BASIC APPRAISAL PRINCIPLES TEST STUDY QUESTIONS WITH COMPLETE SOLUTIONS

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. TRUE When developing an opinion of highest and best use, what is the final criteria that is applied? 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? 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. 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 change In the agents of production theory, the return on land would be __________ and the return on labor would be ________. 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 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 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 competition When estimating the value of a swimming pool to a residential property, the most important principle is the principle of 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 increasing and decreasing returns Which characteristic would NOT be associated with a good appraiser? biased Which college-level course would probably be LEAST helpful to an appraiser? Biology True or False: All appraisals are performed for mortgage lending purposes. False A certified residential appraiser needs ____ hours of continuing education per year to renew his or her certification? 14 True or False: An applicant for Certified General appraiser must possess at least an associate's degree from an accredited college or university. False A licensed or certified appraiser must take the 7-hour USPAP Update course every 2 years The requirements for state licensed and certified appraisers had their genesis in FIRREA True or False: The end of the U.S. housing boom meant