Appraisal Methods, Real Estate Exam questions with correct answers

An appraiser is using the market data approach comparing the prices of comparable properties to the subject property. If the comparable properties have a feature that is not present in the subject property, the value of that feature will be: CORRECT ANSWER Subtracted from the sales price of the comparables The hardest and yet the most important part of the market data method of appraising is: CORRECT ANSWER Adjusting for the differences between the comparable properties and the subject property Rental schedules for various units of space are realistically established on what basis: CORRECT ANSWER Market comparison A final estimate of the value of any single-family residence is: CORRECT ANSWER Limited by the replacement cost of the building, plus the value of the land Capitalization: CORRECT ANSWER Establishes the value of an asset by dividing the annual net income by the desirable rate of return. To arrive at a capitalization rate in the appraisal of an income- producing property, no provision should be made for which of the following: CORRECT ANSWER Federal taxes In using the capitalization process, which of the following cannot be deducted to determine the net income?: CORRECT ANSWER Mortgage interest