Test Bank 3 - General Appraiser Income Approach Latest
Final Test Review of 450 Recently Tested Questions and
Correct Answers/ Practice Test for General Appraiser
Income Approach Final Exam (2026-2027)
An appraiser could not inspect a room because of a locked door. The owner of the
property indicated that they had lost the key and couldn't open the door, but that
there was "nothing wrong with the room". Should the appraiser disclose in the
scope of work that the room was not inspected? - ANSWER-Yes, not reporting it
might mislead the client and intended users
Properly identifying the problem to be solved is critical in order to produce: -
ANSWER-Credible results
Which of the following is NOT one of the key factors in helping the appraiser
determine the appropriate Scope of Work for an assignment? - ANSWER-Fee and
turnaround time for the assignment
Disclosure of the scope of work in an appraisal report is best done: - ANSWER-In
the relevant section of the report
The first step in determining the scope of work in the appraisal process is to: -
ANSWER-Identify the problem to be solved
The two most basic criteria for determining whether or not the scope of work is
appropriate are: - ANSWER-Intended user expectations and appraiser's peers'
actions
1
,Disclosure of the work not performed is: - ANSWER-Required when necessary to
not mislead
Once a scope of work has been decided upon by the appraiser, it can never change.
- ANSWER-False
An appraiser applied an overall capitalization rate of 8% when it should have been
7%. If the net operating income for the property is $100,000, what would be the
difference in value? - ANSWER-+/- $178,000
The final item in the minimum reporting requirements is: - ANSWER-certification
According to USPAP, how many formal steps are there to the appraisal process? -
ANSWER-6
Examples of assignment conditions are: - ANSWER-Laws and regulations
After the appraiser determines the scope of work, the next step in the appraisal
process is: - ANSWER-Data collection and analysis
After reading the reconciliation in the appraisal report, the intended user should be
able to say: - ANSWER-I understand how all the information supports the value
conclusion
Partial subletting and easement fees are included in: - ANSWER-Other income
Income data provided by the owner of the subject property - ANSWER-Should be
analyzed by the appraiser to determine reliability
2
,The term used to refer to the bringing together of data, calculations, opinions and
conclusions to provide the reasoning to support the final opinion of value is: -
ANSWER-Reconciliation
Income data obtained from internet sources: - ANSWER-Should be verified by the
appraiser
Buildings which are in the least desirable locations, lacking proximity to desirable
traffic areas, are referred to as: - ANSWER-Class C
Potential Gross Income minus Vacancy and Collection Loss equals: - ANSWER-
Effective gross income
Primary factors discussed in this chapter for selection of comparable are: -
ANSWER-Location, building class, amenities
In gathering appropriate rental data, the appraiser should also consider all of the
following EXCEPT: - ANSWER-Overall Capitalization Rate
Potential Gross Income: - ANSWER-Is based upon 100% occupancy
For one property, the Sales Comparison Approach indicates a value of $325,000.
The Cost Approach reflects a value of $315,000, and the Income Approach yields
$295,000 as an indicated value. Using the weighted mean methodology and giving
60% weight to the Income Approach, 10% to the Cost Approach, and 30% to the
Sales Comparison Approach, what is the indicated reconciled value? - ANSWER-
$306,000
3
, Due to the downturn in the economy, an investor had to reduce his asking rent
from $15.00 per square foot to $12.75 per square foot. On a percentage basis, what
decrease in rent does that represent? - ANSWER-15%
Applying the I/RV formula, if I = $10,000 and R = .08, what is V? - ANSWER-
$125,000
What date would be 130 days from May 15, 2008? - ANSWER-September 22,
2008
Using the numbers 33, 37, 39, 40, and 44, calculate the standard deviation. -
ANSWER-4.04
In reconciling to a final value; an appraiser places 50% of the weight on the
Income Approach, 25% of the weight on the Cost Approach and 25% of the weight
on the Sales Comparison Approach. This is an example of: - ANSWER-Weighted
mean
Income from a property increases 6% per year. What is the income to be next year
if it was $45,000 this year? - ANSWER-$47,700
Using the numbers 100, 103, 105, 106, and 108, calculate the mean. - ANSWER-
104.4
The number 20,000 is what percentage of the number 336,000? - ANSWER-5.95
Using the numbers 33, 37, 39, 40, and 44, calculate the mean. - ANSWER-38.60
4
Final Test Review of 450 Recently Tested Questions and
Correct Answers/ Practice Test for General Appraiser
Income Approach Final Exam (2026-2027)
An appraiser could not inspect a room because of a locked door. The owner of the
property indicated that they had lost the key and couldn't open the door, but that
there was "nothing wrong with the room". Should the appraiser disclose in the
scope of work that the room was not inspected? - ANSWER-Yes, not reporting it
might mislead the client and intended users
Properly identifying the problem to be solved is critical in order to produce: -
ANSWER-Credible results
Which of the following is NOT one of the key factors in helping the appraiser
determine the appropriate Scope of Work for an assignment? - ANSWER-Fee and
turnaround time for the assignment
Disclosure of the scope of work in an appraisal report is best done: - ANSWER-In
the relevant section of the report
The first step in determining the scope of work in the appraisal process is to: -
ANSWER-Identify the problem to be solved
The two most basic criteria for determining whether or not the scope of work is
appropriate are: - ANSWER-Intended user expectations and appraiser's peers'
actions
1
,Disclosure of the work not performed is: - ANSWER-Required when necessary to
not mislead
Once a scope of work has been decided upon by the appraiser, it can never change.
