Texas SAE: Real Estate Appraisal Exam review
questions with answers
Which value-influencing DUST factor addresses the ease with which the property
can be conveyed to another? - CORRECT ANSWERS ✔✔Transferability
Which of the following formulas is used with the index method to find the
reproduction cost? - CORRECT ANSWERS ✔✔Present index ÷ Index at time of
construction x Original cost = Present cost
To arrive at the present cost, the appraiser applies a factor that represents the costs of
construction over time up to the appraisal date (present index ÷ index at time of
construction) multiplied by the subject building's original cost.
When possible, comparable sales from ______ should be used. - CORRECT
ANSWERS ✔✔The same neighborhood
Ownership in a planned unit development consists of ______. - CORRECT
ANSWERS ✔✔A parcel of land, the structures on it, and shared common areas
In what way is taxation an inherent burden on private landownership? - CORRECT
ANSWERS ✔✔Unpaid taxes become a lien against the property.
Bianca wants to buy a cooperative, but she's unsure that she can afford it. With a
cooperative, her share of mortgage interest and real estate taxes will be ______. -
CORRECT ANSWERS ✔✔Deductible on her personal income tax returns
As the resident in a cooperative, her share of mortgage interest and real estate taxes
is deductible on personal income tax returns.
,The Appraiser Independence Requirements protect which party or parties? -
CORRECT ANSWERS ✔✔The appraiser, the lender, and the consumer
Using the gross income multiplier (GIM) valuation method, a property's sales price is
divided by its gross income. If a property has a sales price of $100,000 and gross
income of $10,000, what is its GIM? - CORRECT ANSWERS ✔✔10X
(100,000/10,000)
Which professional is hired by the buyer and lender to give an opinion of value of the
property? - CORRECT ANSWERS ✔✔Appraiser
Which of the following best describes how an appraiser reconciles the adjusted sales
prices of the comparable properties to indicate the value of the subject property? -
CORRECT ANSWERS ✔✔The appraiser selects the adjusted sales price of the
property most like the subject to use as the indicated value.
What is the definition of an appraisal? - CORRECT ANSWERS ✔✔An estimate of
value for a specific purpose, party, and property as of a specific date
Which of the following properties requires the appraiser to include information
about the monthly fees charged by the property management, the location of the
subject property within a community, and the areas considered private or public? -
CORRECT ANSWERS ✔✔Condo Unit
If Mega Corporation owns real property, chances are it owns it in ______. -
CORRECT ANSWERS ✔✔Severalty Ownership
Corporations own property owned in severalty, like individuals do.
,James creates a trust to hold a piece of real estate he owns. He directs a corporate
fiduciary to hold title to the real estate and provides instructions for the
management, control, and disposition of the real estate upon his death. Given that
the trust only holds real estate, James likely set up a(n) ______ trust. - CORRECT
ANSWERS ✔✔Land Trust
A land trust is similar to other trusts except that it's formed specifically to hold real
estate.
The earth's surface, extending downward to the center of the earth and upward to
infinity, including permanently-attached natural objects, is called ______. -
CORRECT ANSWERS ✔✔This is a definition of land.
Which of these is a written description of a blueprint? - CORRECT ANSWERS
✔✔Building specifications
explain the blueprint and any features that may not be visible on that building plan.
What method of land valuation converts the amount of yearly income a site will
produce into a value using a capitalization rate? - CORRECT ANSWERS ✔✔Ground
Rent Capitalization Method (GRM)
As part of completing an appraisal using the cost approach method, what must
appraisers do? - CORRECT ANSWERS ✔✔Complete the cost approach section of the
URAR form
Which of the following analyzes net operating income (NOI) for a single year, and is
used when the property's income isn't expected to vary much over time?
, The _method converts a single year's expected income (or an annual average) into a
market value. This is the expected return on investment the property is capable of
producing in a single year: the first year of ownership. - CORRECT ANSWERS
✔✔Direct Capitalization
Real estate, plus all of the interests, benefits, and rights included in ownership, is also
known as ______. - CORRECT ANSWERS ✔✔Real Property
The US Census Bureau is a good source of what type of data needed by appraisers? -
CORRECT ANSWERS ✔✔General Data
What's the term for certified energy-efficient homes that have met specific
qualifications? - CORRECT ANSWERS ✔✔ENERGY STAR®-qualified home
The ______ system keeps air fresh by recycling air and removing odors and
pollutants. - CORRECT ANSWERS ✔✔Ventilation
Which part of the cost approach equation is considered the most difficult part to
estimate accurately?
__is considered the most difficult part of the cost approach equation to estimate
accurately, partially because it can vary considerably based on specific market
conditions as of the appraisal date. In addition, a buyer's measure of depreciation can
also vary quite a bit, depending on the price range of homes in the local area. -
CORRECT ANSWERS ✔✔Accrued Depreciation
When discounted cash flow analysis is used, what's discounted?
