Appraising Exam Questions with correct
Answers
Absorption Study - Correct Answers -An analysis of supply and demand concentrating
on the aspects of changes in product inventory when properties are offered and sold.
The focus is to identify the proper inventory which creates balance.
Accession - Correct Answers -Additional property rights that an owner acquires when
improvements (e.g. new carpet, paint, etc.) and/or additions are attached to the property
by the tenant at the tenant's own cost. This legal right means that the owner will acquire
any improvements to the property upon termination of the lease.
Accretion - Correct Answers -Land located next to a body of water increasing due to
water depositing additional soil (or waterborne solid material) gradually.
Accrued Depreciation - Correct Answers -The total amount of depreciation attributable
to the property.
Acre - Correct Answers -43,560 square feet
Avulsion - Correct Answers -To tear off. The sudden loss of land or soil due to a sudden
natural act (e.g. earthquake, sudden change of river flow, etc.).
Alluvion - Correct Answers -The washing against a shoreline; depositing sand or soil so
as to gradually form firm ground
Amenities Benefit - Correct Answers -A gain resulting from a quality of life issue. Can be
tangible, or intangible, on the property or off.
Amortization - Correct Answers -The equal payment amount necessary to satisfy the
interest and principal of a loan.
Amortization of $1 - Correct Answers -The period payment schedule necessary,
including interest and principle, to reduce a $1 (or any amount) debt with equal
payments. See "Mortgage Constant". One of the six functions of a dollar found on
standard financial tables.
Annual Debt Service (ADS) - Correct Answers -The annual payments of a loan. It is
figured by multiplying the mortgage payment by the number of payments in one year.
Remember, it includes both the annual interest and principle payments.
Formula:
Monthly mortgage payments (with principle and interest) x 12 months.
,Anticipation - Correct Answers -A purchase/sale decision based on the perceived future
value.
Appraisal - Correct Answers -The act or process of developing an opinion of value, or
an opinion of value based on generally accepted appraisal methods.
Appraisal Methodology - Correct Answers -Generally accepted processes to identify
value.
Appraisal Process - Correct Answers -Define Problem - Scope of Work - Data Collection
& Analysis - Approach to Value - Reconciliation & Final Opinion - Report
Appraisal Standards Board (ASB) - Correct Answers -A committee under the Appraisal
Foundation created to develop professional standards of practice for appraisals.
Appraisal Subcommittee - Correct Answers -The government oversight entity charged
with ensuring appraiser compliance with the federal laws. Their mandate includes,
monitoring the FFIRA, states, and the Appraisal Foundation for compliance wit Title XI,
and maintaining a registry of appraisers eligible to appraise FRT's.
Appraiser - Correct Answers -One who performs professional appraisal services for
client's, using generally accepted appraisal methods and adhering to all state and
federal guidelines.
Appraiser Qualifications Board (AQB) - Correct Answers -A committee under the
Appraisal Foundation created to establish appraiser qualifications.
Title XI - Correct Answers -Regulations established by Congress under FIRREA
governing the appraisal profession.
Total Gross Income (TGI) - Correct Answers -The total property income before
subtracting vacancy and expenses. Sometimes called "Potential Gross Income."
Townhouse - Correct Answers -Multiple housing units connected by at least one
common wall.
Traditional - Correct Answers -The most common style of residential construction.
Trends - Correct Answers -The tracking of occurrences of events over a period of time.
Trust Deed - Correct Answers -The agreement between borrower and lender. Ensures
3rd party (trustee) will hold title of borrower until debt is paid to lender. This document
gives a lender the right to foreclose on the property if the borrower defaults on the loan.
, Undivided Interest - Correct Answers -An apportioned ownership which happens when
two or more parties have interest in the same property. The fractional ownership interest
between the two or more parties may be equal or unequal.
Uniform Standards of Professional Appraisal Practice (USPAP) - Correct Answers -New
minimum standards and guidelines for appraisals.
Unilateral Contract - Correct Answers -A contract that is a one-sided agreement. One
party agrees to something in order to persuade the other party to act
Example:
An example would be one party agreeing to pay a commission if another party can find
a renter.
USPAP - Correct Answers -Uniform Standards of Professional Appraisal Practice
Utility Easement - Correct Answers -The right to use or enter another person's land for
utility lines.
V - Correct Answers -The "V" stands for Vacancy
AQB - Correct Answers -Appraiser Qualifications Board
Arm's Length Transaction - Correct Answers -An agreement in which neither side has
an unusual advantage, or overriding influence.
ASB - Correct Answers -Appraisal Standards Board
Assessment - Correct Answers -A value amount placed on a property by the local
community for taxation purposes
Attached Type - Correct Answers -More than one unit connected together, having at
least one common wall.
Avulsion - Correct Answers -To tear off. The sudden loss of land or soil due to a sudden
natural act (e.g. earthquake, sudden change of river flow, etc.).
Balance - Correct Answers -Occurs when supply and demand factors at the point of
equilibrium.
Band of Investment Method - Correct Answers -Is used to determine the overall rate of
return on a property which is encumbered by a mortgage
Banks - Correct Answers -Financial entities engaged in the exchange of currency,
lending, and storage of legal tender.
