Basic Appraisal Principles Test Study
Questions
True bor bFalse? bWhen bdeveloping ban bopinion bof bsite bvalue bof ban bimproved
bproperty, ban bappraiser bneeds bto bconsider bthe bhighest band bbest buse bof bthe
bproperty bas bthough bvacant. b- bcorrect banswers✔✔TRUE
When bdeveloping ban bopinion bof bhighest band bbest buse, bwhat bis bthe bfinal bcriteria
bthat bis bapplied? b- bcorrect banswers✔✔maximally bproductive
A blot bowner bconstructs ba bnew b4,000 bsquare bfoot bhome bin ba bneighborhood bof
bmostly b800 bto b1,200 bsquare bfoot bhomes. bThe bvalue bof bthe bnew b4,000 bsquare
bfoot bhome bis bdiminished bby bthe bsmaller bhomes bsurrounding bit. bThis bis ban
bexample bof bwhich bvaluation bprinciple? b- bcorrect banswers✔✔regression
Unfortunately, bwith breal bestate, bthe b______ bside bof bthe bequation bis brelatively bfixed
band bslow bto bchange bwhereas bthe b______ bside bof bthe bequation bcan bchange
bquickly. b- bcorrect banswers✔✔supply, bdemand
The bresult bof bthe bcause band beffect brelationship bamong bthe bforces bthat binfluence
breal bproperty bvalue" bis bthe bdefinition bof bthe bprinciple bof b- bcorrect
banswers✔✔change
In bthe bagents bof bproduction btheory, bthe breturn bon bland bwould bbe b__________
band bthe breturn bon blabor bwould bbe b________. b- bcorrect banswers✔✔rent, bwages
The bperception bthat bvalue bis bcreated bby bthe bexpectation bof bbenefits bto bbe bderived
bin bthe bfuture" bis bthe bdefinition bof bthe bprinciple bof b- bcorrect banswers✔✔anticipation
"The bprinciple bthat breal bproperty bvalue bis bcreated band bsustained bwhen bcontrasting,
bopposing, bor binteracting belements bare bin ba bstate bof bequilibrium" bis bthe bdefinition
bof bthe bprinciple bof b- bcorrect banswers✔✔balance
The bprinciple bthat bstudies bthe brelationships bbetween bparticipants bin bthe
bmarketplace, bsuch bas bbuyers band bsellers bor blandlords band btenants, bis bthe
bprinciple bof b- bcorrect banswers✔✔competition
When bestimating bthe bvalue bof ba bswimming bpool bto ba bresidential bproperty, bthe
bmost bimportant bprinciple bis bthe bprinciple bof b- bcorrect banswers✔✔contribution
,"The bconcept bthat bsuccessive bincrements bof bone bor bmore bagents bof bproduction
badded bto bfixed bamounts bof bthe bother bagents bwill benhance bincome, bin bdollars,
bbenefits, bor bamenities, bat ban bincreasing brate buntil ba bmaximum breturn bis breached.
