Appraisal Exam UPDATED ACTUAL
Questions and CORRECT Answers
How is the gross adjustment percentage calculated in the sales comparison approach? -
CORRECT ANSWER - Dividing the total dollar adjustment by the comparable sales price
What adjustment is usually dollar amounts instead of percentage - CORRECT ANSWER -
Physical Features
What adjustments do appraisers make first? - CORRECT ANSWER - Percentage Adjustments
To determine the reproduction cost, the appraiser index factor is multiplied by what? -
CORRECT ANSWER - The original construction cost
What estimates property loss in value with curable and incurable items - CORRECT
ANSWER - Observed Conditions
What applies capitalization rate to income for similar properties? - CORRECT ANSWER -
Capitalized Value
What uses comparable properties' sales price to figure out the value of a depreciated item? -
CORRECT ANSWER - Market Extraction
What is the easiest method to measure depreciation? - CORRECT ANSWER - Age-Life
What is known as the 'breakdown' method? - CORRECT ANSWER - Observed Condition
What is known as the 'Economic Age-Life' method? - CORRECT ANSWER - Age-Life
, Which measure of time is used when a structure is expected to remain standing? - CORRECT
ANSWER - Physical life
What type of properties use Gross Rent Multiplier (GRM)? - CORRECT ANSWER - One to
Four Family Units
What type of properties use Gross Income Multiplier (GIM)? - CORRECT ANSWER - Five
units or Larger
What is the most thorough method of using income approach? - CORRECT ANSWER - Yield
Capitalization
What is known as the amount of money returned from an investment? - CORRECT
ANSWER - Yield
When working with commercial properties, appraisers develop an estimate of market rent by -
CORRECT ANSWER - Converting annual dollars per sq ft
When using Income Capitalization, where is the cap rate applied? - CORRECT ANSWER -
To the Net Operating Income
To estimate market rent for residential properties, appraisers do what? - CORRECT
ANSWER - Convert monthly rental income to annual dollars per room
How is NOI used in an income-based approach? - CORRECT ANSWER - NOI is divided by
the Cap Rate
What can be used to calculate the occupancy rate and rent to make a proft? - CORRECT
ANSWER - The Break-Even Ratio
How is NIR calculated? - CORRECT ANSWER - NOI/Effective Gross Income
Questions and CORRECT Answers
How is the gross adjustment percentage calculated in the sales comparison approach? -
CORRECT ANSWER - Dividing the total dollar adjustment by the comparable sales price
What adjustment is usually dollar amounts instead of percentage - CORRECT ANSWER -
Physical Features
What adjustments do appraisers make first? - CORRECT ANSWER - Percentage Adjustments
To determine the reproduction cost, the appraiser index factor is multiplied by what? -
CORRECT ANSWER - The original construction cost
What estimates property loss in value with curable and incurable items - CORRECT
ANSWER - Observed Conditions
What applies capitalization rate to income for similar properties? - CORRECT ANSWER -
Capitalized Value
What uses comparable properties' sales price to figure out the value of a depreciated item? -
CORRECT ANSWER - Market Extraction
What is the easiest method to measure depreciation? - CORRECT ANSWER - Age-Life
What is known as the 'breakdown' method? - CORRECT ANSWER - Observed Condition
What is known as the 'Economic Age-Life' method? - CORRECT ANSWER - Age-Life
, Which measure of time is used when a structure is expected to remain standing? - CORRECT
ANSWER - Physical life
What type of properties use Gross Rent Multiplier (GRM)? - CORRECT ANSWER - One to
Four Family Units
What type of properties use Gross Income Multiplier (GIM)? - CORRECT ANSWER - Five
units or Larger
What is the most thorough method of using income approach? - CORRECT ANSWER - Yield
Capitalization
What is known as the amount of money returned from an investment? - CORRECT
ANSWER - Yield
When working with commercial properties, appraisers develop an estimate of market rent by -
CORRECT ANSWER - Converting annual dollars per sq ft
When using Income Capitalization, where is the cap rate applied? - CORRECT ANSWER -
To the Net Operating Income
To estimate market rent for residential properties, appraisers do what? - CORRECT
ANSWER - Convert monthly rental income to annual dollars per room
How is NOI used in an income-based approach? - CORRECT ANSWER - NOI is divided by
the Cap Rate
What can be used to calculate the occupancy rate and rent to make a proft? - CORRECT
ANSWER - The Break-Even Ratio
How is NIR calculated? - CORRECT ANSWER - NOI/Effective Gross Income
