation method
vs. extraction method
size - ANSWER Which is a physical force in relationship to value?
utilize the site as one home site, since the site cannot legally be split -
ANSWER What is the highest and best use of a rural property that has 300 lineal feet
of frontage and a depth of 300 lineal feet, when zoning requires a site to be at least two
acres for the development of a single-family home?
effective demand.
RATIONALE The characteristic of purchase ability, or affordability, is known as effective
demand or effective purchasing power. - ANSWER Regardless of the desire for a
property in a particular market, if there is not general purchase ability linked to the desire
within the market, the market is lacking
scarcity and utility. DUST - ANSWER Which of the following characteristics create
value in real estate?
it could remain in that phase indefinitely.
2
,RATIONALE
Stability is when buyer interest in the neighborhood remains strong and prices rarely drop.
Some neighborhoods remain in this stage and don't experience decline. -
ANSWER Once a neighborhood has reached the phase of stability in its life cycle
If the condition is not adhered to, the title to the property could be forfeited
RATIONALE
Fee simple conditional provides that the owner may hold the estate only as long as some
specified act or condition does or does not occur. Thus, if the condition is not observed, the
owner could forfeit title. - ANSWER Legal interest of a subject property was
conveyed to the current owner as fee simple conditional. What can be best said about the
estate held by the current owner?
Life estate with a reversionary interest
RATIONALE
A life estate is a freehold estate that lasts only as long as a specified person lives. A life estate
with a reversionary interest means that the property will go back (revert) to the grantor or
the grantor's heirs. - ANSWER When an individual has a freehold estate that only
lasts as long as a specified person lives and then the interest goes back to the grantor or the
grantor's heirs, what type of freehold estate does the individual have?
increases at a decreasing rate.
RATIONALE
With a fixed frontage, as the depth of the lot increases, the overall value of the lot increases.
However, as the lot extends back, the value of the land farther back becomes less and the
increase in overall value becomes smaller. Therefore, the front foot rate will increase, but as
the lot extends farther back, the amount of increase in rate will decrease. -
ANSWER As the depth of the lot increases, the value per front footage
takes a ratio of the land or site value to the total improved value.
RATIONALE
3
, When the ratio of land to total value is calculated for the comparable sales and then applied
to the subject, the allocation method is being used. - ANSWER The allocation
method for determining site value
$8,756
RATIONALE
HP-12C Keystrokes: [f] [Sigma] [150000] [Sigma+] [165000] [Sigma+] [148000] [Sigma+]
[156000] [Sigma+] [163000] [Sigma+] [170000] [Sigma+] [g] [s] gives you a result of $8,756. -
ANSWER Six homes sold within the past few months. What is the standard deviation
among the data provided? $150,000, $165,000, $148,000, $156,000, $163,000, $170,000
12.30
RATIONALE
HP 12C method: 47 [Sigma+], 14 [Sigma+], 37 [Sigma+], 29 [Sigma+], 37 [Sigma+], [g] [s] =
12.2963, or 12.30 rounded. Be sure to clear all registers before beginning entries. The[s]key
is the decimal key ('s' in blue on front of key). - ANSWER Using this number set, find
the standard deviation: 47 - 14 - 37 - 29 - 37, rounded to two places.
22.14%
RATIONAL:
1. Cost new = (2,400 sq. ft. x $85) + (440 sq. ft. x $18) = $211,920.
2. Depreciation Cost =
Sale Price $240,000 -
Land Value $50,000 -
Site Improve $25,000 = $165,000
.
3. Total Depreciation = $46,920 ($211,920 - $165,000).
4