_is discounted to a present value when this method is used. - CORRECT ANSWERS
✔✔Anticipated future income
questions with answers
Which value-influencing DUST factor addresses the ease with which the property
can be conveyed to another? - CORRECT ANSWERS ✔✔Transferability
Which of the following formulas is used with the index method to find the
reproduction cost? - CORRECT ANSWERS ✔✔Present index ÷ Index at time of
construction x Original cost = Present cost
To arrive at the present cost, the appraiser applies a factor that represents the costs of
construction over time up to the appraisal date (present index ÷ index at time of
construction) multiplied by the subject building's original cost.
When possible, comparable sales from ______ should be used. - CORRECT
ANSWERS ✔✔The same neighborhood
Ownership in a planned unit development consists of ______. - CORRECT
ANSWERS ✔✔A parcel of land, the structures on it, and shared common areas
In what way is taxation an inherent burden on private landownership? - CORRECT
ANSWERS ✔✔Unpaid taxes become a lien against the property.
Bianca wants to buy a cooperative, but she's unsure that she can afford it. With a
cooperative, her share of mortgage interest and real estate taxes will be ______. -
CORRECT ANSWERS ✔✔Deductible on her personal income tax returns
As the resident in a cooperative, her share of mortgage interest and real estate taxes
is deductible on personal income tax returns.
,The Appraiser Independence Requirements protect which party or parties? -
CORRECT ANSWERS ✔✔The appraiser, the lender, and the consumer
Using the gross income multiplier (GIM) valuation method, a property's sales price is
divided by its gross income. If a property has a sales price of $100,000 and gross
income of $10,000, what is its GIM? - CORRECT ANSWERS ✔✔10X
(100,000/10,000)
Which professional is hired by the buyer and lender to give an opinion of value of the
property? - CORRECT ANSWERS ✔✔Appraiser
Which of the following best describes how an appraiser reconciles the adjusted sales
prices of the comparable properties to indicate the value of the subject property? -
CORRECT ANSWERS ✔✔The appraiser selects the adjusted sales price of the
property most like the subject to use as the indicated value.
What is the definition of an appraisal? - CORRECT ANSWERS ✔✔An estimate of
value for a specific purpose, party, and property as of a specific date
Which of the following properties requires the appraiser to include information
about the monthly fees charged by the property management, the location of the
subject property within a community, and the areas considered private or public? -
CORRECT ANSWERS ✔✔Condo Unit
If Mega Corporation owns real property, chances are it owns it in ______. -
CORRECT ANSWERS ✔✔Severalty Ownership
Corporations own property owned in severalty, like individuals do.
,James creates a trust to hold a piece of real estate he owns. He directs a corporate
fiduciary to hold title to the real estate and provides instructions for the
management, control, and disposition of the real estate upon his death. Given that
the trust only holds real estate, James likely set up a(n) ______ trust. - CORRECT
ANSWERS ✔✔Land Trust
A land trust is similar to other trusts except that it's formed specifically to hold real
estate.
The earth's surface, extending downward to the center of the earth and upward to
infinity, including permanently-attached natural objects, is called ______. -
CORRECT ANSWERS ✔✔This is a definition of land.
Which of these is a written description of a blueprint? - CORRECT ANSWERS
✔✔Building specifications
explain the blueprint and any features that may not be visible on that building plan.
What method of land valuation converts the amount of yearly income a site will
produce into a value using a capitalization rate? - CORRECT ANSWERS ✔✔Ground
Rent Capitalization Method (GRM)
As part of completing an appraisal using the cost approach method, what must
appraisers do? - CORRECT ANSWERS ✔✔Complete the cost approach section of the
URAR form
Which of the following analyzes net operating income (NOI) for a single year, and is
used when the property's income isn't expected to vary much over time?
, The _method converts a single year's expected income (or an annual average) into a
market value. This is the expected return on investment the property is capable of
producing in a single year: the first year of ownership. - CORRECT ANSWERS
✔✔Direct Capitalization
Real estate, plus all of the interests, benefits, and rights included in ownership, is also
known as ______. - CORRECT ANSWERS ✔✔Real Property
The US Census Bureau is a good source of what type of data needed by appraisers? -
CORRECT ANSWERS ✔✔General Data
What's the term for certified energy-efficient homes that have met specific
qualifications? - CORRECT ANSWERS ✔✔ENERGY STAR®-qualified home
The ______ system keeps air fresh by recycling air and removing odors and
pollutants. - CORRECT ANSWERS ✔✔Ventilation
Which part of the cost approach equation is considered the most difficult part to
estimate accurately?
__is considered the most difficult part of the cost approach equation to estimate
accurately, partially because it can vary considerably based on specific market
conditions as of the appraisal date. In addition, a buyer's measure of depreciation can
also vary quite a bit, depending on the price range of homes in the local area. -
CORRECT ANSWERS ✔✔Accrued Depreciation
When discounted cash flow analysis is used, what's discounted?
_is discounted to a present value when this method is used. - CORRECT ANSWERS
✔✔Anticipated future income
