Virginia Certified Residential Appraiser Examination
Complete Questions And Detailed Solutions Latest
Update This Year - PERFECT RATIONALE
Q1: What are Virginia appraiser license levels per Virginia Real Estate Appraiser Board VREAB and AQB?
A. Only one level
B. No Trainee
C. Only Certified General
D. Trainee, Licensed Residential, Certified Residential, Certified General per AQB and Virginia Code 54.1-2009 - Certified Residential
can appraise 1-4 residential units without regard to value or complexity
Answer & ULTRA-Detailed Rationale:
D. Trainee, Licensed Residential, Certified Residential, Certified General per AQB and Virginia Code 54.1-2009 - Certified Residential
can appraise 1-4 residential units without regard to value or complexity
CONCEPT: VA license levels. CORRECT: Virginia per VREAB and AQB Appraiser Qualifications Board: Trainee Appraiser, Licensed
Residential, Certified Residential, Certified General - Certified Residential can appraise 1-4 unit residential without regard to value or
complexity per AQB - Licensed Residential limited to non-complex 1-4 units up to $400k and complex up to $250k. WHY B WRONG:
Multiple levels. WHY C WRONG: Certified General also but Residential exists. WHY D WRONG: Trainee exists. TIP: Trainee Licensed
Residential Certified Residential Certified General - Certified Residential 1-4 units no value limit.
Q2: What is USPAP and its 5 rules per Appraisal Foundation for Virginia exam?
A. Only 2 rules
B. Only Ethics rule
C. USPAP Uniform Standards of Professional Appraisal Practice per Appraisal Foundation - 5 Rules: Ethics, Record Keeping,
Competency, Scope of Work, Jurisdictional Exception - Virginia requires compliance per 18 VAC 130-20
D. No USPAP in Virginia
Answer & ULTRA-Detailed Rationale:
C. USPAP Uniform Standards of Professional Appraisal Practice per Appraisal Foundation - 5 Rules: Ethics, Record Keeping,
Competency, Scope of Work, Jurisdictional Exception - Virginia requires compliance per 18 VAC 130-20
CONCEPT: USPAP 5 Rules. CORRECT: USPAP Uniform Standards of Professional Appraisal Practice per The Appraisal Foundation -
5 Rules: Ethics Rule, Record Keeping Rule, Competency Rule, Scope of Work Rule, Jurisdictional Exception Rule - Virginia requires
compliance per Virginia Code 54.1-2013 and 18 VAC 130-20-30. WHY B WRONG: 5 rules not 2. WHY C WRONG: USPAP required in
Virginia. WHY D WRONG: 5 rules not only Ethics. TIP: USPAP 5 Rules Ethics Record Keeping Competency Scope of Work
Jurisdictional Exception - Virginia 18 VAC 130-20.
Page 1 | VA CERTIFIED RESIDENTIAL APPRAISER - PERFECT 200 UNIQUE - BIG TITLE
,Q3: What are three approaches to value in residential appraisal per Virginia exam?
A. No approaches
B. Only Income Approach
C. Sales Comparison Approach, Cost Approach, Income Approach - Sales Comparison most important for residential - reconciliation
D. Only Cost Approach
Answer & ULTRA-Detailed Rationale:
C. Sales Comparison Approach, Cost Approach, Income Approach - Sales Comparison most important for residential - reconciliation
CONCEPT: Three approaches to value. CORRECT: Three approaches per USPAP and appraisal principles: Sales Comparison
Approach - compares subject to recent comparable sales, Cost Approach - cost to replace plus land minus depreciation, Income
Approach - direct capitalization GRM for residential - Sales Comparison most reliable for residential - final reconciliation. WHY B/C
WRONG: Need all three considered. WHY D WRONG: Approaches exist. TIP: Three approaches Sales Comparison Cost Income -
Sales Comparison most important residential reconciliation.
Q4: What is highest and best use test 4 criteria per Virginia Certified Residential?
