GENERAL APPRAISER INCOME APPROACH
FINAL EXAM WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED
ANSWERS| CURRENTLY TESTING VERSION |
ALREADY GRADED A+|NEWEST|EXPERT
VERIFIED FOR GUARANTEED PASS 2026/2027
An appraiser discovers that a tenant providing free dry cleaning to the landlord for the
duration of the lease would be addressed in a lease agreement under:
concessions
Calculate the floor area ratio on a 150,000-square-foot warehouse situated on 10 acres
of land.
.34 Ch. 4:, Definitions. 150,000 ENTER 43,560 ENTER 10 [X] [÷]
Dividing the difference between the amount borrowed and the amount paid back by the
original loan amount is ___________.
discount rate
Tenant improvements are:
A positive or a negative influence on value and rents
An appraiser should understand that renewal options allow the tenant to:
Renew the lease with new rents and duration
Historically, most real estate properties have:
Out-paced inflation
An appraiser may find an older structure's higher energy and maintenance costs less of
a negative factor when:
1|Page
,There is historical or retro appeal
Calculate the mean of 44,000, 46,000, 50,000, 54,000, and 56,000.
50,000
The term "Long Wall" refers to which of the following:
A controversial coal mining methodology
An investment in an "Ordinary Annuity" that pays 5% interest is made by an investor. The
cash deposit is $2,000 at the end of the first year. Each successive year, the investor
deposits an additional $2,000 in the same account. At the end of 10 years, what will be
the balance in that account?
$25,155.79 Ch. 5: Future Worth of $1 Per Period. f [FIN] 10 [n] 5 [i] 2,000 [CHS] [PMT]
[FV]
Beginning in the 1980s, hotel/motel developers began what significant trend?
Getting out of the restaurant business
The board of The Appraisal Foundation which establishes experience criteria for
licensing and certification of appraisers is the:
AQB
Per the IRS, a minimum criterion to be considered in valuing historic preservation
easements is that the property must be:
Located in a historic district
A capitalization rate used to forecast a reversionary value in DCF is a:
Terminal capitalization rate
The land value is $120,000, and the Net Operating Income is $50,000. The land cap rate
is .07, and the building cap rate is .11. What is the total property value?
$498,182 Ch. 21: Building Residual Technique. 120,000 ENTER .07 [X] [STO] 1 50,000
ENTER [RCL] 1 .11 [÷] 120,000 [+]
2|Page
,According to a quoted USPAP reference, "The value of the whole..."
May equal, exceed or be less than the sum of the parts
Because the estimates of revenues and rates in the future are subject to error, the use of
this fair warning disclosure to the client is warranted:
Extraordinary Assumption
If an appraiser analyzes the demand in a local area relative to a national benchmark,
that is known as ________.
BPI
The mathematical process used with the tables for all six functions of a dollar is:
multiplication
A sandwich lease position profits $50,000 each year from the lease payments. At a 12%
rate, and a 5-year lease, what is the value of that interest?
$180,239 Ch. 42: Sandwich Lease. f [FIN] 5 [n] 12 [i] 50,000 [CHS] [PMT] [PV]
Estimated future cash flows that may change, but have been adjusted to an equal
amount per year, are referred to by an appraiser as:
Stabilized incomes
Another name for the "free and clear yield" is the:
overall yield rate
Subject property is 4,500 square feet. The sales of similar properties in the area were
$120,000 for 4,000 square feet; $140,000 for 6,000 square feet; and $150,000 for 7,000
square feet. Using the linear regression keystrokes on your calculator, compute the
indicated value of the subject property.
$125,000 Ch. 3: Linear Regression. [f] [REG] 120,000 ENTER 4,000 SIGMA+ 140,000
ENTER 6,000 SIGMA+ 150,000 ENTER 7,000 SIGMA+ 4,500 g [2]
An interest in a partnership of 45% that does not include operational control typically
would have a value:
3|Page
, Significantly discounted
If there were nine sales of comparable properties in the last six months, the absorption
rate would be:
1.5 Ch. 28: Some Math (percentages). 9 ENTER 6 [÷]
The mathematical process used with all of the table's six functions is:
multiplication
Of cleaning, decorating, painting, and pest control, which should an appraiser consider
under Replacement Reserves?
painting
A property is owned by joint tenants. One of the parties dies. The demised party's
interest:
Goes to the other joint tenant
If the lender shares in any losses:
Holding periods are generally longer
Creating a number that is between two known numbers in an Ellwood factor table text is
an example of:
interpolation
An algebraic formula used to calculate an overall rate, based on the mortgage equity
analysis concept that allows for cash flow forecasts including the impact of financing, is
the:
Ellwood formula
Maximizing the amount of front footage of a site is important to retail establishments
for:
visibility
4|Page
FINAL EXAM WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED
ANSWERS| CURRENTLY TESTING VERSION |
ALREADY GRADED A+|NEWEST|EXPERT
VERIFIED FOR GUARANTEED PASS 2026/2027
An appraiser discovers that a tenant providing free dry cleaning to the landlord for the
duration of the lease would be addressed in a lease agreement under:
concessions
Calculate the floor area ratio on a 150,000-square-foot warehouse situated on 10 acres
of land.
