CERTIFIED PENNSYLVANIA EVALUATOR EXAM (CPE)
EXPECTED QUESTIONS WITH VERIFIED ANSWERS
Question 1.
GRM
ANSWER
Sale price/monthly rent
Question 2.
Reconciliation
ANSWER
Last step after considering all three approaches to value
Question 3.
escalation clause
ANSWER
helps landlord offset increases in operating expenses.
Question 4.
Deed
ANSWER
A written document under seal conveying real estate. Types: Warranty and Quit Claim
Question 5.
Indirect Costs
ANSWER
Other than labor and materials
AKA Soft Costs
Taxes, electricity, insurance, realtor fees, engineering fees and legal fees
,Question 6.
Comparable sales market approach
ANSWER
comparing similar properties sold in the recent past to the subject property
The four steps in this approach:
1. discovering and analyzing the data
2. selecting units of comparison
3. making adjustments based on the market
4. applying those adjustments to the subject
Question 7.
In determining value and assessor must consider what?
ANSWER
All three approaches to value
Question 8.
Market Value
ANSWER
The most probable price which a property should bring in a competitive and open market
under all conditions requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this
definition is the consummation of a sale as of a specified date and the passing of title from
seller to buyer whereby:
1. Buyer and seller are typically motivated
2. Both parties are well informed or well advised, and asking in what thy consider their best
interests
3. A reasonable time is allowed for exposure in the open market
4. Payment is made in terms of cash in United States dollars or in terms of financial
arrangements comparable thereto
5. The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale.
Question 9.
Trend
ANSWER
A series of changes that can be identified
,Question 10.
STEB must certify the CLR by?
ANSWER
July 1st
Question 11.
Principle of Progression and Regression
ANSWER
States that the values of properties with a lesser value are enhanced when associated with
properties of a greater value (progression) and values of properties of a greater value will
decrease when associated with properties of a lesser value (regression).
Question 12.
Income
ANSWER
Rate X Value
Question 13.
improvement on land
ANSWER
structures or buildings place or erected on the site
Question 14.
Escheat
ANSWER
The right to have property revert to the state for nonpayment of taxes or when there are no
legal heirs or a decedent who dies "intestate."
, Question 15.
Physical Forces
ANSWER
Location, size of the neighborhood, topography, appearance, size, shape and
lot area, street pattern, soil and subsoil conditions, drainage, hazards, climate, utilities,
conformity of house, proximity to supporting facilities, nuisances, waste disposal,
transportation and location of labor force
Question 16.
Overage Rent/ Percentage Rent
ANSWER
Extra rent received over and above the lease agreement for a basic contract rent. Normally,
this is an additional rent based on a percentage of gross business volume clause included in
the contract lease agreement
Question 17.
narrative appraisal
ANSWER
leads the reader through the process to a convincing estimate of value
Question 18.
Principle of Balance- Individual Property
ANSWER
Maximum market value is attained when the four agents of production attain a state of
equilibrium
1. Land
2.Labor
3.Capital
4.Management
Question 19.
How properties are identified
ANSWER
street address, legal description, and parcel number
EXPECTED QUESTIONS WITH VERIFIED ANSWERS
Question 1.
GRM
ANSWER
Sale price/monthly rent
Question 2.
Reconciliation
ANSWER
Last step after considering all three approaches to value
Question 3.
escalation clause
ANSWER
helps landlord offset increases in operating expenses.
Question 4.
Deed
ANSWER
A written document under seal conveying real estate. Types: Warranty and Quit Claim
Question 5.
Indirect Costs
ANSWER
Other than labor and materials
AKA Soft Costs
Taxes, electricity, insurance, realtor fees, engineering fees and legal fees
,Question 6.
Comparable sales market approach
ANSWER
comparing similar properties sold in the recent past to the subject property
The four steps in this approach:
1. discovering and analyzing the data
2. selecting units of comparison
3. making adjustments based on the market
4. applying those adjustments to the subject
Question 7.
In determining value and assessor must consider what?
ANSWER
All three approaches to value
Question 8.
Market Value
ANSWER
The most probable price which a property should bring in a competitive and open market
under all conditions requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this
definition is the consummation of a sale as of a specified date and the passing of title from
seller to buyer whereby:
1. Buyer and seller are typically motivated
2. Both parties are well informed or well advised, and asking in what thy consider their best
interests
3. A reasonable time is allowed for exposure in the open market
4. Payment is made in terms of cash in United States dollars or in terms of financial
arrangements comparable thereto
5. The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale.
Question 9.
Trend
ANSWER
A series of changes that can be identified
,Question 10.
STEB must certify the CLR by?
ANSWER
July 1st
Question 11.
Principle of Progression and Regression
ANSWER
States that the values of properties with a lesser value are enhanced when associated with
properties of a greater value (progression) and values of properties of a greater value will
decrease when associated with properties of a lesser value (regression).
Question 12.
Income
ANSWER
Rate X Value
Question 13.
improvement on land
ANSWER
structures or buildings place or erected on the site
Question 14.
Escheat
ANSWER
The right to have property revert to the state for nonpayment of taxes or when there are no
legal heirs or a decedent who dies "intestate."
, Question 15.
Physical Forces
ANSWER
Location, size of the neighborhood, topography, appearance, size, shape and
lot area, street pattern, soil and subsoil conditions, drainage, hazards, climate, utilities,
conformity of house, proximity to supporting facilities, nuisances, waste disposal,
transportation and location of labor force
Question 16.
Overage Rent/ Percentage Rent
ANSWER
Extra rent received over and above the lease agreement for a basic contract rent. Normally,
this is an additional rent based on a percentage of gross business volume clause included in
the contract lease agreement
Question 17.
narrative appraisal
ANSWER
leads the reader through the process to a convincing estimate of value
Question 18.
Principle of Balance- Individual Property
ANSWER
Maximum market value is attained when the four agents of production attain a state of
equilibrium
1. Land
2.Labor
3.Capital
4.Management
Question 19.
How properties are identified
ANSWER
street address, legal description, and parcel number