A. Only physically possible
B. Only legally permissible
C. No criteria
D. Highest and best use must be: legally permissible, physically possible, financially feasible, maximally productive per appraisal
principles
Answer & ULTRA-Detailed Rationale:
D. Highest and best use must be: legally permissible, physically possible, financially feasible, maximally productive per appraisal
principles
CONCEPT: Highest and best use 4 tests. CORRECT: Highest and best use 4 criteria per appraisal: legally permissible zoning,
physically possible size shape, financially feasible generates profit, maximally productive highest net return. WHY B/C WRONG: Need all
4 not only one. WHY D WRONG: Criteria exist. TIP: Highest and best use 4 tests legally permissible physically possible financially
feasible maximally productive.
Q5: What is bundle of rights in real estate appraisal?
A. Only disposition
B. No rights
C. Bundle of rights: possession, control, exclusion, enjoyment, disposition - fee simple includes all
D. Only possession
Answer & ULTRA-Detailed Rationale:
C. Bundle of rights: possession, control, exclusion, enjoyment, disposition - fee simple includes all
CONCEPT: Bundle of rights. CORRECT: Bundle of rights: right of possession, control, exclusion, enjoyment, disposition - fee simple
absolute includes all rights - less than fee e.g., leasehold. WHY B/D WRONG: Only one right insufficient - bundle includes 5. WHY C
WRONG: Rights exist. TIP: Bundle rights possession control exclusion enjoyment disposition - fee simple all rights.
Page 2 | VA CERTIFIED RESIDENTIAL APPRAISER - PERFECT 200 UNIQUE - BIG TITLE
,Q6: What is Virginia Real Estate Appraiser Board VREAB requirement for Certified Residential experience hours per
AQB 2023?
A. Per AQB 2023 Certified Residential requires 1500 hours experience in no less than 12 months - 1000 hours must be in 1-4
residential - Virginia per 18 VAC 130-20-40
B. 5000 hours in 6 months
C. Only 100 hours
D. No experience required
Answer & ULTRA-Detailed Rationale:
A. Per AQB 2023 Certified Residential requires 1500 hours experience in no less than 12 months - 1000 hours must be in 1-4 residential
- Virginia per 18 VAC 130-20-40
CONCEPT: Certified Residential experience hours. CORRECT: Per AQB Appraiser Qualifications Board 2023 and Virginia 18 VAC
130-20-40: Certified Residential requires 1500 hours experience in no fewer than 12 months - at least 1000 hours must be in 1-4
residential - must be documented log. WHY B WRONG: 100 hours too low. WHY C WRONG: Experience required. WHY D WRONG:
1500 not 5000 and no less than 12 months not 6. TIP: Certified Residential 1500 hours in >=12 months 1000 hours 1-4 residential per
AQB Virginia 18 VAC 130-20-40.
Q7: What is Gross Rent Multiplier GRM and its use in Virginia residential appraisal?
A. Only for commercial
B. No GRM in residential
C. GRM = Sale Price / Gross Monthly Rent or Annual - used in Income Approach for 1-4 residential - e.g., Sale $200k Rent $2000
month GRM 100
D. GRM = Rent / Price
Answer & ULTRA-Detailed Rationale:
C. GRM = Sale Price / Gross Monthly Rent or Annual - used in Income Approach for 1-4 residential - e.g., Sale $200k Rent $2000 month
GRM 100
CONCEPT: GRM. CORRECT: Gross Rent Multiplier GRM = Sale Price / Gross Rent - monthly GRM commonly monthly rent, annual
GRM annual rent - used in Income Approach for 1-4 residential small income properties - e.g., Sale $200,000 / $2,000 monthly rent =
GRM 100. WHY B WRONG: Price / Rent not Rent / Price. WHY C WRONG: GRM used in residential. WHY D WRONG: Residential 1-4
uses GRM commercial uses cap rate. TIP: GRM = Sale Price / Gross Rent - Sale 200k Rent 2k month GRM 100.
