Real Estate Appraisal Final Exam|100
Verified Questions and Correct
Solutions.
The four stages of the neighborhood life cycle are growth, equilibrium, decline, and
what? - AnswerRejuvenation
Which of the following will an appraiser use to determine potential gross income for an
income property appraisal? - AnswerMarket rent
The cost approach to finding an appraised value measures _______. - AnswerThe
cost to acquire land and construct a reproduction
Which of these is an example of a rectangular survey system description? - AnswerS
½ SE ¼ NW ¼ Section 2, Township Clarkson
Which of the following best describes the skill set required to be a licensed real estate
appraiser? - AnswerResearch, analysis, and reporting
Who typically performs a CMA or BPO? - AnswerReal estate licensee
Which type of REIT receives most of its revenue from rental of their properties? -
AnswerEquity REIT
Why isn't the cost approach usually used to determine the value of older properties? -
AnswerIt's difficult to accurately estimate depreciation with an older property.
When an appraiser relies on comparable properties to estimate the adjusted market
price of a property, the appraiser is using the _______ approach. - AnswerSales
comparison
The four measures of time that appraisers use when estimating the depreciation cost for
a structure are economic life, physical life, ______, and remaining economic life. -
AnswerEffective age
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? -
AnswerThe appraiser selects the adjusted sales price of the property most like the
subject to use as the indicated value.
, What value principle assumes that if an identical property were sold recently, its sales
price should be a good indicator of the value of the subject property? -
AnswerSubstitution
In the formula NOI ÷ V = R, what does R represent? - AnswerCapitalization rate
What's the primary purpose of the Universal Appraisal Dataset? - AnswerTo improve
the quality and consistency of appraisal data for loans delivered to Fannie Mae and
Freddie Mac
To determine the total reproduction cost of a subject building using the unit-in-place
method, an appraiser multiplies the cost per unit of measure of each component part of
the subject property's structure by the ______ and then adds them together. -
AnswerNumber of units of that component part in the subject building
What's the difference between direct capitalization and yield capitalization when
appraising income property? - AnswerDirect capitalization uses a time span of one
year into the future, while yield capitalization capitalizes income for the entire holding
period of the property.
What happens when a married couple who owns a property as tenants by the entirety
divorce? - AnswerTheir ownership reduces to tenancy in common or joint tenancy.
The question, "What's the purpose of this appraisal?" can be answered by which step of
the appraisal process? - AnswerState the problem.
In the income capitalization approach to appraisal, NOI is found by ______. -
AnswerSubtracting total operating expenses from effective gross income
Diane is evaluating the value of her latest listing. She notes that there aren't a lot of
properties on the market right now. Which value-influencing DUST factor is she
considering? - AnswerScarcity
If Mega Corporation owns real property, chances are it owns it in ______. -
AnswerSeveralty
Which property type presents the most potential drawbacks to using the cost approach
to determine value? - AnswerResidential
How does an appraiser begin an appraisal? - AnswerBy stating the problem
An appraiser is performing an income-based appraisal on a commercial property. Which
of these items would be shown as a fixed expense on the appraiser's reconstructed
operating statement? - AnswerReal estate tax
Verified Questions and Correct
Solutions.
The four stages of the neighborhood life cycle are growth, equilibrium, decline, and
what? - AnswerRejuvenation
Which of the following will an appraiser use to determine potential gross income for an
income property appraisal? - AnswerMarket rent
The cost approach to finding an appraised value measures _______. - AnswerThe
cost to acquire land and construct a reproduction
Which of these is an example of a rectangular survey system description? - AnswerS
½ SE ¼ NW ¼ Section 2, Township Clarkson
Which of the following best describes the skill set required to be a licensed real estate
appraiser? - AnswerResearch, analysis, and reporting
Who typically performs a CMA or BPO? - AnswerReal estate licensee
Which type of REIT receives most of its revenue from rental of their properties? -
AnswerEquity REIT
Why isn't the cost approach usually used to determine the value of older properties? -
AnswerIt's difficult to accurately estimate depreciation with an older property.
When an appraiser relies on comparable properties to estimate the adjusted market
price of a property, the appraiser is using the _______ approach. - AnswerSales
comparison
The four measures of time that appraisers use when estimating the depreciation cost for
a structure are economic life, physical life, ______, and remaining economic life. -
AnswerEffective age
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? -
AnswerThe appraiser selects the adjusted sales price of the property most like the
subject to use as the indicated value.
, What value principle assumes that if an identical property were sold recently, its sales
price should be a good indicator of the value of the subject property? -
AnswerSubstitution
In the formula NOI ÷ V = R, what does R represent? - AnswerCapitalization rate
What's the primary purpose of the Universal Appraisal Dataset? - AnswerTo improve
the quality and consistency of appraisal data for loans delivered to Fannie Mae and
Freddie Mac
To determine the total reproduction cost of a subject building using the unit-in-place
method, an appraiser multiplies the cost per unit of measure of each component part of
the subject property's structure by the ______ and then adds them together. -
AnswerNumber of units of that component part in the subject building
What's the difference between direct capitalization and yield capitalization when
appraising income property? - AnswerDirect capitalization uses a time span of one
year into the future, while yield capitalization capitalizes income for the entire holding
period of the property.
What happens when a married couple who owns a property as tenants by the entirety
divorce? - AnswerTheir ownership reduces to tenancy in common or joint tenancy.
The question, "What's the purpose of this appraisal?" can be answered by which step of
the appraisal process? - AnswerState the problem.
In the income capitalization approach to appraisal, NOI is found by ______. -
AnswerSubtracting total operating expenses from effective gross income
Diane is evaluating the value of her latest listing. She notes that there aren't a lot of
properties on the market right now. Which value-influencing DUST factor is she
considering? - AnswerScarcity
If Mega Corporation owns real property, chances are it owns it in ______. -
AnswerSeveralty
Which property type presents the most potential drawbacks to using the cost approach
to determine value? - AnswerResidential
How does an appraiser begin an appraisal? - AnswerBy stating the problem
An appraiser is performing an income-based appraisal on a commercial property. Which
of these items would be shown as a fixed expense on the appraiser's reconstructed
operating statement? - AnswerReal estate tax
