BASIC APPRAISAL PRINCIPLES TEST STUDY
QUESTIONS WITH COMPLETE SOLUTIONS
True or False? When developing an opinion of site value of an improved
| | | | | | | | | | | | |
property, an appraiser needs to consider the highest and best use of the
| | | | | | | | | | | |
property as though vacant. - CORRECT ANSWER✔✔-TRUE
| | | | | | |
When developing an opinion of highest and best use, what is the final
| | | | | | | | | | | | |
criteria that is applied? - CORRECT ANSWER✔✔-maximally productive
| | | | | | |
A lot owner constructs a new 4,000 square foot home in a
| | | | | | | | | | | |
neighborhood of mostly 800 to 1,200 square foot homes. The value of
| | | | | | | | | | | |
the new 4,000 square foot home is diminished by the smaller homes
| | | | | | | | | | | |
surrounding it. This is an example of which valuation principle? -
| | | | | | | | | | |
CORRECT ANSWER✔✔-regression |
Unfortunately, with real estate, the ______ side of the equation is
| | | | | | | | | | |
relatively fixed and slow to change whereas the ______ side of the
| | | | | | | | | | | |
equation can change quickly. - CORRECT ANSWER✔✔-supply, demand
| | | | | | |
The result of the cause and effect relationship among the forces that
| | | | | | | | | | | |
influence real property value" is the definition of the principle of -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-change |
,In the agents of production theory, the return on land would be
| | | | | | | | | | | |
__________ and the return on labor would be ________. - CORRECT
| | | | | | | | | | |
ANSWER✔✔-rent, wages |
The perception that value is created by the expectation of benefits to be
| | | | | | | | | | | |
derived in the future" is the definition of the principle of - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-anticipation
"The principle that real property value is created and sustained when
| | | | | | | | | | |
contrasting, opposing, or interacting elements are in a state of
| | | | | | | | | |
equilibrium" is the definition of the principle of - CORRECT
| | | | | | | | | |
ANSWER✔✔-balance
The principle that studies the relationships between participants in the
| | | | | | | | | |
marketplace, such as buyers and sellers or landlords and tenants, is the
| | | | | | | | | | | |
principle of - CORRECT ANSWER✔✔-competition
| | | |
When estimating the value of a swimming pool to a residential property,
| | | | | | | | | | |
the most important principle is the principle of - CORRECT
| | | | | | | | | | |
ANSWER✔✔-contribution
"The concept that successive increments of one or more agents of
| | | | | | | | | | |
production added to fixed amounts of the other agents will enhance
| | | | | | | | | | |
income, in dollars, benefits, or amenities, at an increasing rate until a
| | | | | | | | | | | |
,maximum return is reached. Then, income will decrease until the
| | | | | | | | | |
increment to value becomes increasingly less than the value of the
| | | | | | | | | | |
added agent or agents" is the definition of the principle of - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-increasing and decreasing returns | | |
Which characteristic would NOT be associated with a good appraiser? -
| | | | | | | | | | |
CORRECT ANSWER✔✔-biased |
Which college-level course would probably be LEAST helpful to an
| | | | | | | | | |
appraiser? - CORRECT ANSWER✔✔-Biology
| | |
True or False: All appraisals are performed for mortgage lending
| | | | | | | | | |
purposes. - CORRECT ANSWER✔✔-False
| | |
A certified residential appraiser needs ____ hours of continuing
| | | | | | | | |
education per year to renew his or her certification? - CORRECT
| | | | | | | | | | |
ANSWER✔✔-14
True or False: An applicant for Certified General appraiser must possess
| | | | | | | | | | |
at least an associate's degree from an accredited college or university. -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-False |
A licensed or certified appraiser must take the 7-hour USPAP Update
| | | | | | | | | | |
course - CORRECT ANSWER✔✔-every 2 years
| | | | |
, The requirements for state licensed and certified appraisers had their
| | | | | | | | | |
genesis in - CORRECT ANSWER✔✔-FIRREA
| | | |
True or False: The end of the U.S. housing boom meant that appraisal
| | | | | | | | | | | | |
business dropped significantly across the country. - CORRECT
| | | | | | | |
ANSWER✔✔-False
True or False: Attorneys often engage appraisers to complete
| | | | | | | | |
assignments for estates and divorces. - CORRECT ANSWER✔✔-False
| | | | | | |
An applicant for Certified General Appraiser must obtain _______
| | | | | | | | |
experience hours in no fewer than _____ months. - CORRECT
| | | | | | | | | |
ANSWER✔✔-3,000, 30 |
True or False: Some state agencies employ full-time staff appraisers. -
| | | | | | | | | | |
CORRECT ANSWER✔✔-True |
If you have specific questions about appraisal certification or licensure
| | | | | | | | | |
requirements in your state, you should - CORRECT ANSWER✔✔-contact
| | | | | | | | |
the appraiser licensing and certification agency in your state
| | | | | | | |
Under the 2008 criteria, an Appraiser Trainee is permitted to have
| | | | | | | | | | |
________ supervising appraiser, but a supervising appraiser may not
| | | | | | | | |