bThen, bincome bwill bdecrease buntil bthe bincrement bto bvalue bbecomes bincreasingly
bless bthan bthe bvalue bof bthe badded bagent bor bagents" bis bthe bdefinition bof bthe
bprinciple bof b- bcorrect banswers✔✔increasing band bdecreasing breturns
Which bcharacteristic bwould bNOT bbe bassociated bwith ba bgood bappraiser? b- bcorrect
banswers✔✔biased
Which bcollege-level bcourse bwould bprobably bbe bLEAST bhelpful bto ban bappraiser? b-
bcorrect banswers✔✔Biology
True bor bFalse: bAll bappraisals bare bperformed bfor bmortgage blending bpurposes. b-
bcorrect banswers✔✔False
A bcertified bresidential bappraiser bneeds b____ bhours bof bcontinuing beducation bper
byear bto brenew bhis bor bher bcertification? b- bcorrect banswers✔✔14
True bor bFalse: bAn bapplicant bfor bCertified bGeneral bappraiser bmust bpossess bat
bleast ban bassociate's bdegree bfrom ban baccredited bcollege bor buniversity. b- bcorrect
banswers✔✔False
A blicensed bor bcertified bappraiser bmust btake bthe b7-hour bUSPAP bUpdate bcourse b-
bcorrect banswers✔✔every b2 byears
The brequirements bfor bstate blicensed band bcertified bappraisers bhad btheir bgenesis bin
b- bcorrect banswers✔✔FIRREA
True bor bFalse: bThe bend bof bthe bU.S. bhousing bboom bmeant bthat bappraisal bbusiness
bdropped bsignificantly bacross bthe bcountry. b- bcorrect banswers✔✔False
True bor bFalse: bAttorneys boften bengage bappraisers bto bcomplete bassignments bfor
bestates band bdivorces. b- bcorrect banswers✔✔False
An bapplicant bfor bCertified bGeneral bAppraiser bmust bobtain b_______ bexperience
bhours bin bno bfewer bthan b_____ bmonths. b- bcorrect banswers✔✔3,000, b30
True bor bFalse: bSome bstate bagencies bemploy bfull-time bstaff bappraisers. b- bcorrect
banswers✔✔True
If byou bhave bspecific bquestions babout bappraisal bcertification bor blicensure
brequirements bin byour bstate, byou bshould b- bcorrect banswers✔✔contact bthe
bappraiser blicensing band bcertification bagency bin byour bstate
, Under bthe b2008 bcriteria, ban bAppraiser bTrainee bis bpermitted bto bhave b________
bsupervising bappraiser, bbut ba bsupervising bappraiser bmay bnot bsupervise b________
btrainees. b- bcorrect banswers✔✔More bthan bone, bmore bthan bthree
Which bof bthe bfollowing bsituations bwould bNOT bnormally brequire ban bappraisal? b-
bcorrect banswers✔✔title binsurance
The bdocument btransmitted bto bthe bclient bupon bcompletion bof ban bappraisal
bassignment bis bthe b- bcorrect banswers✔✔appraisal breport
Under bthe b2008 bcriteria, ban bapplicant bfor ba bCertified bGeneral blicense bmust bhold
ba(n) b___________ bdegree bor b_____ bsemester bhours bin bcertain bselected bcollege
blevel bcourses. b- bcorrect banswers✔✔Bachelors b,30
To bapply bfor ban bAppraiser bTrainee blicense, ban bapplicant bmust bhave b_____ bhours
bof bqualifying beducation bcourses band b______ bcreditable bhours bof bexperience. b-
bcorrect banswers✔✔75,0
The bfour bcomponents bof bthe bAppraiser bQualification bCriteria binclude bContinuing
bEducation, bExamination, b____________, band b______________. b- bcorrect
banswers✔✔Experience band bQualifying bEducation
The b_____ bis bcharged bwith bestablishing bthe bqualifications bthat ball bthe bstates bmust
badopt bin blicensing, bcertification band bre-certification bof bappraisers. b- bcorrect
banswers✔✔AQB
The bnumber bof brequired bclassroom bhours bfor bLicensed bResidential bAppraisers
bunder bthe b2008 bcriteria bis b____ bhours. b- bcorrect banswers✔✔150
True bor bFalse? bThe bBoard bof bTrustees bacts bas bthe bexecutive bboard bfor bThe
bAppraisal bFoundation. b- bcorrect banswers✔✔True
In b1987, beight bU.S. bappraisal borganizations bformed b- bcorrect banswers✔✔The
bAppraisal bFoundation
The btransfer bof bmoney bfrom blow binterest-bearing baccounts bto bhigher binterest-
bearing baccounts bis breferred bto bas b- bcorrect banswers✔✔disintermeditation
What bevent bpreceded bthe bGreat bDepression? b- bcorrect banswers✔✔Stock bMarket
bCrash bof b1929
True bor bFalse? bThe bAppraisal bSubcommittee's bmission bis bto bensure bthat breal
bestate bappraisers bwho bperform bappraisals bin bfederally-related btransactions bare
bsufficiently btrained band btested bto bassure bcompetency band bindependent bjudgment.