.34 Ch. 4:, Definitions. 150,000 ENTER 43,560 ENTER 10 [X] [÷]
Dividing the difference between the amount borrowed and the amount paid back by the
original loan amount is ___________.
discount rate
Tenant improvements are:
A positive or a negative influence on value and rents
An appraiser should understand that renewal options allow the tenant to:
Renew the lease with new rents and duration
Historically, most real estate properties have:
Out-paced inflation
An appraiser may find an older structure's higher energy and maintenance costs less of
a negative factor when:
1|Page
,There is historical or retro appeal
Calculate the mean of 44,000, 46,000, 50,000, 54,000, and 56,000.
50,000
The term "Long Wall" refers to which of the following:
A controversial coal mining methodology
An investment in an "Ordinary Annuity" that pays 5% interest is made by an investor. The
cash deposit is $2,000 at the end of the first year. Each successive year, the investor
deposits an additional $2,000 in the same account. At the end of 10 years, what will be
the balance in that account?
$25,155.79 Ch. 5: Future Worth of $1 Per Period. f [FIN] 10 [n] 5 [i] 2,000 [CHS] [PMT]
[FV]
Beginning in the 1980s, hotel/motel developers began what significant trend?
Getting out of the restaurant business
The board of The Appraisal Foundation which establishes experience criteria for
licensing and certification of appraisers is the:
AQB
Per the IRS, a minimum criterion to be considered in valuing historic preservation
easements is that the property must be:
Located in a historic district
A capitalization rate used to forecast a reversionary value in DCF is a:
Terminal capitalization rate
The land value is $120,000, and the Net Operating Income is $50,000. The land cap rate
is .07, and the building cap rate is .11. What is the total property value?
$498,182 Ch. 21: Building Residual Technique. 120,000 ENTER .07 [X] [STO] 1 50,000
ENTER [RCL] 1 .11 [÷] 120,000 [+]
2|Page
,According to a quoted USPAP reference, "The value of the whole..."
May equal, exceed or be less than the sum of the parts
Because the estimates of revenues and rates in the future are subject to error, the use of
this fair warning disclosure to the client is warranted:
Extraordinary Assumption
If an appraiser analyzes the demand in a local area relative to a national benchmark,
that is known as ________.
BPI
The mathematical process used with the tables for all six functions of a dollar is:
multiplication
A sandwich lease position profits $50,000 each year from the lease payments. At a 12%
rate, and a 5-year lease, what is the value of that interest?
$180,239 Ch. 42: Sandwich Lease. f [FIN] 5 [n] 12 [i] 50,000 [CHS] [PMT] [PV]
Estimated future cash flows that may change, but have been adjusted to an equal
amount per year, are referred to by an appraiser as:
Stabilized incomes
Another name for the "free and clear yield" is the:
overall yield rate
Subject property is 4,500 square feet. The sales of similar properties in the area were
$120,000 for 4,000 square feet; $140,000 for 6,000 square feet; and $150,000 for 7,000
square feet. Using the linear regression keystrokes on your calculator, compute the
indicated value of the subject property.
$125,000 Ch. 3: Linear Regression. [f] [REG] 120,000 ENTER 4,000 SIGMA+ 140,000
ENTER 6,000 SIGMA+ 150,000 ENTER 7,000 SIGMA+ 4,500 g [2]
An interest in a partnership of 45% that does not include operational control typically
would have a value:
3|Page
, Significantly discounted
If there were nine sales of comparable properties in the last six months, the absorption
rate would be:
1.5 Ch. 28: Some Math (percentages). 9 ENTER 6 [÷]
The mathematical process used with all of the table's six functions is:
multiplication
Of cleaning, decorating, painting, and pest control, which should an appraiser consider
under Replacement Reserves?
painting
A property is owned by joint tenants. One of the parties dies. The demised party's
interest:
Goes to the other joint tenant
If the lender shares in any losses:
Holding periods are generally longer
Creating a number that is between two known numbers in an Ellwood factor table text is
an example of:
interpolation
An algebraic formula used to calculate an overall rate, based on the mortgage equity
analysis concept that allows for cash flow forecasts including the impact of financing, is
the:
Ellwood formula
Maximizing the amount of front footage of a site is important to retail establishments
for:
visibility
4|Page
