Texas SAE Real Estate Appraisal Exam
review questions with correct answers
Which |value-influencing |DUST |factor |addresses |the |ease |with |which |the |property |can |be |
conveyed |to |another? |- |CORRECT |ANSWER✔✔-Transferability
Which |of |the |following |formulas |is |used |with |the |index |method |to |find |the |reproduction |cost?
|- |CORRECT |ANSWER✔✔-Present |index |÷ |Index |at |time |of |construction |x |Original |cost |= |
Present |cost
To |arrive |at |the |present |cost, |the |appraiser |applies |a |factor |that |represents |the |costs |of |
construction |over |time |up |to |the |appraisal |date |(present |index |÷ |index |at |time |of |construction)
|multiplied |by |the |subject |building's |original |cost.
When |possible, |comparable |sales |from |______ |should |be |used. |- |CORRECT |ANSWER✔✔-The |
same |neighborhood
Ownership |in |a |planned |unit |development |consists |of |______. |- |CORRECT |ANSWER✔✔-A |
parcel |of |land, |the |structures |on |it, |and |shared |common |areas
In |what |way |is |taxation |an |inherent |burden |on |private |landownership? |- |CORRECT |
ANSWER✔✔-Unpaid |taxes |become |a |lien |against |the |property.
Bianca |wants |to |buy |a |cooperative, |but |she's |unsure |that |she |can |afford |it. |With |a |
cooperative, |her |share |of |mortgage |interest |and |real |estate |taxes |will |be |______. |- |CORRECT |
ANSWER✔✔-Deductible |on |her |personal |income |tax |returns
As |the |resident |in |a |cooperative, |her |share |of |mortgage |interest |and |real |estate |taxes |is |
deductible |on |personal |income |tax |returns.
The |Appraiser |Independence |Requirements |protect |which |party |or |parties? |- |CORRECT |
ANSWER✔✔-The |appraiser, |the |lender, |and |the |consumer
,Using |the |gross |income |multiplier |(GIM) |valuation |method, |a |property's |sales |price |is |divided |
by |its |gross |income. |If |a |property |has |a |sales |price |of |$100,000 |and |gross |income |of |$10,000, |
what |is |its |GIM? |- |CORRECT |ANSWER✔✔-10X |(100,000/10,000)
Which |professional |is |hired |by |the |buyer |and |lender |to |give |an |opinion |of |value |of |the |
property? |- |CORRECT |ANSWER✔✔-Appraiser
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? |- |CORRECT |
ANSWER✔✔-The |appraiser |selects |the |adjusted |sales |price |of |the |property |most |like |the |
subject |to |use |as |the |indicated |value.
What |is |the |definition |of |an |appraisal? |- |CORRECT |ANSWER✔✔-An |estimate |of |value |for |a |
specific |purpose, |party, |and |property |as |of |a |specific |date
Which |of |the |following |properties |requires |the |appraiser |to |include |information |about |the |
monthly |fees |charged |by |the |property |management, |the |location |of |the |subject |property |
within |a |community, |and |the |areas |considered |private |or |public? |- |CORRECT |ANSWER✔✔-
Condo |Unit
If |Mega |Corporation |owns |real |property, |chances |are |it |owns |it |in |______. |- |CORRECT |
ANSWER✔✔-Severalty |Ownership
Corporations |own |property |owned |in |severalty, |like |individuals |do.
James |creates |a |trust |to |hold |a |piece |of |real |estate |he |owns. |He |directs |a |corporate |fiduciary |
to |hold |title |to |the |real |estate |and |provides |instructions |for |the |management, |control, |and |
disposition |of |the |real |estate |upon |his |death. |Given |that |the |trust |only |holds |real |estate, |
James |likely |set |up |a(n) |______ |trust. |- |CORRECT |ANSWER✔✔-Land |Trust
A |land |trust |is |similar |to |other |trusts |except |that |it's |formed |specifically |to |hold |real |estate.
,The |earth's |surface, |extending |downward |to |the |center |of |the |earth |and |upward |to |infinity, |
including |permanently-attached |natural |objects, |is |called |______. |- |CORRECT |ANSWER✔✔-This
|is |a |definition |of |land.
Which |of |these |is |a |written |description |of |a |blueprint? |- |CORRECT |ANSWER✔✔-Building |
specifications |
explain |the |blueprint |and |any |features |that |may |not |be |visible |on |that |building |plan.
What |method |of |land |valuation |converts |the |amount |of |yearly |income |a |site |will |produce |into |
a |value |using |a |capitalization |rate? |- |CORRECT |ANSWER✔✔-Ground |Rent |Capitalization |
Method |(GRM)
As |part |of |completing |an |appraisal |using |the |cost |approach |method, |what |must |appraisers |do?
|- |CORRECT |ANSWER✔✔-Complete |the |cost |approach |section |of |the |URAR |form
Which |of |the |following |analyzes |net |operating |income |(NOI) |for |a |single |year, |and |is |used |
when |the |property's |income |isn't |expected |to |vary |much |over |time?