Q8: What is appraisal adjustment process in Sales Comparison Approach?
A. Adjust comparable sales to subject - adjustments for market conditions time, location, physical differences - bracket subject - net
and gross adjustment
B. No adjustments needed
C. Adjust subject to comparables
D. Only adjust for time
Answer & ULTRA-Detailed Rationale:
A. Adjust comparable sales to subject - adjustments for market conditions time, location, physical differences - bracket subject - net and
gross adjustment
CONCEPT: Sales comparison adjustments. CORRECT: Sales Comparison Approach adjustment process: adjust comparable sales to
subject - sequence: property rights, financing, market conditions time, location, physical characteristics - bracket subject - explain
adjustments - net adjustment, gross adjustment, must be market supported. WHY B WRONG: Adjust comps to subject not subject to
comps. WHY C WRONG: Adjustments needed for differences. WHY D WRONG: Need multiple adjustments not only time. TIP: Adjust
comps to subject sequence rights financing time market conditions location physical bracket net gross market supported.
Page 3 | VA CERTIFIED RESIDENTIAL APPRAISER - PERFECT 200 UNIQUE - BIG TITLE
, Q9: What is depreciation 3 types in Cost Approach for Virginia exam?
A. Only functional
B. Physical deterioration, functional obsolescence, external economic obsolescence - curable vs incurable
C. No depreciation
D. Only physical
Answer & ULTRA-Detailed Rationale:
B. Physical deterioration, functional obsolescence, external economic obsolescence - curable vs incurable
CONCEPT: Depreciation 3 types. CORRECT: Depreciation in Cost Approach 3 types: physical deterioration wear tear, functional
obsolescence outmoded design, external economic obsolescence outside property e.g., highway - curable cost to cure less than value
added vs incurable cost more than value added. WHY B/D WRONG: Need 3 types not only one. WHY C WRONG: Depreciation exists.
TIP: Depreciation physical functional external - curable cost to cure < value added incurable cost > value added.
Q10: What is Virginia law for appraisal independence and AIR?
A. No AIR
B. Appraiser can be coerced
C. Lender can dictate value
D. Appraiser Independence Requirements AIR per Dodd-Frank - no coercion, no MSU, Virginia Code 54.1-2013 prohibits improper
influence - must be independent
Answer & ULTRA-Detailed Rationale:
D. Appraiser Independence Requirements AIR per Dodd-Frank - no coercion, no MSU, Virginia Code 54.1-2013 prohibits improper
influence - must be independent
CONCEPT: Appraiser independence AIR. CORRECT: Appraiser Independence Requirements AIR per Dodd-Frank Act and Interagency
Guidelines - appraiser must be independent no coercion bribery, no predetermined value, Virginia Code 54.1-2013 prohibits improper
influence - must report. WHY B/D WRONG: Coercion prohibited lender cannot dictate value. WHY C WRONG: AIR exists. TIP: AIR
Dodd-Frank no coercion no predetermined value Virginia 54.1-2013 independent.
Q11: What is market value definition per USPAP and FIRREA?
A. Forced sale price
B. Only assessed value
C. No definition
D. Market value most probable price buyer seller willing - not forced - reasonable exposure - per FIRREA and USPAP
Answer & ULTRA-Detailed Rationale:
D. Market value most probable price buyer seller willing - not forced - reasonable exposure - per FIRREA and USPAP
CONCEPT: Market value definition. CORRECT: Market value per FIRREA and USPAP: most probable price property should bring in
competitive open market under conditions: buyer seller typically motivated, not forced, reasonable exposure time, payment cash
equivalent, per 12 CFR 1026. WHY B WRONG: Not forced sale. WHY C WRONG: Assessed value different for tax. WHY D WRONG:
Definition exists FIRREA USPAP. TIP: Market value most probable price buyer seller not forced reasonable exposure cash equivalent
per FIRREA USPAP.