- ANSWER-False
An appraiser applied an overall capitalization rate of 8% when it should have been
7%. If the net operating income for the property is $100,000, what would be the
difference in value? - ANSWER-+/- $178,000
The final item in the minimum reporting requirements is: - ANSWER-certification
According to USPAP, how many formal steps are there to the appraisal process? -
ANSWER-6
Examples of assignment conditions are: - ANSWER-Laws and regulations
After the appraiser determines the scope of work, the next step in the appraisal
process is: - ANSWER-Data collection and analysis
After reading the reconciliation in the appraisal report, the intended user should be
able to say: - ANSWER-I understand how all the information supports the value
conclusion
Partial subletting and easement fees are included in: - ANSWER-Other income
Income data provided by the owner of the subject property - ANSWER-Should be
analyzed by the appraiser to determine reliability
2
,The term used to refer to the bringing together of data, calculations, opinions and
conclusions to provide the reasoning to support the final opinion of value is: -
ANSWER-Reconciliation
Income data obtained from internet sources: - ANSWER-Should be verified by the
appraiser
Buildings which are in the least desirable locations, lacking proximity to desirable
traffic areas, are referred to as: - ANSWER-Class C
Potential Gross Income minus Vacancy and Collection Loss equals: - ANSWER-
Effective gross income
Primary factors discussed in this chapter for selection of comparable are: -
ANSWER-Location, building class, amenities
In gathering appropriate rental data, the appraiser should also consider all of the
following EXCEPT: - ANSWER-Overall Capitalization Rate
Potential Gross Income: - ANSWER-Is based upon 100% occupancy
For one property, the Sales Comparison Approach indicates a value of $325,000.
The Cost Approach reflects a value of $315,000, and the Income Approach yields
$295,000 as an indicated value. Using the weighted mean methodology and giving
60% weight to the Income Approach, 10% to the Cost Approach, and 30% to the
Sales Comparison Approach, what is the indicated reconciled value? - ANSWER-
$306,000
3
, Due to the downturn in the economy, an investor had to reduce his asking rent
from $15.00 per square foot to $12.75 per square foot. On a percentage basis, what
decrease in rent does that represent? - ANSWER-15%
Applying the I/RV formula, if I = $10,000 and R = .08, what is V? - ANSWER-
$125,000
What date would be 130 days from May 15, 2008? - ANSWER-September 22,
2008
Using the numbers 33, 37, 39, 40, and 44, calculate the standard deviation. -
ANSWER-4.04
In reconciling to a final value; an appraiser places 50% of the weight on the
Income Approach, 25% of the weight on the Cost Approach and 25% of the weight
on the Sales Comparison Approach. This is an example of: - ANSWER-Weighted
mean
Income from a property increases 6% per year. What is the income to be next year
if it was $45,000 this year? - ANSWER-$47,700
Using the numbers 100, 103, 105, 106, and 108, calculate the mean. - ANSWER-
104.4
The number 20,000 is what percentage of the number 336,000? - ANSWER-5.95
Using the numbers 33, 37, 39, 40, and 44, calculate the mean. - ANSWER-38.60
4