Answers
Absorption Study - Correct Answers -An analysis of supply and demand concentrating
on the aspects of changes in product inventory when properties are offered and sold.
The focus is to identify the proper inventory which creates balance.
Accession - Correct Answers -Additional property rights that an owner acquires when
improvements (e.g. new carpet, paint, etc.) and/or additions are attached to the property
by the tenant at the tenant's own cost. This legal right means that the owner will acquire
any improvements to the property upon termination of the lease.
Accretion - Correct Answers -Land located next to a body of water increasing due to
water depositing additional soil (or waterborne solid material) gradually.
Accrued Depreciation - Correct Answers -The total amount of depreciation attributable
to the property.
Acre - Correct Answers -43,560 square feet
Avulsion - Correct Answers -To tear off. The sudden loss of land or soil due to a sudden
natural act (e.g. earthquake, sudden change of river flow, etc.).
Alluvion - Correct Answers -The washing against a shoreline; depositing sand or soil so
as to gradually form firm ground
Amenities Benefit - Correct Answers -A gain resulting from a quality of life issue. Can be
tangible, or intangible, on the property or off.
Amortization - Correct Answers -The equal payment amount necessary to satisfy the
interest and principal of a loan.
Amortization of $1 - Correct Answers -The period payment schedule necessary,
including interest and principle, to reduce a $1 (or any amount) debt with equal
payments. See "Mortgage Constant". One of the six functions of a dollar found on
standard financial tables.
Annual Debt Service (ADS) - Correct Answers -The annual payments of a loan. It is
figured by multiplying the mortgage payment by the number of payments in one year.
Remember, it includes both the annual interest and principle payments.
Formula:
Monthly mortgage payments (with principle and interest) x 12 months.
,Anticipation - Correct Answers -A purchase/sale decision based on the perceived future
value.
Appraisal - Correct Answers -The act or process of developing an opinion of value, or
an opinion of value based on generally accepted appraisal methods.
Appraisal Methodology - Correct Answers -Generally accepted processes to identify
value.
Appraisal Process - Correct Answers -Define Problem - Scope of Work - Data Collection
& Analysis - Approach to Value - Reconciliation & Final Opinion - Report
Appraisal Standards Board (ASB) - Correct Answers -A committee under the Appraisal
Foundation created to develop professional standards of practice for appraisals.
Appraisal Subcommittee - Correct Answers -The government oversight entity charged
with ensuring appraiser compliance with the federal laws. Their mandate includes,
monitoring the FFIRA, states, and the Appraisal Foundation for compliance wit Title XI,
and maintaining a registry of appraisers eligible to appraise FRT's.
Appraiser - Correct Answers -One who performs professional appraisal services for
client's, using generally accepted appraisal methods and adhering to all state and
federal guidelines.
Appraiser Qualifications Board (AQB) - Correct Answers -A committee under the
Appraisal Foundation created to establish appraiser qualifications.
Title XI - Correct Answers -Regulations established by Congress under FIRREA
governing the appraisal profession.
Total Gross Income (TGI) - Correct Answers -The total property income before
subtracting vacancy and expenses. Sometimes called "Potential Gross Income."
Townhouse - Correct Answers -Multiple housing units connected by at least one
common wall.
Traditional - Correct Answers -The most common style of residential construction.
Trends - Correct Answers -The tracking of occurrences of events over a period of time.
Trust Deed - Correct Answers -The agreement between borrower and lender. Ensures
3rd party (trustee) will hold title of borrower until debt is paid to lender. This document
gives a lender the right to foreclose on the property if the borrower defaults on the loan.
, Undivided Interest - Correct Answers -An apportioned ownership which happens when
two or more parties have interest in the same property. The fractional ownership interest
between the two or more parties may be equal or unequal.
Uniform Standards of Professional Appraisal Practice (USPAP) - Correct Answers -New
minimum standards and guidelines for appraisals.
Unilateral Contract - Correct Answers -A contract that is a one-sided agreement. One
party agrees to something in order to persuade the other party to act
Example:
An example would be one party agreeing to pay a commission if another party can find
a renter.
USPAP - Correct Answers -Uniform Standards of Professional Appraisal Practice
Utility Easement - Correct Answers -The right to use or enter another person's land for
utility lines.
V - Correct Answers -The "V" stands for Vacancy
AQB - Correct Answers -Appraiser Qualifications Board
Arm's Length Transaction - Correct Answers -An agreement in which neither side has
an unusual advantage, or overriding influence.
ASB - Correct Answers -Appraisal Standards Board
Assessment - Correct Answers -A value amount placed on a property by the local
community for taxation purposes
Attached Type - Correct Answers -More than one unit connected together, having at
least one common wall.
Avulsion - Correct Answers -To tear off. The sudden loss of land or soil due to a sudden
natural act (e.g. earthquake, sudden change of river flow, etc.).
Balance - Correct Answers -Occurs when supply and demand factors at the point of
equilibrium.
Band of Investment Method - Correct Answers -Is used to determine the overall rate of
return on a property which is encumbered by a mortgage
Banks - Correct Answers -Financial entities engaged in the exchange of currency,
lending, and storage of legal tender.