QUESTIONS WITH COMPLETE SOLUTIONS
True or False? When developing an opinion of site value of an improved
| | | | | | | | | | | | |
property, an appraiser needs to consider the highest and best use of the
| | | | | | | | | | | |
property as though vacant. - CORRECT ANSWER✔✔-TRUE
| | | | | | |
When developing an opinion of highest and best use, what is the final
| | | | | | | | | | | | |
criteria that is applied? - CORRECT ANSWER✔✔-maximally productive
| | | | | | |
A lot owner constructs a new 4,000 square foot home in a
| | | | | | | | | | | |
neighborhood of mostly 800 to 1,200 square foot homes. The value of
| | | | | | | | | | | |
the new 4,000 square foot home is diminished by the smaller homes
| | | | | | | | | | | |
surrounding it. This is an example of which valuation principle? -
| | | | | | | | | | |
CORRECT ANSWER✔✔-regression |
Unfortunately, with real estate, the ______ side of the equation is
| | | | | | | | | | |
relatively fixed and slow to change whereas the ______ side of the
| | | | | | | | | | | |
equation can change quickly. - CORRECT ANSWER✔✔-supply, demand
| | | | | | |
The result of the cause and effect relationship among the forces that
| | | | | | | | | | | |
influence real property value" is the definition of the principle of -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-change |
,In the agents of production theory, the return on land would be
| | | | | | | | | | | |
__________ and the return on labor would be ________. - CORRECT
| | | | | | | | | | |
ANSWER✔✔-rent, wages |
The perception that value is created by the expectation of benefits to be
| | | | | | | | | | | |
derived in the future" is the definition of the principle of - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-anticipation
"The principle that real property value is created and sustained when
| | | | | | | | | | |
contrasting, opposing, or interacting elements are in a state of
| | | | | | | | | |
equilibrium" is the definition of the principle of - CORRECT
| | | | | | | | | |
ANSWER✔✔-balance
The principle that studies the relationships between participants in the
| | | | | | | | | |
marketplace, such as buyers and sellers or landlords and tenants, is the
| | | | | | | | | | | |
principle of - CORRECT ANSWER✔✔-competition
| | | |
When estimating the value of a swimming pool to a residential property,
| | | | | | | | | | |
the most important principle is the principle of - CORRECT
| | | | | | | | | | |
ANSWER✔✔-contribution
"The concept that successive increments of one or more agents of
| | | | | | | | | | |
production added to fixed amounts of the other agents will enhance
| | | | | | | | | | |
income, in dollars, benefits, or amenities, at an increasing rate until a
| | | | | | | | | | | |
,maximum return is reached. Then, income will decrease until the
| | | | | | | | | |
increment to value becomes increasingly less than the value of the
| | | | | | | | | | |
added agent or agents" is the definition of the principle of - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-increasing and decreasing returns | | |
Which characteristic would NOT be associated with a good appraiser? -
| | | | | | | | | | |
CORRECT ANSWER✔✔-biased |
Which college-level course would probably be LEAST helpful to an
| | | | | | | | | |
appraiser? - CORRECT ANSWER✔✔-Biology
| | |
True or False: All appraisals are performed for mortgage lending
| | | | | | | | | |
purposes. - CORRECT ANSWER✔✔-False
| | |
A certified residential appraiser needs ____ hours of continuing
| | | | | | | | |
education per year to renew his or her certification? - CORRECT
| | | | | | | | | | |
ANSWER✔✔-14
True or False: An applicant for Certified General appraiser must possess
| | | | | | | | | | |
at least an associate's degree from an accredited college or university. -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-False |
A licensed or certified appraiser must take the 7-hour USPAP Update
| | | | | | | | | | |
course - CORRECT ANSWER✔✔-every 2 years
| | | | |
, The requirements for state licensed and certified appraisers had their
| | | | | | | | | |
genesis in - CORRECT ANSWER✔✔-FIRREA
| | | |
True or False: The end of the U.S. housing boom meant that appraisal
| | | | | | | | | | | | |
business dropped significantly across the country. - CORRECT
| | | | | | | |
ANSWER✔✔-False
True or False: Attorneys often engage appraisers to complete
| | | | | | | | |
assignments for estates and divorces. - CORRECT ANSWER✔✔-False
| | | | | | |
An applicant for Certified General Appraiser must obtain _______
| | | | | | | | |
experience hours in no fewer than _____ months. - CORRECT
| | | | | | | | | |
ANSWER✔✔-3,000, 30 |
True or False: Some state agencies employ full-time staff appraisers. -
| | | | | | | | | | |
CORRECT ANSWER✔✔-True |
If you have specific questions about appraisal certification or licensure
| | | | | | | | | |
requirements in your state, you should - CORRECT ANSWER✔✔-contact
| | | | | | | | |
the appraiser licensing and certification agency in your state
| | | | | | | |
Under the 2008 criteria, an Appraiser Trainee is permitted to have
| | | | | | | | | | |
________ supervising appraiser, but a supervising appraiser may not
| | | | | | | | |