Page 4 | VA CERTIFIED RESIDENTIAL APPRAISER - PERFECT 200 UNIQUE - BIG TITLE
Complete Questions And Detailed Solutions Latest
Update This Year - PERFECT RATIONALE
Q1: What are Virginia appraiser license levels per Virginia Real Estate Appraiser Board VREAB and AQB?
A. Only one level
B. No Trainee
C. Only Certified General
D. Trainee, Licensed Residential, Certified Residential, Certified General per AQB and Virginia Code 54.1-2009 - Certified Residential
can appraise 1-4 residential units without regard to value or complexity
Answer & ULTRA-Detailed Rationale:
D. Trainee, Licensed Residential, Certified Residential, Certified General per AQB and Virginia Code 54.1-2009 - Certified Residential
can appraise 1-4 residential units without regard to value or complexity
CONCEPT: VA license levels. CORRECT: Virginia per VREAB and AQB Appraiser Qualifications Board: Trainee Appraiser, Licensed
Residential, Certified Residential, Certified General - Certified Residential can appraise 1-4 unit residential without regard to value or
complexity per AQB - Licensed Residential limited to non-complex 1-4 units up to $400k and complex up to $250k. WHY B WRONG:
Multiple levels. WHY C WRONG: Certified General also but Residential exists. WHY D WRONG: Trainee exists. TIP: Trainee Licensed
Residential Certified Residential Certified General - Certified Residential 1-4 units no value limit.
Q2: What is USPAP and its 5 rules per Appraisal Foundation for Virginia exam?
A. Only 2 rules
B. Only Ethics rule
C. USPAP Uniform Standards of Professional Appraisal Practice per Appraisal Foundation - 5 Rules: Ethics, Record Keeping,
Competency, Scope of Work, Jurisdictional Exception - Virginia requires compliance per 18 VAC 130-20
D. No USPAP in Virginia
Answer & ULTRA-Detailed Rationale:
C. USPAP Uniform Standards of Professional Appraisal Practice per Appraisal Foundation - 5 Rules: Ethics, Record Keeping,
Competency, Scope of Work, Jurisdictional Exception - Virginia requires compliance per 18 VAC 130-20
CONCEPT: USPAP 5 Rules. CORRECT: USPAP Uniform Standards of Professional Appraisal Practice per The Appraisal Foundation -
5 Rules: Ethics Rule, Record Keeping Rule, Competency Rule, Scope of Work Rule, Jurisdictional Exception Rule - Virginia requires
compliance per Virginia Code 54.1-2013 and 18 VAC 130-20-30. WHY B WRONG: 5 rules not 2. WHY C WRONG: USPAP required in
Virginia. WHY D WRONG: 5 rules not only Ethics. TIP: USPAP 5 Rules Ethics Record Keeping Competency Scope of Work
Jurisdictional Exception - Virginia 18 VAC 130-20.
Page 1 | VA CERTIFIED RESIDENTIAL APPRAISER - PERFECT 200 UNIQUE - BIG TITLE
,Q3: What are three approaches to value in residential appraisal per Virginia exam?
A. No approaches
B. Only Income Approach
C. Sales Comparison Approach, Cost Approach, Income Approach - Sales Comparison most important for residential - reconciliation
D. Only Cost Approach
Answer & ULTRA-Detailed Rationale:
C. Sales Comparison Approach, Cost Approach, Income Approach - Sales Comparison most important for residential - reconciliation
CONCEPT: Three approaches to value. CORRECT: Three approaches per USPAP and appraisal principles: Sales Comparison
Approach - compares subject to recent comparable sales, Cost Approach - cost to replace plus land minus depreciation, Income
Approach - direct capitalization GRM for residential - Sales Comparison most reliable for residential - final reconciliation. WHY B/C
WRONG: Need all three considered. WHY D WRONG: Approaches exist. TIP: Three approaches Sales Comparison Cost Income -
Sales Comparison most important residential reconciliation.
Q4: What is highest and best use test 4 criteria per Virginia Certified Residential?
