BASIC APPRAISAL PRINCIPLES
FINAL EXAM 400+ QUESTIONS
WITH VERIFIED DETAILED
ANSWERS ALREADY GRADED
A+
"You purchased a house for $120,000, three years ago. Property values increased 3% the first year, 5%,
the second year, and 7% the third year. How much is your house worth now? - CORRECT ANSWER=>
$138,865"
"Mary Jones has a property with no road frontage. She has an access right of way across the property of
her neighbor Bob Smith for ingress, egress, and regress. Who has the dominant tenement in this
situation? - CORRECT ANSWER=> Mary Jones"
"Which statement about price, cost, and value is TRUE? - CORRECT ANSWER=> Price and value can be
the same in some situations."
"The median price of homes sold in your county nine months ago was $217,400. Prices have been
increasing at the rate of 8% per year. What is the median price of homes today? - CORRECT ANSWER=>
$230,444"
"As part of the overall requirement for continuing education, certified and licensed appraisers must
complete the 7-Hour National USPAP Update Course or its equivalent ________ calendar year(s). -
CORRECT ANSWER=> every 2"
"Electronic Data Interchange for transmitting appraisal reports became popular in the - CORRECT
ANSWER=> late 1990s"
"When appraising an income producing property, you have the following GRMs indicated from
comparable sales (122, 159, 132, 126, 122, 173, 152, 126). What is the median of the GRMs? - CORRECT
ANSWER=> 129"
""A development right that cannot be used by the landowner, or that the owner chooses not to use, but
can be sold to landowners in another location" are called _____________ rights. - CORRECT ANSWER=>
transferable development"
1|Page
,"The Conduct Section of the ETHICS RULE states, in part, that an appraiser must perform assignments
with - CORRECT ANSWER=> Impartiality, objectivity, and independence"
"The four components of the Appraiser Qualification Criteria are: - CORRECT ANSWER=> qualifying
education, examination, experience, continuing education"
"Which of the below is a requirement of a valid real estate contract? - CORRECT ANSWER=> all of the
above"
"USPAP defines _________ as the amount asked, offered, or paid for a property. - CORRECT ANSWER=>
price"
""The act of transferring an interest in property or some right (such as contract benefits) to another" is
the definition of - CORRECT ANSWER=> assignment"
""The study of the cost-benefit relationship of an economic endeavor" is the definition of - CORRECT
ANSWER=> feasibility analysis"
"Your property, which consists of a house on a lot, is valued at $186,000. You want to insure it for 80% of
value. Insurance will cost $6.00 per thousand per year. How much will your insurance cost per month? -
CORRECT ANSWER=> $74.40"
"A client asks an appraiser to omit the client's identity from the appraisal report. What can the appraiser
do? - CORRECT ANSWER=> omit the client's identity from the report but identify the client in the
workfile"
"The primary purpose of USPAP is to protect - CORRECT ANSWER=> public trust"
"Which is the fullest and most complete type of estate? - CORRECT ANSWER=> fee simple"
""A mortgage in which the interest rate may move up or down, following a specified schedule or in
accordance with the movements of a standard or index to which it is tied" is the definition of a(n)
______________ mortgage. - CORRECT ANSWER=> adjustable rate"
"Transportation would be an example of a(n) __________ force affecting property values. - CORRECT
ANSWER=> governmental"
""In appraisal, the concept that a higher-priced property will be worth less in a lower-priced
neighborhood than it would in a neighborhood of comparable properties" is the definition of the
principle of - CORRECT ANSWER=> regression"
2|Page
,""A right or interest in property" is a(n) - CORRECT ANSWER=> estate"
""A value that cannot be imputed to any part of the physical property, e.g., the excess value attributable
to a favorable lease or mortgage, the value attributable to goodwill" is the definition of ____________
value. - CORRECT ANSWER=> intangible"
"What is the median of these numbers: 19, 11, 64, 36, 81, 22, 35, 95? - CORRECT ANSWER=> 35.5"
"The general rule of contracting with minors is that a contract with a minor is - CORRECT ANSWER=>
voidable at the minor's option"
""The geographic region from which a majority of demand comes and which the majority of the
competition is located" is the definition of - CORRECT ANSWER=> market area"
"When estimating the value of a fireplace in a single-family home, the most important principle is the
principle of - CORRECT ANSWER=> contribution"
"Normally the first step in highest and best use analysis is to research the uses that are - CORRECT
ANSWER=> legally permissible"
"The _______ maintains a national registry of state certified and licensed appraisers who are eligible to
perform appraisals in federally related transactions. - CORRECT ANSWER=> Appraisal Subcommittee"
"A lot measures 178 feet by 464 feet. It sold for $80,000. What did it sell for per acre? HINT: Round the
acreage amount to two decimal places. - CORRECT ANSWER=> $42,105"
"You apply for a mortgage and the lender will allow you to spend up to 30% of your annual income for
housing costs. These housing costs will include your mortgage, property taxes, and insurance. Your
income is $1,635 every two weeks. If you apply for the loan, how much can your maximum monthly
