Assessment Fundamentals for
Appraisers - Course 1A Questions
Fully Solved.
What are the 7 criteria the appraiser must apply when determining fair market value of real
property? - Answer Zoning, use, covenants/restrictions, sales, CUVA easement, restrictions,
income, other
What are the 3 approaches to value? - Answer market approach,
cost approach, and income approach
What economic principle is the basis for the adjustment process in the market approach to
value? - Answer Principle of Substitution
What is the first step in the appraisal process? - Answer define the problem
When is the market approach used? - Answer when a bank of sales of
comparable properties exists. (residential and some light commercial properties)
Where is the best source of information? - Answer local market
What are the 4 forces that affect value? - Answer P- Physical
E- Economic
G- Governmental
S- Social
What is a bona fide sale? - Answer a transaction which has occurred in good faith without
fraud or deceit carried out by unrelated or unaffiliated parties, as by a
willing buyer and a willing seller, each acting in his or her own self-interest, including but not
limited to a distress sale, short sale, bank sale, or sale at public auction.
What is the seller's bill of rights? - Answer S- Sell
L- Lease
U- Use
G- Give away
E- Enter
Appraisers - Course 1A Questions
Fully Solved.
What are the 7 criteria the appraiser must apply when determining fair market value of real
property? - Answer Zoning, use, covenants/restrictions, sales, CUVA easement, restrictions,
income, other
What are the 3 approaches to value? - Answer market approach,
cost approach, and income approach
What economic principle is the basis for the adjustment process in the market approach to
value? - Answer Principle of Substitution
What is the first step in the appraisal process? - Answer define the problem
When is the market approach used? - Answer when a bank of sales of
comparable properties exists. (residential and some light commercial properties)
Where is the best source of information? - Answer local market
What are the 4 forces that affect value? - Answer P- Physical
E- Economic
G- Governmental
S- Social
What is a bona fide sale? - Answer a transaction which has occurred in good faith without
fraud or deceit carried out by unrelated or unaffiliated parties, as by a
willing buyer and a willing seller, each acting in his or her own self-interest, including but not
limited to a distress sale, short sale, bank sale, or sale at public auction.
What is the seller's bill of rights? - Answer S- Sell
L- Lease
U- Use
G- Give away
E- Enter