The |_method |converts |a |single |year's |expected |income |(or |an |annual |average) |into |a |market |
value. |This |is |the |expected |return |on |investment |the |property |is |capable |of |producing |in |a |
single |year: |the |first |year |of |ownership. |- |CORRECT |ANSWER✔✔-Direct |Capitalization
Real |estate, |plus |all |of |the |interests, |benefits, |and |rights |included |in |ownership, |is |also |known |
as |______. |- |CORRECT |ANSWER✔✔-Real |Property
The |US |Census |Bureau |is |a |good |source |of |what |type |of |data |needed |by |appraisers? |- |
CORRECT |ANSWER✔✔-General |Data
What's |the |term |for |certified |energy-efficient |homes |that |have |met |specific |qualifications? |- |
CORRECT |ANSWER✔✔-ENERGY |STAR®-qualified |home
, The |______ |system |keeps |air |fresh |by |recycling |air |and |removing |odors |and |pollutants. |- |
CORRECT |ANSWER✔✔-Ventilation
Which |part |of |the |cost |approach |equation |is |considered |the |most |difficult |part |to |estimate |
accurately?
__is |considered |the |most |difficult |part |of |the |cost |approach |equation |to |estimate |accurately, |
partially |because |it |can |vary |considerably |based |on |specific |market |conditions |as |of |the |
appraisal |date. |In |addition, |a |buyer's |measure |of |depreciation |can |also |vary |quite |a |bit, |
depending |on |the |price |range |of |homes |in |the |local |area. |- |CORRECT |ANSWER✔✔-Accrued |
Depreciation
When |discounted |cash |flow |analysis |is |used, |what's |discounted?
_is |discounted |to |a |present |value |when |this |method |is |used. |- |CORRECT |ANSWER✔✔-
Anticipated |future |income
What |guidelines |must |appraisers |follow |when |completing |the |sales |comparison |section |of |the |
URAR? |- |CORRECT |ANSWER✔✔-The |Uniform |Appraisal |Dataset |(UAD) |provides |field-specific |
instructions |for |the |URAR |used |by |Fannie |Mae |and |Freddie |Mac.
What |are |the |three |most |common |forms |of |legal |descriptions? |- |CORRECT |ANSWER✔✔-Metes
|and |bounds, |lot |and |block, |and |rectangular |government |survey
Which |of |the |following |is |a |loss |in |value |caused |by |wear |and |tear? |- |CORRECT |ANSWER✔✔-
Physical |Deterioration
Every |foundation |in |direct |contact |with |the |ground |should |have |which |two |features? |- |
CORRECT |ANSWER✔✔-vapor |barrier |and |termiticide
review questions with correct answers
Which |value-influencing |DUST |factor |addresses |the |ease |with |which |the |property |can |be |
conveyed |to |another? |- |CORRECT |ANSWER✔✔-Transferability
Which |of |the |following |formulas |is |used |with |the |index |method |to |find |the |reproduction |cost?
|- |CORRECT |ANSWER✔✔-Present |index |÷ |Index |at |time |of |construction |x |Original |cost |= |
Present |cost
To |arrive |at |the |present |cost, |the |appraiser |applies |a |factor |that |represents |the |costs |of |
construction |over |time |up |to |the |appraisal |date |(present |index |÷ |index |at |time |of |construction)
|multiplied |by |the |subject |building's |original |cost.
When |possible, |comparable |sales |from |______ |should |be |used. |- |CORRECT |ANSWER✔✔-The |
same |neighborhood
Ownership |in |a |planned |unit |development |consists |of |______. |- |CORRECT |ANSWER✔✔-A |
parcel |of |land, |the |structures |on |it, |and |shared |common |areas
In |what |way |is |taxation |an |inherent |burden |on |private |landownership? |- |CORRECT |
ANSWER✔✔-Unpaid |taxes |become |a |lien |against |the |property.
Bianca |wants |to |buy |a |cooperative, |but |she's |unsure |that |she |can |afford |it. |With |a |
cooperative, |her |share |of |mortgage |interest |and |real |estate |taxes |will |be |______. |- |CORRECT |
ANSWER✔✔-Deductible |on |her |personal |income |tax |returns
As |the |resident |in |a |cooperative, |her |share |of |mortgage |interest |and |real |estate |taxes |is |
deductible |on |personal |income |tax |returns.
The |Appraiser |Independence |Requirements |protect |which |party |or |parties? |- |CORRECT |
ANSWER✔✔-The |appraiser, |the |lender, |and |the |consumer
,Using |the |gross |income |multiplier |(GIM) |valuation |method, |a |property's |sales |price |is |divided |
by |its |gross |income. |If |a |property |has |a |sales |price |of |$100,000 |and |gross |income |of |$10,000, |
what |is |its |GIM? |- |CORRECT |ANSWER✔✔-10X |(100,000/10,000)
Which |professional |is |hired |by |the |buyer |and |lender |to |give |an |opinion |of |value |of |the |
property? |- |CORRECT |ANSWER✔✔-Appraiser
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? |- |CORRECT |
ANSWER✔✔-The |appraiser |selects |the |adjusted |sales |price |of |the |property |most |like |the |
subject |to |use |as |the |indicated |value.
