Appraisal Final All Exam Questions/Answers Graded A+
2025/2026
Avulsion - 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 - The washing against a shoreline; depositing sand or soil so as to gradually
form firm ground
Amenities Benefit - A gain resulting from a quality of life issue. Can be tangible, or
intangible, on the property or off.
Amortization - The equal payment amount necessary to satisfy the interest and principal
of a loan.
Amortization of $1 - 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) - 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 - A purchase/sale decision based on the perceived future value.
Appraisal - The act or process of developing an opinion of value, or an opinion of value
based on generally accepted appraisal methods.
Appraisal Methodology - Generally accepted processes to identify value.
Appraisal Process - Define Problem - Scope of Work - Data Collection & Analysis -
Approach to Value - Reconciliation & Final Opinion - Report
Appraisal Standards Board (ASB) - A committee under the Appraisal Foundation
created to develop professional standards of practice for appraisals.
Appraisal Subcommittee - 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 - 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) - A committee under the Appraisal Foundation
created to establish appraiser qualifications.
AQB - Appraiser Qualifications Board
Arm's Length Transaction - An agreement in which neither side has an unusual
advantage, or overriding influence.
ASB - Appraisal Standards Board
Assessment - A value amount placed on a property by the local community for taxation
purposes
Attached Type - More than one unit connected together, having at least one common
wall.
Avulsion - 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 - Occurs when supply and demand factors at the point of equilibrium.
Band of Investment Method - Is used to determine the overall rate of return on a
property which is encumbered by a mortgage
Banks - Financial entities engaged in the exchange of currency, lending, and storage of
legal tender.
Bilateral Contract - A contract where both parties have made promises in exchange to
the other party, therefore a "meeting of the minds" has occurred and both parties are
willing participants in the contract.
Example: A demonstration of this is when one party agrees to buy a home and the other
party agrees to sell.
Bundle of Rights - The combined dominion over utilization of a property, including
possession, control, enjoyment, and exclusion .
CAM Fees - Common Area Maintenance.
The operational and maintenance costs of the common areas.
Capital - A sum of money available for investment
Capital Gain - A sum of money or profit made from a sale of an asset.
Capital Improvements - These are renovations or modifications which change the
characteristics of
, Capitalization - The conversion of income into value.
Capitalization Rate "R" - An income to value percentage used as an indicator of value.
A Capitalization Rate is the rate your investment is paid back and is typically based on
the Net Operating Income (NOI). See "IRV" also
Example:
If you invest $1,000,000 on a property that has an NOI of $100,000, the Cap rate is
10%, meaning it will take 10 years to pay back the initial investment. This is the rate of
return. If the NOI was $50,000, the Cap rate would be 5% and it would take 20 years to
accumulate the original investment.
Census - A counting of the populous conducted by the federal government every 10
years, as prescribed in the U.S. Constitution.
Change - In relation to a "value principle", is the transformation from one set of
conditions to another.
Clearing House for Mortgages - The original name of the secondary mortgage market.
CMA - Competitive Market Analysis
Comparable - A property which is considered and alternative, similar, and competing to
the subject property.
Competency - Requiring knowledge, experience, and ability to properly complete an
assignment.
Competitive Market Analysis (CMA) - Utilizes sold properties, and properties currently
offered for sale, to develop a listing price for marketing purposes.
Compounding - The process of combining two or more things to form one new whole. In
the financial context, this is the process by which income is earned on income that had
previously been earned. Interest income is earned on an initial investment amount plus
the interest the initial investment had earned previously.
The process of finding the future worth of a dollar using a specified rate and time period.
The reverse of Discounting.
Also used to describe the frequency with which banks add interest onto principal.
Typically banks compound Daily, Monthly, Quarterly or Annually.
Example:If $100 is invested at a 5% interest rate (compounded annually), the investor
will earned $5 in interest the first year and $5.25 the second year. The earnings of the
2025/2026
Avulsion - 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 - The washing against a shoreline; depositing sand or soil so as to gradually
form firm ground
Amenities Benefit - A gain resulting from a quality of life issue. Can be tangible, or
intangible, on the property or off.
Amortization - The equal payment amount necessary to satisfy the interest and principal
of a loan.
Amortization of $1 - 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) - 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 - A purchase/sale decision based on the perceived future value.
Appraisal - The act or process of developing an opinion of value, or an opinion of value
based on generally accepted appraisal methods.
Appraisal Methodology - Generally accepted processes to identify value.
Appraisal Process - Define Problem - Scope of Work - Data Collection & Analysis -
Approach to Value - Reconciliation & Final Opinion - Report
Appraisal Standards Board (ASB) - A committee under the Appraisal Foundation
created to develop professional standards of practice for appraisals.
Appraisal Subcommittee - 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 - 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) - A committee under the Appraisal Foundation
created to establish appraiser qualifications.
AQB - Appraiser Qualifications Board
Arm's Length Transaction - An agreement in which neither side has an unusual
advantage, or overriding influence.
ASB - Appraisal Standards Board
Assessment - A value amount placed on a property by the local community for taxation
purposes
Attached Type - More than one unit connected together, having at least one common
wall.
Avulsion - 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 - Occurs when supply and demand factors at the point of equilibrium.
Band of Investment Method - Is used to determine the overall rate of return on a
property which is encumbered by a mortgage
Banks - Financial entities engaged in the exchange of currency, lending, and storage of
legal tender.
Bilateral Contract - A contract where both parties have made promises in exchange to
the other party, therefore a "meeting of the minds" has occurred and both parties are
willing participants in the contract.
Example: A demonstration of this is when one party agrees to buy a home and the other
party agrees to sell.
Bundle of Rights - The combined dominion over utilization of a property, including
possession, control, enjoyment, and exclusion .
CAM Fees - Common Area Maintenance.
The operational and maintenance costs of the common areas.
Capital - A sum of money available for investment
Capital Gain - A sum of money or profit made from a sale of an asset.
Capital Improvements - These are renovations or modifications which change the
characteristics of
, Capitalization - The conversion of income into value.
Capitalization Rate "R" - An income to value percentage used as an indicator of value.
A Capitalization Rate is the rate your investment is paid back and is typically based on
the Net Operating Income (NOI). See "IRV" also
Example:
If you invest $1,000,000 on a property that has an NOI of $100,000, the Cap rate is
10%, meaning it will take 10 years to pay back the initial investment. This is the rate of
return. If the NOI was $50,000, the Cap rate would be 5% and it would take 20 years to
accumulate the original investment.
Census - A counting of the populous conducted by the federal government every 10
years, as prescribed in the U.S. Constitution.
Change - In relation to a "value principle", is the transformation from one set of
conditions to another.
Clearing House for Mortgages - The original name of the secondary mortgage market.
CMA - Competitive Market Analysis
Comparable - A property which is considered and alternative, similar, and competing to
the subject property.
Competency - Requiring knowledge, experience, and ability to properly complete an
assignment.
Competitive Market Analysis (CMA) - Utilizes sold properties, and properties currently
offered for sale, to develop a listing price for marketing purposes.
Compounding - The process of combining two or more things to form one new whole. In
the financial context, this is the process by which income is earned on income that had
previously been earned. Interest income is earned on an initial investment amount plus
the interest the initial investment had earned previously.
The process of finding the future worth of a dollar using a specified rate and time period.
The reverse of Discounting.
Also used to describe the frequency with which banks add interest onto principal.
Typically banks compound Daily, Monthly, Quarterly or Annually.
Example:If $100 is invested at a 5% interest rate (compounded annually), the investor
will earned $5 in interest the first year and $5.25 the second year. The earnings of the