b- bcorrect banswers✔✔political bparty baffiliation
Questions
True bor bFalse? bWhen bdeveloping ban bopinion bof bsite bvalue bof ban bimproved
bproperty, ban bappraiser bneeds bto bconsider bthe bhighest band bbest buse bof bthe
bproperty bas bthough bvacant. b- bcorrect banswers✔✔TRUE
When bdeveloping ban bopinion bof bhighest band bbest buse, bwhat bis bthe bfinal bcriteria
bthat bis bapplied? b- bcorrect banswers✔✔maximally bproductive
A blot bowner bconstructs ba bnew b4,000 bsquare bfoot bhome bin ba bneighborhood bof
bmostly b800 bto b1,200 bsquare bfoot bhomes. bThe bvalue bof bthe bnew b4,000 bsquare
bfoot bhome bis bdiminished bby bthe bsmaller bhomes bsurrounding bit. bThis bis ban
bexample bof bwhich bvaluation bprinciple? b- bcorrect banswers✔✔regression
Unfortunately, bwith breal bestate, bthe b______ bside bof bthe bequation bis brelatively bfixed
band bslow bto bchange bwhereas bthe b______ bside bof bthe bequation bcan bchange
bquickly. b- bcorrect banswers✔✔supply, bdemand
The bresult bof bthe bcause band beffect brelationship bamong bthe bforces bthat binfluence
breal bproperty bvalue" bis bthe bdefinition bof bthe bprinciple bof b- bcorrect
banswers✔✔change
In bthe bagents bof bproduction btheory, bthe breturn bon bland bwould bbe b__________
band bthe breturn bon blabor bwould bbe b________. b- bcorrect banswers✔✔rent, bwages
The bperception bthat bvalue bis bcreated bby bthe bexpectation bof bbenefits bto bbe bderived
bin bthe bfuture" bis bthe bdefinition bof bthe bprinciple bof b- bcorrect banswers✔✔anticipation
"The bprinciple bthat breal bproperty bvalue bis bcreated band bsustained bwhen bcontrasting,
bopposing, bor binteracting belements bare bin ba bstate bof bequilibrium" bis bthe bdefinition
bof bthe bprinciple bof b- bcorrect banswers✔✔balance
The bprinciple bthat bstudies bthe brelationships bbetween bparticipants bin bthe
bmarketplace, bsuch bas bbuyers band bsellers bor blandlords band btenants, bis bthe
bprinciple bof b- bcorrect banswers✔✔competition
When bestimating bthe bvalue bof ba bswimming bpool bto ba bresidential bproperty, bthe
bmost bimportant bprinciple bis bthe bprinciple bof b- bcorrect banswers✔✔contribution
,"The bconcept bthat bsuccessive bincrements bof bone bor bmore bagents bof bproduction
badded bto bfixed bamounts bof bthe bother bagents bwill benhance bincome, bin bdollars,
bbenefits, bor bamenities, bat ban bincreasing brate buntil ba bmaximum breturn bis breached.