payment be? - CORRECT ANSWER=> $1,062.75"
"You bought a property for $650,000, 2 years ago. Values increased in that area by 8% the first year and
6% the second year. How much is your property worth today? - CORRECT ANSWER=> $744,120"
""The sum of values for a variable in a sample or population divided by the number of items in the
sample or population" is the definition of - CORRECT ANSWER=> mean"
"Which of the following is a characteristic of an effective market? - CORRECT ANSWER=> all of the
above"
"Who is responsible for appointing members to the ASB and AQB? - CORRECT ANSWER=> the Board of
Trustees"
3|Page
, "The federal financial institutions regulatory agencies directly involved in fair lending include all of the
following EXCEPT - CORRECT ANSWER=> Freddie Mac"
""The right held by the lessee to use and occupy real estate for a stated term and under the conditions
specified in the lease" is the definition of - CORRECT ANSWER=> leasehold estate"
"Modern definitions of the word "appraisal" have replaced the word _______ with ________. - CORRECT
ANSWER=> estimate, opinion"
"A rectangular property measures 320 feet by 574.45 feet, and it sold for $263,750. How much did it sell
for per acre? - CORRECT ANSWER=> $62,500"
"Under the current qualifying education criteria, there are college-level course requirements for
__________ classifications. - CORRECT ANSWER=> both Certified Residential and Certified General"
"The strongest form of deed is the __________ deed. - CORRECT ANSWER=> warranty"
""The rate at which vacant space in a property or a group of properties for sale or lease has been or is
expected to be successfully sold or leased over a specified period of time" is the definition of a(n)
__________ rate. - CORRECT ANSWER=> absorption"
"An appraiser pays a fee for the procurement of an assignment. Where in the appraisal report does this
payment have to be disclosed? - CORRECT ANSWER=> in the certification and transmittal letter where
conclusions are stated"
"All of the following would typically be considered to be personal property EXCEPT - CORRECT
ANSWER=> wall to wall carpeting"
"The Management Section of the ETHICS RULE states, in part, "An appraiser must __________ that he or
she paid a fee or commission, or gave a thing of value in connection with the procurement of an
assignment." - CORRECT ANSWER=> disclose"
""A gathering of people for the buying and selling of things" is the definition of - CORRECT ANSWER=>
market"
"Which of the following would be private restrictions on property rights? - CORRECT ANSWER=> deed
restriction and mechanic's lien"
"The ______ publishes "other communications" in the form of Advisory Opinions and USPAP FAQs. -
CORRECT ANSWER=> ASB"
4|Page
FINAL EXAM 400+ QUESTIONS
WITH VERIFIED DETAILED
ANSWERS ALREADY GRADED
A+
"You purchased a house for $120,000, three years ago. Property values increased 3% the first year, 5%,
the second year, and 7% the third year. How much is your house worth now? - CORRECT ANSWER=>
$138,865"
"Mary Jones has a property with no road frontage. She has an access right of way across the property of
her neighbor Bob Smith for ingress, egress, and regress. Who has the dominant tenement in this
situation? - CORRECT ANSWER=> Mary Jones"
"Which statement about price, cost, and value is TRUE? - CORRECT ANSWER=> Price and value can be
the same in some situations."
"The median price of homes sold in your county nine months ago was $217,400. Prices have been
increasing at the rate of 8% per year. What is the median price of homes today? - CORRECT ANSWER=>
$230,444"
"As part of the overall requirement for continuing education, certified and licensed appraisers must
complete the 7-Hour National USPAP Update Course or its equivalent ________ calendar year(s). -
CORRECT ANSWER=> every 2"
"Electronic Data Interchange for transmitting appraisal reports became popular in the - CORRECT
ANSWER=> late 1990s"
"When appraising an income producing property, you have the following GRMs indicated from
comparable sales (122, 159, 132, 126, 122, 173, 152, 126). What is the median of the GRMs? - CORRECT
ANSWER=> 129"
""A development right that cannot be used by the landowner, or that the owner chooses not to use, but
can be sold to landowners in another location" are called _____________ rights. - CORRECT ANSWER=>
transferable development"
1|Page
,"The Conduct Section of the ETHICS RULE states, in part, that an appraiser must perform assignments
with - CORRECT ANSWER=> Impartiality, objectivity, and independence"
"The four components of the Appraiser Qualification Criteria are: - CORRECT ANSWER=> qualifying
education, examination, experience, continuing education"
"Which of the below is a requirement of a valid real estate contract? - CORRECT ANSWER=> all of the
above"
"USPAP defines _________ as the amount asked, offered, or paid for a property. - CORRECT ANSWER=>
price"
""The act of transferring an interest in property or some right (such as contract benefits) to another" is
the definition of - CORRECT ANSWER=> assignment"
""The study of the cost-benefit relationship of an economic endeavor" is the definition of - CORRECT
ANSWER=> feasibility analysis"
"Your property, which consists of a house on a lot, is valued at $186,000. You want to insure it for 80% of
value. Insurance will cost $6.00 per thousand per year. How much will your insurance cost per month? -
CORRECT ANSWER=> $74.40"