A. Only physically possible
B. Only legally permissible
C. No criteria
D. Highest and best use must be: legally permissible, physically possible, financially feasible, maximally productive per appraisal
principles
Answer & ULTRA-Detailed Rationale:
D. Highest and best use must be: legally permissible, physically possible, financially feasible, maximally productive per appraisal
principles
CONCEPT: Highest and best use 4 tests. CORRECT: Highest and best use 4 criteria per appraisal: legally permissible zoning,
physically possible size shape, financially feasible generates profit, maximally productive highest net return. WHY B/C WRONG: Need all
4 not only one. WHY D WRONG: Criteria exist. TIP: Highest and best use 4 tests legally permissible physically possible financially
feasible maximally productive.
Q5: What is bundle of rights in real estate appraisal?
A. Only disposition
B. No rights
C. Bundle of rights: possession, control, exclusion, enjoyment, disposition - fee simple includes all
D. Only possession
Answer & ULTRA-Detailed Rationale:
C. Bundle of rights: possession, control, exclusion, enjoyment, disposition - fee simple includes all
CONCEPT: Bundle of rights. CORRECT: Bundle of rights: right of possession, control, exclusion, enjoyment, disposition - fee simple
absolute includes all rights - less than fee e.g., leasehold. WHY B/D WRONG: Only one right insufficient - bundle includes 5. WHY C
WRONG: Rights exist. TIP: Bundle rights possession control exclusion enjoyment disposition - fee simple all rights.
Page 2 | VA CERTIFIED RESIDENTIAL APPRAISER - PERFECT 200 UNIQUE - BIG TITLE
,Q6: What is Virginia Real Estate Appraiser Board VREAB requirement for Certified Residential experience hours per
AQB 2023?
A. Per AQB 2023 Certified Residential requires 1500 hours experience in no less than 12 months - 1000 hours must be in 1-4
residential - Virginia per 18 VAC 130-20-40
B. 5000 hours in 6 months
C. Only 100 hours
D. No experience required
Answer & ULTRA-Detailed Rationale:
A. Per AQB 2023 Certified Residential requires 1500 hours experience in no less than 12 months - 1000 hours must be in 1-4 residential
- Virginia per 18 VAC 130-20-40
CONCEPT: Certified Residential experience hours. CORRECT: Per AQB Appraiser Qualifications Board 2023 and Virginia 18 VAC
130-20-40: Certified Residential requires 1500 hours experience in no fewer than 12 months - at least 1000 hours must be in 1-4
residential - must be documented log. WHY B WRONG: 100 hours too low. WHY C WRONG: Experience required. WHY D WRONG:
1500 not 5000 and no less than 12 months not 6. TIP: Certified Residential 1500 hours in >=12 months 1000 hours 1-4 residential per
AQB Virginia 18 VAC 130-20-40.
Q7: What is Gross Rent Multiplier GRM and its use in Virginia residential appraisal?
A. Only for commercial
B. No GRM in residential
C. GRM = Sale Price / Gross Monthly Rent or Annual - used in Income Approach for 1-4 residential - e.g., Sale $200k Rent $2000
month GRM 100
D. GRM = Rent / Price
Answer & ULTRA-Detailed Rationale:
C. GRM = Sale Price / Gross Monthly Rent or Annual - used in Income Approach for 1-4 residential - e.g., Sale $200k Rent $2000 month
GRM 100
CONCEPT: GRM. CORRECT: Gross Rent Multiplier GRM = Sale Price / Gross Rent - monthly GRM commonly monthly rent, annual
GRM annual rent - used in Income Approach for 1-4 residential small income properties - e.g., Sale $200,000 / $2,000 monthly rent =
GRM 100. WHY B WRONG: Price / Rent not Rent / Price. WHY C WRONG: GRM used in residential. WHY D WRONG: Residential 1-4
uses GRM commercial uses cap rate. TIP: GRM = Sale Price / Gross Rent - Sale 200k Rent 2k month GRM 100.
Q8: What is appraisal adjustment process in Sales Comparison Approach?
