Louisiana Licensed Residential
Appraiser Exam Practice Questions And
Correct Answers (Verified Answers) Plus
Rationale 2027 Q&A| Instant Download
Pdf.
1. What is the primary purpose of the sales comparison approach when
appraising a one-unit residential property?
A. To estimate the property's replacement cost
B. To capitalize the property's net operating income
C. To estimate value by comparing the subject with similar properties that
have recently sold
D. To determine the property's assessed tax value
The sales comparison approach estimates market value by analyzing
recent sales of comparable properties and making appropriate
adjustments for differences between the comparables and the subject.
2. An appraiser is valuing a single-family residence in a neighborhood
where several nearly identical properties have recently sold. Which
valuation approach would generally receive the greatest
consideration?
A. Cost approach only
B. Income capitalization approach
,C. Sales comparison approach
D. Gross income multiplier approach
The sales comparison approach is typically most applicable to owner-
occupied residential properties when sufficient recent and comparable
market sales are available.
3. A comparable property sold for $325,000 three months ago. Since the
sale, market prices for similar homes have increased by approximately
4%. Assuming all other factors are equal, what adjusted indication
should the appraiser consider?
A. $312,000
B. $325,000
C. $338,000
D. $351,000
A 4% market-condition adjustment increases the comparable's indication
from $325,000 to $338,000, reflecting appreciation since the comparable's
sale date.
4. A subject property has three bedrooms, while a comparable has four
bedrooms and is otherwise similar. If the additional bedroom
contributes $20,000 to market value, how should the comparable be
adjusted?
A. Increase the comparable by $20,000
B. Decrease the comparable by $20,000
C. Increase the subject by $20,000
D. No adjustment is necessary
Because the comparable is superior to the subject by one bedroom, its sale
price must be adjusted downward to reflect the subject's inferior feature.
5. A comparable sold for $410,000 and has a two-car garage. The subject
has only a one-car garage. If market evidence indicates that the
, second garage space contributes $15,000, what adjusted indication
results?
A. $395,000
B. $395,000
C. $410,000
D. $425,000
The comparable is superior because it has an additional garage space, so
$15,000 is deducted from its sale price, producing an adjusted indication of
$395,000.
6. Which characteristic is generally most important when selecting a
comparable sale for a residential appraisal?
A. The comparable has the highest sale price in the area
B. The comparable was advertised by the same brokerage
C. The comparable competes with the subject in the same relevant market
D. The comparable is located in a different neighborhood with similar
architectural style
A good comparable should compete with the subject for the same buyers
and sellers, with similarity in location, physical characteristics, and market
appeal receiving significant consideration.
7. An appraiser discovers that a comparable sale was between two
related parties and was completed at a price substantially different
from prevailing market evidence. What should the appraiser do?
A. Automatically use the sale because it is recent
B. Increase the comparable's price to the highest neighborhood sale
C. Investigate the transaction and determine whether it is sufficiently
arm's-length and representative of market behavior
D. Use the transaction without adjustment because family sales are always
valid
, A related-party transaction may not reflect market value, so the appraiser
must investigate the circumstances before determining whether the sale is
an appropriate comparable.
8. Which of the following is an example of a financing concession that
may require consideration in a residential sales comparison analysis?
A. The property's lot size
B. The age of the roof
C. The seller paying the buyer's closing costs
D. The number of bedrooms
Seller-paid closing costs are a form of concession that may cause the
reported sale price to differ from the price a buyer would have paid under
typical market terms.
9. A comparable sold for $300,000 with the seller providing $10,000
toward the buyer's closing costs. If the concession was above what is
typical in the market, what should the appraiser generally consider?
A. Adding $10,000 to the comparable's sale price
B. Ignoring the concession entirely
C. Adjusting the comparable to reflect the effect of the atypical concession
D. Automatically rejecting every comparable involving concessions
An atypical concession can artificially inflate the effective price paid for the
real estate, so the appraiser should analyze its market impact and make an
appropriate adjustment when supported by evidence.
10. Which principle states that a prudent buyer will not pay more
for a property than the cost of acquiring an equally desirable
substitute?
