RE 194;REAL ESTATE APPRAISAL FINAL EXAM
ANSWERS|LATEST !!!!2026|GRADED A+| (EXAM
An appraisal is best defined as a/an - ANSWER opinion of value
The four factors of value - ANSWER utility, scarcity, desire, effective purchasing
power
The first step in the appraisal process is to: - ANSWER Define the appraisal problem
Which of the following types of data would be considered to be most general in nature? -
ANSWER Regional and community data
What are the four characteristics of a highest and best use? - ANSWER physically
possible, legally permissible, financially feasible, and maximally productive.
Which of the following architectural styles is a one-story house? - ANSWER ranch
house or rambler
The formula applied when using the cost approach to value is: - ANSWER Property
value = Cost of improvements - Depreciation of improvements + Land value
Which principle of value is the theoretical basis for the sales comparison approach to value?
- ANSWER Principle of substitution
1
, The formula that is the basis for the income approach to value is: - ANSWER Value =
Income / Rate of Return
The most detailed type of written report as described in Standards Rule 2-2 is the: -
ANSWER Appraisal Report
Division of a multi-story condominium development into individual units is made possible
through: - ANSWER vertical subdivision
What is the name of the nonprofit organization formed in 1987 that has the responsibility of
updating the USPAP and setting minimum standards for state appraiser licensing and
certification? - ANSWER Appraisal Foundation
An appraiser who is self-employed and performs appraisals for different clients in known as
a/an: - ANSWER fee appraiser
A property sells for $250,000, subject to seller financing and a below-market interest rate.
$250,000 is the: - ANSWER Price
Which of the following systems of land description would use a point of beginning? -
ANSWER Metes and bounds system
The current highest and best use of a parcel is expected to change in the near future. The
use to which the land is put while awaiting this change is the: - ANSWER interim use
In a house, the kitchen would be considered to be part of the: - ANSWER working
zone
The simplest method of estimating construction costs is the: - ANSWER comparative
unit method
2
ANSWERS|LATEST !!!!2026|GRADED A+| (EXAM
An appraisal is best defined as a/an - ANSWER opinion of value
The four factors of value - ANSWER utility, scarcity, desire, effective purchasing
power
The first step in the appraisal process is to: - ANSWER Define the appraisal problem
Which of the following types of data would be considered to be most general in nature? -
ANSWER Regional and community data
What are the four characteristics of a highest and best use? - ANSWER physically
possible, legally permissible, financially feasible, and maximally productive.
Which of the following architectural styles is a one-story house? - ANSWER ranch
house or rambler
The formula applied when using the cost approach to value is: - ANSWER Property
value = Cost of improvements - Depreciation of improvements + Land value
Which principle of value is the theoretical basis for the sales comparison approach to value?
- ANSWER Principle of substitution
1
, The formula that is the basis for the income approach to value is: - ANSWER Value =
Income / Rate of Return
The most detailed type of written report as described in Standards Rule 2-2 is the: -
ANSWER Appraisal Report
Division of a multi-story condominium development into individual units is made possible
through: - ANSWER vertical subdivision
What is the name of the nonprofit organization formed in 1987 that has the responsibility of
updating the USPAP and setting minimum standards for state appraiser licensing and
certification? - ANSWER Appraisal Foundation
An appraiser who is self-employed and performs appraisals for different clients in known as
a/an: - ANSWER fee appraiser
A property sells for $250,000, subject to seller financing and a below-market interest rate.
$250,000 is the: - ANSWER Price
Which of the following systems of land description would use a point of beginning? -
ANSWER Metes and bounds system
The current highest and best use of a parcel is expected to change in the near future. The
use to which the land is put while awaiting this change is the: - ANSWER interim use
In a house, the kitchen would be considered to be part of the: - ANSWER working
zone
The simplest method of estimating construction costs is the: - ANSWER comparative
unit method
2
