BASIC APPRAISAL PRINCIPLES COMPREHENSIVE EXAM
ACTUAL QUESTIONS AND ANSWERS SURE A+
✔✔Inflation - ✔✔When the purchasing power of money is diminished due to prices
rising and an increases volume of money
✔✔Fiscal policy - ✔✔Is the government plan for spending taxation and debt
management
✔✔deficit spending - ✔✔when the government spends more money than it takes in
✔✔Monetary policy - ✔✔The government means of controlling the supply and cost of
money
✔✔Federal reserve board - ✔✔The government body responsible for u.s. Monetary
policy maintaining economic stability and regulating commercial banks
✔✔Primary mortgage markets - ✔✔When lenders make mortgage loans directly to
borrowers. This is also referred to simply as primary markets
✔✔Secondary Mortgage Markets - ✔✔The private investors and governments agencies
that buy and sell real estate mortgages.
✔✔portfolio lenders - ✔✔Financial institutions that make real estate loans that they
keep and service in house instead of selling them on the secondary market.
✔✔Amortization - ✔✔When the principle and interest of a loan is repaid in installments.
During the amortization process the debt is retired along with all interest on the principle
balance.
✔✔Conventional Loan - ✔✔A loan not insured or guaranteed by a government entity.
✔✔Balloon mortgage - ✔✔A mortgage which is not fully amortized and becomes due
and payable in a lump sum
✔✔Marketability (small) Analysis - ✔✔The study of the market climate for a specific
property or type of property.
✔✔District - ✔✔An area consisting of one particular land use such as multi family
residential commercial and industrial
✔✔neighborhood - ✔✔A compilation or a group of complimentary land uses.
, ✔✔Economic Base Analysis - ✔✔A study of the present business and employment
climate in an area conducted to determine the likelihood of continued stability, growth,
or decline
✔✔Base companies - ✔✔The main companies and industries that bring new
businesses and jobs to the area.
✔✔Market Disaggregation - ✔✔A supply analysis that identifies properties by type,
features and use which are similar and likely to complete with the subject property.
✔✔Market Segmentation - ✔✔A process that involves identifying and categorizing the
various sub market hat exist within a larger market and focusing on participants in the
demand side of the market
✔✔Extraordinary Assumption h - ✔✔An assumption directly related to a specific
assignment as of the effective date of the assignment results which if found to be false
could alter the appraisers opinions or conclusions.
✔✔Hypothetical Condition - ✔✔A condition related to a specific assignment which is
contrary to what is known by the appraiser to exist on the effective date of the
assignment results but is used for the purpose of analysis.
✔✔ Appraisal Review - ✔✔The act or process of developing and communicating an
opinion about the quality of another appraiser's work that was performed as part of an
appraisal, appraisal review, or appraisal consulting assignment
✔✔Appraisal - ✔✔The act or process of developing an opinion of value; an opinion of
value of or pertaining to appraising and related functions, such as appraisal proactive or
appraisal services.
✔✔Appraisal Practice - ✔✔Services performed by an individual acting as an appraiser,
including but not limited to appraisal, appraisal review, as well as other services.
✔✔Appraiser - ✔✔One who is expected to perform valuation services competently and
in a manner that is independent, impartial, and objective.
✔✔Client - ✔✔The party or parties who engage an appraiser (by employment or
contract) in a specific assignment.
✔✔Confidential Information - ✔✔Info that is either identified by the client as confidential
when providing it to an appraiser and that is not available from an other source; or
classified as confidential or private by applicable law or regulation
✔✔Credible - ✔✔Worthy of belief
ACTUAL QUESTIONS AND ANSWERS SURE A+
✔✔Inflation - ✔✔When the purchasing power of money is diminished due to prices
rising and an increases volume of money
✔✔Fiscal policy - ✔✔Is the government plan for spending taxation and debt
management
✔✔deficit spending - ✔✔when the government spends more money than it takes in
✔✔Monetary policy - ✔✔The government means of controlling the supply and cost of
money
✔✔Federal reserve board - ✔✔The government body responsible for u.s. Monetary
policy maintaining economic stability and regulating commercial banks
✔✔Primary mortgage markets - ✔✔When lenders make mortgage loans directly to
borrowers. This is also referred to simply as primary markets
✔✔Secondary Mortgage Markets - ✔✔The private investors and governments agencies
that buy and sell real estate mortgages.
✔✔portfolio lenders - ✔✔Financial institutions that make real estate loans that they
keep and service in house instead of selling them on the secondary market.
✔✔Amortization - ✔✔When the principle and interest of a loan is repaid in installments.
During the amortization process the debt is retired along with all interest on the principle
balance.
✔✔Conventional Loan - ✔✔A loan not insured or guaranteed by a government entity.
✔✔Balloon mortgage - ✔✔A mortgage which is not fully amortized and becomes due
and payable in a lump sum
✔✔Marketability (small) Analysis - ✔✔The study of the market climate for a specific
property or type of property.
✔✔District - ✔✔An area consisting of one particular land use such as multi family
residential commercial and industrial
✔✔neighborhood - ✔✔A compilation or a group of complimentary land uses.
, ✔✔Economic Base Analysis - ✔✔A study of the present business and employment
climate in an area conducted to determine the likelihood of continued stability, growth,
or decline
✔✔Base companies - ✔✔The main companies and industries that bring new
businesses and jobs to the area.
✔✔Market Disaggregation - ✔✔A supply analysis that identifies properties by type,
features and use which are similar and likely to complete with the subject property.
✔✔Market Segmentation - ✔✔A process that involves identifying and categorizing the
various sub market hat exist within a larger market and focusing on participants in the
demand side of the market
✔✔Extraordinary Assumption h - ✔✔An assumption directly related to a specific
assignment as of the effective date of the assignment results which if found to be false
could alter the appraisers opinions or conclusions.
✔✔Hypothetical Condition - ✔✔A condition related to a specific assignment which is
contrary to what is known by the appraiser to exist on the effective date of the
assignment results but is used for the purpose of analysis.
✔✔ Appraisal Review - ✔✔The act or process of developing and communicating an
opinion about the quality of another appraiser's work that was performed as part of an
appraisal, appraisal review, or appraisal consulting assignment
✔✔Appraisal - ✔✔The act or process of developing an opinion of value; an opinion of
value of or pertaining to appraising and related functions, such as appraisal proactive or
appraisal services.
✔✔Appraisal Practice - ✔✔Services performed by an individual acting as an appraiser,
including but not limited to appraisal, appraisal review, as well as other services.
✔✔Appraiser - ✔✔One who is expected to perform valuation services competently and
in a manner that is independent, impartial, and objective.
✔✔Client - ✔✔The party or parties who engage an appraiser (by employment or
contract) in a specific assignment.
✔✔Confidential Information - ✔✔Info that is either identified by the client as confidential
when providing it to an appraiser and that is not available from an other source; or
classified as confidential or private by applicable law or regulation
✔✔Credible - ✔✔Worthy of belief