A. Principle of contribution
B. Principle of anticipation
C. Principle of substitution
D. Principle of conformity
Appraiser Exam Practice Questions And
Correct Answers (Verified Answers) Plus
Rationale 2027 Q&A| Instant Download
Pdf.
1. What is the primary purpose of the sales comparison approach when
appraising a one-unit residential property?
A. To estimate the property's replacement cost
B. To capitalize the property's net operating income
C. To estimate value by comparing the subject with similar properties that
have recently sold
D. To determine the property's assessed tax value
The sales comparison approach estimates market value by analyzing
recent sales of comparable properties and making appropriate
adjustments for differences between the comparables and the subject.
2. An appraiser is valuing a single-family residence in a neighborhood
where several nearly identical properties have recently sold. Which
valuation approach would generally receive the greatest
consideration?
A. Cost approach only
B. Income capitalization approach
,C. Sales comparison approach
D. Gross income multiplier approach
The sales comparison approach is typically most applicable to owner-
occupied residential properties when sufficient recent and comparable
market sales are available.
3. A comparable property sold for $325,000 three months ago. Since the
sale, market prices for similar homes have increased by approximately
4%. Assuming all other factors are equal, what adjusted indication
should the appraiser consider?
A. $312,000
B. $325,000
C. $338,000
D. $351,000
A 4% market-condition adjustment increases the comparable's indication
from $325,000 to $338,000, reflecting appreciation since the comparable's
sale date.
4. A subject property has three bedrooms, while a comparable has four
bedrooms and is otherwise similar. If the additional bedroom
contributes $20,000 to market value, how should the comparable be
adjusted?
A. Increase the comparable by $20,000
B. Decrease the comparable by $20,000
C. Increase the subject by $20,000
D. No adjustment is necessary
Because the comparable is superior to the subject by one bedroom, its sale
price must be adjusted downward to reflect the subject's inferior feature.
5. A comparable sold for $410,000 and has a two-car garage. The subject
has only a one-car garage. If market evidence indicates that the
, second garage space contributes $15,000, what adjusted indication
results?
A. $395,000
B. $395,000
C. $410,000
D. $425,000
The comparable is superior because it has an additional garage space, so
$15,000 is deducted from its sale price, producing an adjusted indication of
$395,000.
6. Which characteristic is generally most important when selecting a
comparable sale for a residential appraisal?
A. The comparable has the highest sale price in the area
B. The comparable was advertised by the same brokerage
C. The comparable competes with the subject in the same relevant market
D. The comparable is located in a different neighborhood with similar
architectural style
A good comparable should compete with the subject for the same buyers
and sellers, with similarity in location, physical characteristics, and market
appeal receiving significant consideration.
7. An appraiser discovers that a comparable sale was between two
related parties and was completed at a price substantially different
from prevailing market evidence. What should the appraiser do?
A. Automatically use the sale because it is recent
B. Increase the comparable's price to the highest neighborhood sale
C. Investigate the transaction and determine whether it is sufficiently
arm's-length and representative of market behavior
D. Use the transaction without adjustment because family sales are always
valid
, A related-party transaction may not reflect market value, so the appraiser
must investigate the circumstances before determining whether the sale is
an appropriate comparable.
8. Which of the following is an example of a financing concession that
may require consideration in a residential sales comparison analysis?
A. The property's lot size
B. The age of the roof
C. The seller paying the buyer's closing costs
D. The number of bedrooms
Seller-paid closing costs are a form of concession that may cause the
reported sale price to differ from the price a buyer would have paid under
typical market terms.
9. A comparable sold for $300,000 with the seller providing $10,000
toward the buyer's closing costs. If the concession was above what is
typical in the market, what should the appraiser generally consider?
A. Adding $10,000 to the comparable's sale price
B. Ignoring the concession entirely
C. Adjusting the comparable to reflect the effect of the atypical concession
D. Automatically rejecting every comparable involving concessions
An atypical concession can artificially inflate the effective price paid for the
real estate, so the appraiser should analyze its market impact and make an
appropriate adjustment when supported by evidence.
10. Which principle states that a prudent buyer will not pay more
for a property than the cost of acquiring an equally desirable
substitute?
A. Principle of contribution
B. Principle of anticipation
C. Principle of substitution
D. Principle of conformity
