Basic Appraisal Principles - Mckissock
Learning UPDATED ACTUAL Exam
Questions and CORRECT Answers
A client has requested that an appraiser value a property that is improved with an old dilapidated
single family home, and asks the appraiser not to mention the existence of the home in the
appraisal report. Which statement is TRUE regarding this situation? - CORRECT
ANSWER - It would be misleading if the appraiser did not disclose the existence of this
structure in the report.
"The price expected for a whole property, e.g., a house, or a part of a property, e.g., a plumbing
fixture, that is removed from the premises usually for use elsewhere" is the definition of
____________ value. - CORRECT ANSWER - Salvage
Reporting requirements for real property appraisers are set forth in STANDARD ___ of the
Uniform Standards of Professional Appraisal Practice. - CORRECT ANSWER -2
The appraisal standards and qualification criteria that are published by The Appraisal Foundation
achieve legal authority by adoption, citation or implementation by - CORRECT
ANSWER - Government agencies with the power to regulate or administrate
The ________ is responsible for establishing criteria for individuals to become real property
appraisers - CORRECT ANSWER - Appraiser Qualification Board
The principle of supply and demand states that the price of a commodity, good, or service varies
__________, but not necessarily _____________, with demand. - CORRECT ANSWER -
directly, proportionately
A lot contains .56 acres. It sells for $35,000. How much did it sell for per square foot? -
CORRECT ANSWER - $1.43
, 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
When estimating the value of a fireplace in a single-family home, the most important principle is
the principle of - CORRECT ANSWER - Contribution
"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
You want to buy a house for $243,500. You can get a loan for 90% of value. You will also have
to pay 2.75 points on the loan. How much will you have to deliver to closing to cover both the
down payment and the loan points? - CORRECT ANSWER - $30,376.63
The federal financial institutions regulatory agencies directly involved in fair lending include all
of the following EXCEPT - CORRECT ANSWER - ASB
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
Which of the following types of investments has historically generated the highest return on
investment? - CORRECT ANSWER - Real Estate
A market analysis examines ____________ , where a marketability analysis examines
______________. - CORRECT ANSWER - a type of property, a specific property
The first appraiser organizations were formed in the - CORRECT ANSWER - 1930s
Today, most appraisal data is sent to the client by - CORRECT ANSWER - Transmitting
the appraisal report through an EDI
Learning UPDATED ACTUAL Exam
Questions and CORRECT Answers
A client has requested that an appraiser value a property that is improved with an old dilapidated
single family home, and asks the appraiser not to mention the existence of the home in the
appraisal report. Which statement is TRUE regarding this situation? - CORRECT
ANSWER - It would be misleading if the appraiser did not disclose the existence of this
structure in the report.
"The price expected for a whole property, e.g., a house, or a part of a property, e.g., a plumbing
fixture, that is removed from the premises usually for use elsewhere" is the definition of
____________ value. - CORRECT ANSWER - Salvage
Reporting requirements for real property appraisers are set forth in STANDARD ___ of the
Uniform Standards of Professional Appraisal Practice. - CORRECT ANSWER -2
The appraisal standards and qualification criteria that are published by The Appraisal Foundation
achieve legal authority by adoption, citation or implementation by - CORRECT
ANSWER - Government agencies with the power to regulate or administrate
The ________ is responsible for establishing criteria for individuals to become real property
appraisers - CORRECT ANSWER - Appraiser Qualification Board
The principle of supply and demand states that the price of a commodity, good, or service varies
__________, but not necessarily _____________, with demand. - CORRECT ANSWER -
directly, proportionately
A lot contains .56 acres. It sells for $35,000. How much did it sell for per square foot? -
CORRECT ANSWER - $1.43
, 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
When estimating the value of a fireplace in a single-family home, the most important principle is
the principle of - CORRECT ANSWER - Contribution
"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
You want to buy a house for $243,500. You can get a loan for 90% of value. You will also have
to pay 2.75 points on the loan. How much will you have to deliver to closing to cover both the
down payment and the loan points? - CORRECT ANSWER - $30,376.63
The federal financial institutions regulatory agencies directly involved in fair lending include all
of the following EXCEPT - CORRECT ANSWER - ASB
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
Which of the following types of investments has historically generated the highest return on
investment? - CORRECT ANSWER - Real Estate
A market analysis examines ____________ , where a marketability analysis examines
______________. - CORRECT ANSWER - a type of property, a specific property
The first appraiser organizations were formed in the - CORRECT ANSWER - 1930s
Today, most appraisal data is sent to the client by - CORRECT ANSWER - Transmitting
the appraisal report through an EDI