bThen, bincome bwill bdecrease buntil bthe bincrement bto bvalue bbecomes bincreasingly
bless bthan bthe bvalue bof bthe badded bagent bor bagents" bis bthe bdefinition bof bthe
bprinciple bof b- bcorrect banswers✔✔increasing band bdecreasing breturns
Which bcharacteristic bwould bNOT bbe bassociated bwith ba bgood bappraiser? b- bcorrect
banswers✔✔biased
Which bcollege-level bcourse bwould bprobably bbe bLEAST bhelpful bto ban bappraiser? b-
bcorrect banswers✔✔Biology
True bor bFalse: bAll bappraisals bare bperformed bfor bmortgage blending bpurposes. b-
bcorrect banswers✔✔False
A bcertified bresidential bappraiser bneeds b____ bhours bof bcontinuing beducation bper
byear bto brenew bhis bor bher bcertification? b- bcorrect banswers✔✔14
True bor bFalse: bAn bapplicant bfor bCertified bGeneral bappraiser bmust bpossess bat
bleast ban bassociate's bdegree bfrom ban baccredited bcollege bor buniversity. b- bcorrect
banswers✔✔False
A blicensed bor bcertified bappraiser bmust btake bthe b7-hour bUSPAP bUpdate bcourse b-
bcorrect banswers✔✔every b2 byears
The brequirements bfor bstate blicensed band bcertified bappraisers bhad btheir bgenesis bin
b- bcorrect banswers✔✔FIRREA
True bor bFalse: bThe bend bof bthe bU.S. bhousing bboom bmeant bthat bappraisal bbusiness
bdropped bsignificantly bacross bthe bcountry. b- bcorrect banswers✔✔False
True bor bFalse: bAttorneys boften bengage bappraisers bto bcomplete bassignments bfor
bestates band bdivorces. b- bcorrect banswers✔✔False
An bapplicant bfor bCertified bGeneral bAppraiser bmust bobtain b_______ bexperience
bhours bin bno bfewer bthan b_____ bmonths. b- bcorrect banswers✔✔3,000, b30
True bor bFalse: bSome bstate bagencies bemploy bfull-time bstaff bappraisers. b- bcorrect
banswers✔✔True
If byou bhave bspecific bquestions babout bappraisal bcertification bor blicensure
brequirements bin byour bstate, byou bshould b- bcorrect banswers✔✔contact bthe
bappraiser blicensing band bcertification bagency bin byour bstate
, Under bthe b2008 bcriteria, ban bAppraiser bTrainee bis bpermitted bto bhave b________
bsupervising bappraiser, bbut ba bsupervising bappraiser bmay bnot bsupervise b________
btrainees. b- bcorrect banswers✔✔More bthan bone, bmore bthan bthree
Which bof bthe bfollowing bsituations bwould bNOT bnormally brequire ban bappraisal? b-
bcorrect banswers✔✔title binsurance
The bdocument btransmitted bto bthe bclient bupon bcompletion bof ban bappraisal
bassignment bis bthe b- bcorrect banswers✔✔appraisal breport
Under bthe b2008 bcriteria, ban bapplicant bfor ba bCertified bGeneral blicense bmust bhold
ba(n) b___________ bdegree bor b_____ bsemester bhours bin bcertain bselected bcollege
blevel bcourses. b- bcorrect banswers✔✔Bachelors b,30
To bapply bfor ban bAppraiser bTrainee blicense, ban bapplicant bmust bhave b_____ bhours
bof bqualifying beducation bcourses band b______ bcreditable bhours bof bexperience. b-
bcorrect banswers✔✔75,0
The bfour bcomponents bof bthe bAppraiser bQualification bCriteria binclude bContinuing
bEducation, bExamination, b____________, band b______________. b- bcorrect
banswers✔✔Experience band bQualifying bEducation
The b_____ bis bcharged bwith bestablishing bthe bqualifications bthat ball bthe bstates bmust
badopt bin blicensing, bcertification band bre-certification bof bappraisers. b- bcorrect
banswers✔✔AQB
The bnumber bof brequired bclassroom bhours bfor bLicensed bResidential bAppraisers
bunder bthe b2008 bcriteria bis b____ bhours. b- bcorrect banswers✔✔150
True bor bFalse? bThe bBoard bof bTrustees bacts bas bthe bexecutive bboard bfor bThe
bAppraisal bFoundation. b- bcorrect banswers✔✔True
In b1987, beight bU.S. bappraisal borganizations bformed b- bcorrect banswers✔✔The
bAppraisal bFoundation
The btransfer bof bmoney bfrom blow binterest-bearing baccounts bto bhigher binterest-
bearing baccounts bis breferred bto bas b- bcorrect banswers✔✔disintermeditation
What bevent bpreceded bthe bGreat bDepression? b- bcorrect banswers✔✔Stock bMarket
bCrash bof b1929
True bor bFalse? bThe bAppraisal bSubcommittee's bmission bis bto bensure bthat breal
bestate bappraisers bwho bperform bappraisals bin bfederally-related btransactions bare
bsufficiently btrained band btested bto bassure bcompetency band bindependent bjudgment.
b- bcorrect banswers✔✔political bparty baffiliation
