Unit 16: Real Estate Appraisal Test
Questions All Solved.
The MOST probable price is market
A)
income.
B)
value.
C)
price.
D)
cost. - Answer B) value.
Market value is defined as the most probable price that a willing buyer will pay.
The standards of appraisal practice are
A)
USPAP.
B)
ECOA.
C)
RESPA.
D)
FNMA. - Answer A) USPAP.
USPAP (Uniform Standards of Professional Appraisal Practice) is promulgated by the Appraisal
Foundation and revised every two years.
A developer buys the last five vacant lots in a subdivision and constructs a large, expensive
home on each lot. The homes sell for what are record-setting high prices for the area. The
owners of the older, lesser-valued houses in the neighborhood may find that the values of their
homes are affected by what principle?
A)
, Regression
B)
Competition
C)
Progression
D)
Increasing returns - Answer C) Progression
The value of modest homes in an area may increase with the presence of more expensive
homes. This is an example of the principle of progression.
The amount of money a property is likely to command in the marketplace is its
A)
subjective value.
B)
market value.
C)
intrinsic value.
D)
book value. - Answer B) market value.
Market value is the most probable price that property should bring in a fair sale.
A six-bedroom home with a tennis court in a neighborhood where there are no other similar-
sized homes and no homes with tennis courts would MOST likely be subject to what principle?
A)
Regression
B)
Change
C)
Progression
D)
Assemblage - Answer A) Regression
Questions All Solved.
The MOST probable price is market
A)
income.
B)
value.
C)
price.
D)
cost. - Answer B) value.
Market value is defined as the most probable price that a willing buyer will pay.
The standards of appraisal practice are
A)
USPAP.
B)
ECOA.
C)
RESPA.
D)
FNMA. - Answer A) USPAP.
USPAP (Uniform Standards of Professional Appraisal Practice) is promulgated by the Appraisal
Foundation and revised every two years.
A developer buys the last five vacant lots in a subdivision and constructs a large, expensive
home on each lot. The homes sell for what are record-setting high prices for the area. The
owners of the older, lesser-valued houses in the neighborhood may find that the values of their
homes are affected by what principle?
A)
, Regression
B)
Competition
C)
Progression
D)
Increasing returns - Answer C) Progression
The value of modest homes in an area may increase with the presence of more expensive
homes. This is an example of the principle of progression.
The amount of money a property is likely to command in the marketplace is its
A)
subjective value.
B)
market value.
C)
intrinsic value.
D)
book value. - Answer B) market value.
Market value is the most probable price that property should bring in a fair sale.
A six-bedroom home with a tennis court in a neighborhood where there are no other similar-
sized homes and no homes with tennis courts would MOST likely be subject to what principle?
A)
Regression
B)
Change
C)
Progression
D)
Assemblage - Answer A) Regression