"A client asks an appraiser to omit the client's identity from the appraisal report. What can the appraiser
do? - CORRECT ANSWER=> omit the client's identity from the report but identify the client in the
workfile"
"The primary purpose of USPAP is to protect - CORRECT ANSWER=> public trust"
"Which is the fullest and most complete type of estate? - CORRECT ANSWER=> fee simple"
""A mortgage in which the interest rate may move up or down, following a specified schedule or in
accordance with the movements of a standard or index to which it is tied" is the definition of a(n)
______________ mortgage. - CORRECT ANSWER=> adjustable rate"
"Transportation would be an example of a(n) __________ force affecting property values. - CORRECT
ANSWER=> governmental"
""In appraisal, the concept that a higher-priced property will be worth less in a lower-priced
neighborhood than it would in a neighborhood of comparable properties" is the definition of the
principle of - CORRECT ANSWER=> regression"
2|Page
,""A right or interest in property" is a(n) - CORRECT ANSWER=> estate"
""A value that cannot be imputed to any part of the physical property, e.g., the excess value attributable
to a favorable lease or mortgage, the value attributable to goodwill" is the definition of ____________
value. - CORRECT ANSWER=> intangible"
"What is the median of these numbers: 19, 11, 64, 36, 81, 22, 35, 95? - CORRECT ANSWER=> 35.5"
"The general rule of contracting with minors is that a contract with a minor is - CORRECT ANSWER=>
voidable at the minor's option"
""The geographic region from which a majority of demand comes and which the majority of the
competition is located" is the definition of - CORRECT ANSWER=> market area"
"When estimating the value of a fireplace in a single-family home, the most important principle is the
principle of - CORRECT ANSWER=> contribution"
"Normally the first step in highest and best use analysis is to research the uses that are - CORRECT
ANSWER=> legally permissible"
"The _______ maintains a national registry of state certified and licensed appraisers who are eligible to
perform appraisals in federally related transactions. - CORRECT ANSWER=> Appraisal Subcommittee"
"A lot measures 178 feet by 464 feet. It sold for $80,000. What did it sell for per acre? HINT: Round the
acreage amount to two decimal places. - CORRECT ANSWER=> $42,105"
"You apply for a mortgage and the lender will allow you to spend up to 30% of your annual income for
housing costs. These housing costs will include your mortgage, property taxes, and insurance. Your
income is $1,635 every two weeks. If you apply for the loan, how much can your maximum monthly
payment be? - CORRECT ANSWER=> $1,062.75"
"You bought a property for $650,000, 2 years ago. Values increased in that area by 8% the first year and
6% the second year. How much is your property worth today? - CORRECT ANSWER=> $744,120"
""The sum of values for a variable in a sample or population divided by the number of items in the
sample or population" is the definition of - CORRECT ANSWER=> mean"
"Which of the following is a characteristic of an effective market? - CORRECT ANSWER=> all of the
above"
"Who is responsible for appointing members to the ASB and AQB? - CORRECT ANSWER=> the Board of
Trustees"
3|Page
, "The federal financial institutions regulatory agencies directly involved in fair lending include all of the
following EXCEPT - CORRECT ANSWER=> Freddie Mac"
""The right held by the lessee to use and occupy real estate for a stated term and under the conditions
specified in the lease" is the definition of - CORRECT ANSWER=> leasehold estate"
"Modern definitions of the word "appraisal" have replaced the word _______ with ________. - CORRECT
ANSWER=> estimate, opinion"
"A rectangular property measures 320 feet by 574.45 feet, and it sold for $263,750. How much did it sell
for per acre? - CORRECT ANSWER=> $62,500"
"Under the current qualifying education criteria, there are college-level course requirements for
__________ classifications. - CORRECT ANSWER=> both Certified Residential and Certified General"
"The strongest form of deed is the __________ deed. - CORRECT ANSWER=> warranty"
""The rate at which vacant space in a property or a group of properties for sale or lease has been or is
expected to be successfully sold or leased over a specified period of time" is the definition of a(n)
__________ rate. - CORRECT ANSWER=> absorption"
"An appraiser pays a fee for the procurement of an assignment. Where in the appraisal report does this
payment have to be disclosed? - CORRECT ANSWER=> in the certification and transmittal letter where
conclusions are stated"
"All of the following would typically be considered to be personal property EXCEPT - CORRECT
ANSWER=> wall to wall carpeting"
"The Management Section of the ETHICS RULE states, in part, "An appraiser must __________ that he or
she paid a fee or commission, or gave a thing of value in connection with the procurement of an
assignment." - CORRECT ANSWER=> disclose"
""A gathering of people for the buying and selling of things" is the definition of - CORRECT ANSWER=>
market"
"Which of the following would be private restrictions on property rights? - CORRECT ANSWER=> deed
restriction and mechanic's lien"
"The ______ publishes "other communications" in the form of Advisory Opinions and USPAP FAQs. -
CORRECT ANSWER=> ASB"
4|Page