What |is |the |definition |of |an |appraisal? |- |CORRECT |ANSWER✔✔-An |estimate |of |value |for |a |
specific |purpose, |party, |and |property |as |of |a |specific |date
Which |of |the |following |properties |requires |the |appraiser |to |include |information |about |the |
monthly |fees |charged |by |the |property |management, |the |location |of |the |subject |property |
within |a |community, |and |the |areas |considered |private |or |public? |- |CORRECT |ANSWER✔✔-
Condo |Unit
If |Mega |Corporation |owns |real |property, |chances |are |it |owns |it |in |______. |- |CORRECT |
ANSWER✔✔-Severalty |Ownership
Corporations |own |property |owned |in |severalty, |like |individuals |do.
James |creates |a |trust |to |hold |a |piece |of |real |estate |he |owns. |He |directs |a |corporate |fiduciary |
to |hold |title |to |the |real |estate |and |provides |instructions |for |the |management, |control, |and |
disposition |of |the |real |estate |upon |his |death. |Given |that |the |trust |only |holds |real |estate, |
James |likely |set |up |a(n) |______ |trust. |- |CORRECT |ANSWER✔✔-Land |Trust
A |land |trust |is |similar |to |other |trusts |except |that |it's |formed |specifically |to |hold |real |estate.
,The |earth's |surface, |extending |downward |to |the |center |of |the |earth |and |upward |to |infinity, |
including |permanently-attached |natural |objects, |is |called |______. |- |CORRECT |ANSWER✔✔-This
|is |a |definition |of |land.
Which |of |these |is |a |written |description |of |a |blueprint? |- |CORRECT |ANSWER✔✔-Building |
specifications |
explain |the |blueprint |and |any |features |that |may |not |be |visible |on |that |building |plan.
What |method |of |land |valuation |converts |the |amount |of |yearly |income |a |site |will |produce |into |
a |value |using |a |capitalization |rate? |- |CORRECT |ANSWER✔✔-Ground |Rent |Capitalization |
Method |(GRM)
As |part |of |completing |an |appraisal |using |the |cost |approach |method, |what |must |appraisers |do?
|- |CORRECT |ANSWER✔✔-Complete |the |cost |approach |section |of |the |URAR |form
Which |of |the |following |analyzes |net |operating |income |(NOI) |for |a |single |year, |and |is |used |
when |the |property's |income |isn't |expected |to |vary |much |over |time?
The |_method |converts |a |single |year's |expected |income |(or |an |annual |average) |into |a |market |
value. |This |is |the |expected |return |on |investment |the |property |is |capable |of |producing |in |a |
single |year: |the |first |year |of |ownership. |- |CORRECT |ANSWER✔✔-Direct |Capitalization
Real |estate, |plus |all |of |the |interests, |benefits, |and |rights |included |in |ownership, |is |also |known |
as |______. |- |CORRECT |ANSWER✔✔-Real |Property
The |US |Census |Bureau |is |a |good |source |of |what |type |of |data |needed |by |appraisers? |- |
CORRECT |ANSWER✔✔-General |Data
What's |the |term |for |certified |energy-efficient |homes |that |have |met |specific |qualifications? |- |
CORRECT |ANSWER✔✔-ENERGY |STAR®-qualified |home
, The |______ |system |keeps |air |fresh |by |recycling |air |and |removing |odors |and |pollutants. |- |
CORRECT |ANSWER✔✔-Ventilation
Which |part |of |the |cost |approach |equation |is |considered |the |most |difficult |part |to |estimate |
accurately?
__is |considered |the |most |difficult |part |of |the |cost |approach |equation |to |estimate |accurately, |
partially |because |it |can |vary |considerably |based |on |specific |market |conditions |as |of |the |
appraisal |date. |In |addition, |a |buyer's |measure |of |depreciation |can |also |vary |quite |a |bit, |
depending |on |the |price |range |of |homes |in |the |local |area. |- |CORRECT |ANSWER✔✔-Accrued |
Depreciation
When |discounted |cash |flow |analysis |is |used, |what's |discounted?
_is |discounted |to |a |present |value |when |this |method |is |used. |- |CORRECT |ANSWER✔✔-
Anticipated |future |income
What |guidelines |must |appraisers |follow |when |completing |the |sales |comparison |section |of |the |
URAR? |- |CORRECT |ANSWER✔✔-The |Uniform |Appraisal |Dataset |(UAD) |provides |field-specific |
instructions |for |the |URAR |used |by |Fannie |Mae |and |Freddie |Mac.
What |are |the |three |most |common |forms |of |legal |descriptions? |- |CORRECT |ANSWER✔✔-Metes
|and |bounds, |lot |and |block, |and |rectangular |government |survey
Which |of |the |following |is |a |loss |in |value |caused |by |wear |and |tear? |- |CORRECT |ANSWER✔✔-
Physical |Deterioration
Every |foundation |in |direct |contact |with |the |ground |should |have |which |two |features? |- |
CORRECT |ANSWER✔✔-vapor |barrier |and |termiticide
