Real Estate Appraisal Missed Questions
& answers.
Why isn't the cost approach usually used to determine the value of older properties? ANS - It's difficult
to accurately estimate depreciation with an older property.
For which of the following properties will the appraiser provide a value for owner shares of a
corporation? ANS - Unit in cooperative housing
Which type of roof features a ridge beam or girder that forms the top line of the roof? ANS - Rafter roof
The Appraiser Qualifications Board has set a minimum of 75 hours of appraiser education for which
category of appraisers? ANS - Appraiser trainee
Which of the following is part of the eave system? ANS - Fascia
Which of the following groups is responsible for developing the minimum federal licensing and
certification requirements for real property appraisers? ANS - Appraisal Qualifications Board
Which of the following units of measurement is used when determining the length of a wall? ANS -
Feet
With cooperatives, the resident's share of mortgage interest and real estate taxes is ______. ANS -
Deductible on personal income tax returns
When adjusting for differences between the comparable and subject properties, which type of
adjustments should an appraiser make first? ANS - Percentage adjustments
Which type of option is considered a benefit to the lessee rather than to the lessor? ANS - Renewal
, When working with commercial properties, the appraiser develops an estimate of market rent by
______ and comparing rents across the subject and comparable properties. ANS - Converting rental
income to annual dollars per square foot
Which of the following accounts for the cost of inflation and the time value of money? ANS -
Discounting
Which one of the following statements is true about land trusts? ANS - Land trusts generally continue
for a specified term, such as 10, 20, or 30 years.
A steel chassis, tongue, axles, and wheels are telltale signs of what type of home? ANS - Manufactured
What term means the power of the government to take private land for public use? ANS - Eminent
domain
Lenders prefer that appraisers select at least one comparable that is superior and a comparable that is
inferior to the subject property. What is this method of selecting comparable properties called? ANS -
Bracketing
Joe gave land to a school, but still wanted to have some control over its use, so a deed was prepared
that gave the school title as long as the land is used for educational purposes. What type of interest does
the school have? ANS - Fee simple determinable (A fee simple determinable has limitations as to what
can or can't be done with a property. It uses phrases such as "so long as," "while," or "during" to
describe the required condition.)
Alexi is using the economic age-life method to measure depreciation. By what other name is this
method known? ANS - Age-life
Donna is about to do an appraisal of a two-story home that's under contract. Which of the following
tasks can she do before her site visit? ANS - Get a copy of the subject property's purchase agreement.
When the ground rent capitalization method is used, a capitalization rate is applied to ______ in order
to arrive at a value. ANS - The amount of yearly income
& answers.
Why isn't the cost approach usually used to determine the value of older properties? ANS - It's difficult
to accurately estimate depreciation with an older property.
For which of the following properties will the appraiser provide a value for owner shares of a
corporation? ANS - Unit in cooperative housing
Which type of roof features a ridge beam or girder that forms the top line of the roof? ANS - Rafter roof
The Appraiser Qualifications Board has set a minimum of 75 hours of appraiser education for which
category of appraisers? ANS - Appraiser trainee
Which of the following is part of the eave system? ANS - Fascia
Which of the following groups is responsible for developing the minimum federal licensing and
certification requirements for real property appraisers? ANS - Appraisal Qualifications Board
Which of the following units of measurement is used when determining the length of a wall? ANS -
Feet
With cooperatives, the resident's share of mortgage interest and real estate taxes is ______. ANS -
Deductible on personal income tax returns
When adjusting for differences between the comparable and subject properties, which type of
adjustments should an appraiser make first? ANS - Percentage adjustments
Which type of option is considered a benefit to the lessee rather than to the lessor? ANS - Renewal
, When working with commercial properties, the appraiser develops an estimate of market rent by
______ and comparing rents across the subject and comparable properties. ANS - Converting rental
income to annual dollars per square foot
Which of the following accounts for the cost of inflation and the time value of money? ANS -
Discounting
Which one of the following statements is true about land trusts? ANS - Land trusts generally continue
for a specified term, such as 10, 20, or 30 years.
A steel chassis, tongue, axles, and wheels are telltale signs of what type of home? ANS - Manufactured
What term means the power of the government to take private land for public use? ANS - Eminent
domain
Lenders prefer that appraisers select at least one comparable that is superior and a comparable that is
inferior to the subject property. What is this method of selecting comparable properties called? ANS -
Bracketing
Joe gave land to a school, but still wanted to have some control over its use, so a deed was prepared
that gave the school title as long as the land is used for educational purposes. What type of interest does
the school have? ANS - Fee simple determinable (A fee simple determinable has limitations as to what
can or can't be done with a property. It uses phrases such as "so long as," "while," or "during" to
describe the required condition.)
Alexi is using the economic age-life method to measure depreciation. By what other name is this
method known? ANS - Age-life
Donna is about to do an appraisal of a two-story home that's under contract. Which of the following
tasks can she do before her site visit? ANS - Get a copy of the subject property's purchase agreement.
When the ground rent capitalization method is used, a capitalization rate is applied to ______ in order
to arrive at a value. ANS - The amount of yearly income
