APPRAISAL SUBJECT 2025
MATTER ELECTIVES
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
A property has four units. 2 are rented for $700, 1 for $725, and 1 for $775. The
market rent for each unit is $750 per month. The indicated GRM is 118. What is
the indicated value for the subject by the income approach?
1) $342,200
2) $345,000
3) $354,000
4) $360,000 - ANSWERS-$354,000
MARKET RENT
QUESTION 2
If the Cost Approach is developed in an appraisal, Fannie Mae requires the
appraiser to provide a summary of support for his/her opinion of __________.
1) site value
2) Depreciation
3) Economic life
4) functional obsolescence - ANSWERS-site value
END OF
PAGE
1
, APPRAISAL SUBJECT 2025
MATTER ELECTIVES
QUESTION 3
The N.A.D.A. system is different from any of the other cost services such as
Marshall & Swift, Boeckh, Dodge, Means, etc. because their derived cost already
includes
1) Depreciation
2) Site
3) Transportation
4) Site improvements - ANSWERS-Depreciation
QUESTION 4
"Income from the operation of a business or the management of property,
customarily stated on an annual basis" is the definition of __________ income.
1) Net
2) Net operating
3) Gross
4) Other - ANSWERS-Gross
END OF
PAGE
2
, APPRAISAL SUBJECT 2025
MATTER ELECTIVES
QUESTION 5
"The sum of all fixed and variable operating expenses and the replacement
allowance cited in the appraiser's operating expense estimate" is the definition of
_____________ expenses.
1) net
2) total operating
3) reserve
4) gross operating - ANSWERS-total operating
QUESTION 6
When completing a Form 216 Operating Income Statement, how should we treat
any income from owner-occupied units?
1) include it
2) include 50%
3) exclude it
4) ask the owner whether or not to include - ANSWERS-exclude it
END OF
PAGE
3
, APPRAISAL SUBJECT 2025
MATTER ELECTIVES
QUESTION 7
When a 2-unit property is being appraised, when does FHA require the income
approach to be developed?
1) Always
2) When the market contains sufficient data for the approach to be relevant
3) If the property is rented at 100% occupancy at market rent
4) Never - ANSWERS-When the market contains sufficient data for the approach
to be relevant
QUESTION 8
Studies have shown that we retain more of what we ______ than with any other
method.
1) read
2) hear
3) say
4) Watch on TV - ANSWERS-say
END OF
PAGE
4
MATTER ELECTIVES
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
A property has four units. 2 are rented for $700, 1 for $725, and 1 for $775. The
market rent for each unit is $750 per month. The indicated GRM is 118. What is
the indicated value for the subject by the income approach?
1) $342,200
2) $345,000
3) $354,000
4) $360,000 - ANSWERS-$354,000
MARKET RENT
QUESTION 2
If the Cost Approach is developed in an appraisal, Fannie Mae requires the
appraiser to provide a summary of support for his/her opinion of __________.
1) site value
2) Depreciation
3) Economic life
4) functional obsolescence - ANSWERS-site value
END OF
PAGE
1
, APPRAISAL SUBJECT 2025
MATTER ELECTIVES
QUESTION 3
The N.A.D.A. system is different from any of the other cost services such as
Marshall & Swift, Boeckh, Dodge, Means, etc. because their derived cost already
includes
1) Depreciation
2) Site
3) Transportation
4) Site improvements - ANSWERS-Depreciation
QUESTION 4
"Income from the operation of a business or the management of property,
customarily stated on an annual basis" is the definition of __________ income.
1) Net
2) Net operating
3) Gross
4) Other - ANSWERS-Gross
END OF
PAGE
2
, APPRAISAL SUBJECT 2025
MATTER ELECTIVES
QUESTION 5
"The sum of all fixed and variable operating expenses and the replacement
allowance cited in the appraiser's operating expense estimate" is the definition of
_____________ expenses.
1) net
2) total operating
3) reserve
4) gross operating - ANSWERS-total operating
QUESTION 6
When completing a Form 216 Operating Income Statement, how should we treat
any income from owner-occupied units?
1) include it
2) include 50%
3) exclude it
4) ask the owner whether or not to include - ANSWERS-exclude it
END OF
PAGE
3
, APPRAISAL SUBJECT 2025
MATTER ELECTIVES
QUESTION 7
When a 2-unit property is being appraised, when does FHA require the income
approach to be developed?
1) Always
2) When the market contains sufficient data for the approach to be relevant
3) If the property is rented at 100% occupancy at market rent
4) Never - ANSWERS-When the market contains sufficient data for the approach
to be relevant
QUESTION 8
Studies have shown that we retain more of what we ______ than with any other
method.
1) read
2) hear
3) say
4) Watch on TV - ANSWERS-say
END OF
PAGE
4
