Real Estate Appraisal Final Exam
Questions and Answers
The four stages of the neighborhood life cycle are growth, equilibrium, decline, and
what? - ANS-Rejuvenation
Which of the following will an appraiser use to determine potential gross income for an
income property appraisal? - ANS-Market rent
The cost approach to finding an appraised value measures _______. - ANS-The cost to
acquire land and construct a reproduction
Which of these is an example of a rectangular survey system description? - ANS-S 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? - ANS-Research, analysis, and reporting
The question, "What's the purpose of this appraisal?" can be answered by which step of
the appraisal process? - ANS-State the problem.
In the income capitalization approach to appraisal, NOI is found by ______. - ANS-
Subtracting 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? - ANS-Scarcity
If Mega Corporation owns real property, chances are it owns it in ______. - ANS-
Severalty
Which property type presents the most potential drawbacks to using the cost approach
to determine value? - ANS-Residential
How does an appraiser begin an appraisal? - ANS-By 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? - ANS-Real estate tax
, To determine the net operating income of a property, subtract the total operating
expenses from the ______. - ANS-Effective gross income
NOI ÷ V = R is the formula used to calculate what? - ANS-The capitalization rate
Which of the following is true if the "date of sale" field in the sales comparison grid of the
URAR says "s01/15;Unk"? - ANS-The sale of the comparable property was settled in
January 2015 and the contract date is unknown.
In relation to appraisals, what's a "federally related transaction"? - ANS-A real estate
transaction in which a federal financial agency or regulatory authority is involved
Isabella is thinking about buying a one-bedroom residence in a cooperative. A
residence in a cooperative, unlike a condominium, is considered ______. - ANS-
Personal property
Which of the following formulas is used with the index method to find the reproduction
cost? - ANS-Present index ÷ Index at time of construction x Original cost = Present cost
Which of the following is the most thorough presentation of the appraiser's solution to
the appraisal problem? - ANS-Narrative report
Raymond owns a property that's lower-quality than the higher-quality property adjacent
to his. The high-quality property can increase the value of the lower-quality property.
What economic principle is this? - ANS-Progression
What part of an appraisal report would you expect to see first if you were looking at a
narrative appraisal report for a commercial property? - ANS-Cover letter
Which factor that influences value addresses the ease with which the property can be
conveyed to another? - ANS-Transferability
What are the two report types permitted by the Uniform Standards of Professional
Appraisal Practice? - ANS-The restricted appraisal report and the appraisal report
With which approach to value does the appraiser analyze a property's ability to earn
future income? - ANS-Income approach
How many approaches to value do appraisers generally use? - ANS-Three
An appraisal is being done for an investment property. The total value of the building
and land is $200,000, and the value of the building alone is $150,000. What's the land
value? - ANS-$50,000
If an adjustment is needed for sales or financing concessions, when should an
appraiser make this adjustment? - ANS-First, before adjusting anything else
Questions and Answers
The four stages of the neighborhood life cycle are growth, equilibrium, decline, and
what? - ANS-Rejuvenation
Which of the following will an appraiser use to determine potential gross income for an
income property appraisal? - ANS-Market rent
The cost approach to finding an appraised value measures _______. - ANS-The cost to
acquire land and construct a reproduction
Which of these is an example of a rectangular survey system description? - ANS-S 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? - ANS-Research, analysis, and reporting
The question, "What's the purpose of this appraisal?" can be answered by which step of
the appraisal process? - ANS-State the problem.
In the income capitalization approach to appraisal, NOI is found by ______. - ANS-
Subtracting 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? - ANS-Scarcity
If Mega Corporation owns real property, chances are it owns it in ______. - ANS-
Severalty
Which property type presents the most potential drawbacks to using the cost approach
to determine value? - ANS-Residential
How does an appraiser begin an appraisal? - ANS-By 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? - ANS-Real estate tax
, To determine the net operating income of a property, subtract the total operating
expenses from the ______. - ANS-Effective gross income
NOI ÷ V = R is the formula used to calculate what? - ANS-The capitalization rate
Which of the following is true if the "date of sale" field in the sales comparison grid of the
URAR says "s01/15;Unk"? - ANS-The sale of the comparable property was settled in
January 2015 and the contract date is unknown.
In relation to appraisals, what's a "federally related transaction"? - ANS-A real estate
transaction in which a federal financial agency or regulatory authority is involved
Isabella is thinking about buying a one-bedroom residence in a cooperative. A
residence in a cooperative, unlike a condominium, is considered ______. - ANS-
Personal property
Which of the following formulas is used with the index method to find the reproduction
cost? - ANS-Present index ÷ Index at time of construction x Original cost = Present cost
Which of the following is the most thorough presentation of the appraiser's solution to
the appraisal problem? - ANS-Narrative report
Raymond owns a property that's lower-quality than the higher-quality property adjacent
to his. The high-quality property can increase the value of the lower-quality property.
What economic principle is this? - ANS-Progression
What part of an appraisal report would you expect to see first if you were looking at a
narrative appraisal report for a commercial property? - ANS-Cover letter
Which factor that influences value addresses the ease with which the property can be
conveyed to another? - ANS-Transferability
What are the two report types permitted by the Uniform Standards of Professional
Appraisal Practice? - ANS-The restricted appraisal report and the appraisal report
With which approach to value does the appraiser analyze a property's ability to earn
future income? - ANS-Income approach
How many approaches to value do appraisers generally use? - ANS-Three
An appraisal is being done for an investment property. The total value of the building
and land is $200,000, and the value of the building alone is $150,000. What's the land
value? - ANS-$50,000
If an adjustment is needed for sales or financing concessions, when should an
appraiser make this adjustment? - ANS-First, before adjusting anything else
