Basic Appraisal Principles Final I
UPDATED ACTUAL Questions and
CORRECT Answers
In a particular market, there is a demand for 500 houses per year, and there are currently
1,500 houses for sale. What does this most likely indicate? - CORRECT ANSWER✔✔-
there is a three-year supply of homes currently for sale
"A business arrangement in which two or more persons jointly own a business and share in its
profits and losses" is the definition of - CORRECT ANSWER✔✔- partnertransferable
development rightsship
Property Owner A has the right to develop his property into 10 lots. He sells this right to
nearby Property Owner B who wishes to develop his property into additional lots. This is an
example of - CORRECT ANSWER✔✔- transferable development rights
What is the mean of the following set of gross rent multipliers? (95, 93, 120, 94, 93, 129) -
CORRECT ANSWER✔✔- 104
Short term money instruments are traded on the - CORRECT ANSWER✔✔- money market
Which entity is responsible for making periodic changes to USPAP? - CORRECT
ANSWER✔✔- Appraisal Standards Board
The real property market is generally classified as a(n) __________ market. - CORRECT
ANSWER✔✔- imperfect
The appraisal standards and qualification criteria that are published by The Appraisal
Foundation achieve legal authority by adoption, citation or implementation by - CORRECT
ANSWER✔✔- government agencies with the power to regulate or administrate
Eric pays $35,000 to have an inground swimming pool constructed in his back yard. When he
sells the property, he only receives $10,000 more for his property than what similar property
, sold for without a pool. This is an example of the principle of - CORRECT ANSWER✔✔-
contribution
"The ownership interest held by the lessor, which includes the right to receive the contract
rent specified in the lease plus the reversionary right when the lease expires" is the definition
of - CORRECT ANSWER✔✔- leased fee interest
When appraising an income producing property, you have the following GRMs indicated
from comparable sales (122, 159, 132, 126, 122, 173, 152, 126). What is the mode of the
GRMs? - CORRECT ANSWER✔✔- 122, 126 (bi-modal)
The current number of appraisal education hours required for Certified General Appraiser
applicants is ______ hours. - CORRECT ANSWER✔✔- 300
The ________ is responsible for establishing criteria for individuals to become real property
appraisers. - CORRECT ANSWER✔✔- Appraiser Qualifications Board
The federal financial institutions regulatory agencies directly involved in fair lending include
all of the following EXCEPT - CORRECT ANSWER✔✔- ASB
A homeowner fears the construction of a factory nearby will decrease the value of her
property. This illustrates the principle of - CORRECT ANSWER✔✔- externalities
Under the current qualification criteria, an applicant for Appraiser Trainee must have
completed ___ creditable hours of experience. - CORRECT ANSWER✔✔- 0
What is the mode of the following set of gross rent multipliers? (95, 93, 120, 94, 93, 129) -
CORRECT ANSWER✔✔- 93
What is the purpose of a state's statute of frauds? - CORRECT ANSWER✔✔- requires
certain documents to be in writing
A property has a first mortgage of $100,000, a second mortgage of $20,000, and a third
mortgage of $10,000. It is foreclosed and sold for $125,000. The holder of the third mortgage
UPDATED ACTUAL Questions and
CORRECT Answers
In a particular market, there is a demand for 500 houses per year, and there are currently
1,500 houses for sale. What does this most likely indicate? - CORRECT ANSWER✔✔-
there is a three-year supply of homes currently for sale
"A business arrangement in which two or more persons jointly own a business and share in its
profits and losses" is the definition of - CORRECT ANSWER✔✔- partnertransferable
development rightsship
Property Owner A has the right to develop his property into 10 lots. He sells this right to
nearby Property Owner B who wishes to develop his property into additional lots. This is an
example of - CORRECT ANSWER✔✔- transferable development rights
What is the mean of the following set of gross rent multipliers? (95, 93, 120, 94, 93, 129) -
CORRECT ANSWER✔✔- 104
Short term money instruments are traded on the - CORRECT ANSWER✔✔- money market
Which entity is responsible for making periodic changes to USPAP? - CORRECT
ANSWER✔✔- Appraisal Standards Board
The real property market is generally classified as a(n) __________ market. - CORRECT
ANSWER✔✔- imperfect
The appraisal standards and qualification criteria that are published by The Appraisal
Foundation achieve legal authority by adoption, citation or implementation by - CORRECT
ANSWER✔✔- government agencies with the power to regulate or administrate
Eric pays $35,000 to have an inground swimming pool constructed in his back yard. When he
sells the property, he only receives $10,000 more for his property than what similar property
, sold for without a pool. This is an example of the principle of - CORRECT ANSWER✔✔-
contribution
"The ownership interest held by the lessor, which includes the right to receive the contract
rent specified in the lease plus the reversionary right when the lease expires" is the definition
of - CORRECT ANSWER✔✔- leased fee interest
When appraising an income producing property, you have the following GRMs indicated
from comparable sales (122, 159, 132, 126, 122, 173, 152, 126). What is the mode of the
GRMs? - CORRECT ANSWER✔✔- 122, 126 (bi-modal)
The current number of appraisal education hours required for Certified General Appraiser
applicants is ______ hours. - CORRECT ANSWER✔✔- 300
The ________ is responsible for establishing criteria for individuals to become real property
appraisers. - CORRECT ANSWER✔✔- Appraiser Qualifications Board
The federal financial institutions regulatory agencies directly involved in fair lending include
all of the following EXCEPT - CORRECT ANSWER✔✔- ASB
A homeowner fears the construction of a factory nearby will decrease the value of her
property. This illustrates the principle of - CORRECT ANSWER✔✔- externalities
Under the current qualification criteria, an applicant for Appraiser Trainee must have
completed ___ creditable hours of experience. - CORRECT ANSWER✔✔- 0
What is the mode of the following set of gross rent multipliers? (95, 93, 120, 94, 93, 129) -
CORRECT ANSWER✔✔- 93
What is the purpose of a state's statute of frauds? - CORRECT ANSWER✔✔- requires
certain documents to be in writing
A property has a first mortgage of $100,000, a second mortgage of $20,000, and a third
mortgage of $10,000. It is foreclosed and sold for $125,000. The holder of the third mortgage
