Real Estate Appraisal Exam Questions with Verified Solutions Rated 100%

Real Estate Appraisal Exam Questions with Verified Solutions Rated 100% The act or process of critically studying a report prepared by another is called: - Answers A review Federally related transactions are transactions: - Answers involving a federal agency or regulatory An item that was formerly personal property that has become real property is called: - Answers A fixture An appurtenance is something that - Answers Goes along with the ownership of the land Possessory interests are called estates while non-possessory interests are known as - Answers Encumbrances An interest that is held by a creditor is called a - Answers Lien A property that is subject to an easement is known as - Answers Servient tenement The power of the government to take private property for public use is called - Answers Eminent domain Ad valorem is Latin for - Answers According to value Escheat is the power to have property - Answers Revert to the state if the owner dies without a will All of the following are classified as characteristics of value except - Answers Attractiveness Which of the following refers to the cost of labor and materials used to build an improvement - Answers Direct costs The cost to create an exact replica of a building using the same design, materials, and construction methods as the original is called - Answers Reproduction cost Which appraisal principle holds that value of a property cannot exceed the value of the equivalent substitute properties that are available in the marketplace - Answers Principle of substitution Completion occurs when - Answers Supply and demand are out of balance What principle recognizes that the forces of supply and demand are in constant flux - Answers Principle of change What principle states that value is affected by the expectation of future benefits to be gained from owning property - Answers Principle of anticipation The principle of conformity states that value is enhanced when the uses of surrounding properties - Answers Conform to the use of the subject property Which of the following are considered agents of production - Answers Capital and land, labor and coordination Which of the following describes the value of a property to a particular investor with specific investment goals - Answers Investment value The appraisal process begins by - Answers defining the appraisal problem in defining the appraisal problem, it is important to identify the - Answers the real estate that is the subject of the appraisal, under the proper conditions the most probable price a property should bring in a competitive and open market is called - Answers the market value a value estimate that is made as of a specific date is called the - Answers effective date of the appraisal the valuation date is - Answers the date as of which value is estimated and commonly the date that the appraiser inspects the subject property a fact appraiser assumes to be true but does not independently verify is called - Answers an assumption a statement that limits the application of the conclusion contained in a report is called - Answers a limiting condition appraisal data can be classified as - Answers general or specific, primary or secondary site improvements that are valued as part of the land such as clearing and grading as referred to as - Answers off-site improvements all of the following are considered to be one of the basic types of appraisal reports except - Answers the drive-thru report which of the following is true concerning land parcels - Answers they can also be referred to as lots plots and tracts, they may be any piece of land that can be identified by legal description, and they can be improved or unimproved land the metes and bounds system identifies property in relation to its - Answers boundaries, distances, and angles an identifiable, fixed position from which measurements may be taken is called - Answers a reference point all of the following are true statements except - Answers a principal meridian can run north and south or east and west describing land by reference to an official map showing the boundaries of the parcel is - Answers the lot and block system and a subdivision map the six of something in three dimensions is - Answers volume which of the following is a true statement - Answers a right triangle has two sides that meet a right triangle and a percentage is a number divided by 100 which of the following is the formula used to calculate interest - Answers interest=Prinicpal x Rate x Time the process of calculating the present value of a future payment amount is known as - Answers discounting which method holds that the present value of recapturing an investment from an income stream is based on a single discount rate - Answers the inward method