A. Adjust comparable sales to subject - adjustments for market conditions time, location, physical differences - bracket subject - net
and gross adjustment
B. No adjustments needed
C. Adjust subject to comparables
D. Only adjust for time
Answer & ULTRA-Detailed Rationale:
A. Adjust comparable sales to subject - adjustments for market conditions time, location, physical differences - bracket subject - net and
gross adjustment
CONCEPT: Sales comparison adjustments. CORRECT: Sales Comparison Approach adjustment process: adjust comparable sales to
subject - sequence: property rights, financing, market conditions time, location, physical characteristics - bracket subject - explain
adjustments - net adjustment, gross adjustment, must be market supported. WHY B WRONG: Adjust comps to subject not subject to
comps. WHY C WRONG: Adjustments needed for differences. WHY D WRONG: Need multiple adjustments not only time. TIP: Adjust
comps to subject sequence rights financing time market conditions location physical bracket net gross market supported.
Page 3 | VA CERTIFIED RESIDENTIAL APPRAISER - PERFECT 200 UNIQUE - BIG TITLE
, Q9: What is depreciation 3 types in Cost Approach for Virginia exam?
A. Only functional
B. Physical deterioration, functional obsolescence, external economic obsolescence - curable vs incurable
C. No depreciation
D. Only physical
Answer & ULTRA-Detailed Rationale:
B. Physical deterioration, functional obsolescence, external economic obsolescence - curable vs incurable
CONCEPT: Depreciation 3 types. CORRECT: Depreciation in Cost Approach 3 types: physical deterioration wear tear, functional
obsolescence outmoded design, external economic obsolescence outside property e.g., highway - curable cost to cure less than value
added vs incurable cost more than value added. WHY B/D WRONG: Need 3 types not only one. WHY C WRONG: Depreciation exists.
TIP: Depreciation physical functional external - curable cost to cure < value added incurable cost > value added.
Q10: What is Virginia law for appraisal independence and AIR?
A. No AIR
B. Appraiser can be coerced
C. Lender can dictate value
D. Appraiser Independence Requirements AIR per Dodd-Frank - no coercion, no MSU, Virginia Code 54.1-2013 prohibits improper
influence - must be independent
Answer & ULTRA-Detailed Rationale:
D. Appraiser Independence Requirements AIR per Dodd-Frank - no coercion, no MSU, Virginia Code 54.1-2013 prohibits improper
influence - must be independent
CONCEPT: Appraiser independence AIR. CORRECT: Appraiser Independence Requirements AIR per Dodd-Frank Act and Interagency
Guidelines - appraiser must be independent no coercion bribery, no predetermined value, Virginia Code 54.1-2013 prohibits improper
influence - must report. WHY B/D WRONG: Coercion prohibited lender cannot dictate value. WHY C WRONG: AIR exists. TIP: AIR
Dodd-Frank no coercion no predetermined value Virginia 54.1-2013 independent.
Q11: What is market value definition per USPAP and FIRREA?
A. Forced sale price
B. Only assessed value
C. No definition
D. Market value most probable price buyer seller willing - not forced - reasonable exposure - per FIRREA and USPAP
Answer & ULTRA-Detailed Rationale:
D. Market value most probable price buyer seller willing - not forced - reasonable exposure - per FIRREA and USPAP
CONCEPT: Market value definition. CORRECT: Market value per FIRREA and USPAP: most probable price property should bring in
competitive open market under conditions: buyer seller typically motivated, not forced, reasonable exposure time, payment cash
equivalent, per 12 CFR 1026. WHY B WRONG: Not forced sale. WHY C WRONG: Assessed value different for tax. WHY D WRONG:
Definition exists FIRREA USPAP. TIP: Market value most probable price buyer seller not forced reasonable exposure cash equivalent
per FIRREA USPAP.
Page 4 | VA CERTIFIED RESIDENTIAL APPRAISER - PERFECT 200 UNIQUE - BIG TITLE
