CE Shop Course 3 Minnesota Exam
Questions and Answers
The statistical mode is determined by which of these methods? - Answer -Find the value
in the data set that occurs most often
For which of the following categories of adjustment are you most likely to see a dollar
adjustment instead of a percentage adjustment? - Answer -Physical features
How is net operating income used in an income-based approach to appraisal? - Answer
-NOI is divided by a cap rate to find estimated property value.
A ______ is a professional on-site measurement of lot lines, dimensions, and elements
of a property. - Answer -Survey
Licensee Randy is reviewing this month's data about the percentage of all types homes
within the city limits that are currently listed for sale. This data is best presented using a
_ - Answer -Pie chart
In the third step of the market extraction method, an appraiser calculates the
depreciation rate for a comparable property by - Answer -Dividing the dollar amount of
depreciation by the reproduction cost
You're the listing agent for the Andersons and their property has been the subject of a
bidding war. The contracted sales price with the winning bidder is $50,000 above list
price. What primary risk do the parties face? - Answer -Lower appraisal
The appraiser applies a capitalization rate to an income comparison of similar properties
with which of the four methods used to measure depreciation? - Answer -Capitalized
value
The idea that money gains or loses value over time describes which concept? - Answer
-Time value of money
What type of windows have a similar design to Venetian blinds? - Answer -Jalousie
In the Improvements section of the Uniform Residential Appraisal Report, an appraiser
uses which of the following to rate the overall condition of the property, as well as the
, material and conditions of the exterior and interior of the building? - Answer -A scale of
C1-C6
Capitalization is the process of converting ______ to value. - Answer -Income
Which material covers the joints between walls and ceilings? - Answer -Trim
Which line item in the Cost Approach section in the URAR form is used to capture the
appraiser's total cost estimate for either reproducing or replacing the structures on the
property prior to subtracting the accrued depreciation costs? - Answer -Total Estimate of
Cost-New
What type of water heater provides hot water "on demand - Answer -Tankless
A fixed annual return on an investment is known as a(n) - Answer -Annuity
For which of the following purchase-related appraisals must the Appraiser
Independence Requirements be followed? - Answer -A conventional loan on a four-unit
residential property
Which of the four methods used to find a structure's reproduction cost is considered the
most comprehensive and accurate? - Answer -Quantity survey
Which of the following statements applies to reproduction cost? - Answer -The same
materials and technique that went into constructing the subject property must be used
as part of the analysis.
In the second step of the appraisal process, the appraiser identifies the data needed.
What's another term used to describe this step? - Answer -Determine the scope of work
______ real property appraiser is allowed to perform appraisals on any type of real
estate. - Answer -A certified general
Jerome, a licensee who just sold a property in a popular neighborhood, groaned when
he opened his email. "Two more emails from appraisers asking about the terms of the
sale!" What might have helped Jerome avoid some of these requests? - Answer -
Provided terms of sale on the MLS listing after closing
An office building has a potential gross income of $900,000. The appraiser determines
that a vacancy and collection loss of 20% should be used. What calculation will find the
effective gross income for this property? - Answer -$900,000 - (900,000 × .20)
When appraising manufactured homes, it's recommended that appraisers look for the
HUD label and ensure that a manufactured home meets ______ size requirements. -
Answer -FHA
Questions and Answers
The statistical mode is determined by which of these methods? - Answer -Find the value
in the data set that occurs most often
For which of the following categories of adjustment are you most likely to see a dollar
adjustment instead of a percentage adjustment? - Answer -Physical features
How is net operating income used in an income-based approach to appraisal? - Answer
-NOI is divided by a cap rate to find estimated property value.
A ______ is a professional on-site measurement of lot lines, dimensions, and elements
of a property. - Answer -Survey
Licensee Randy is reviewing this month's data about the percentage of all types homes
within the city limits that are currently listed for sale. This data is best presented using a
_ - Answer -Pie chart
In the third step of the market extraction method, an appraiser calculates the
depreciation rate for a comparable property by - Answer -Dividing the dollar amount of
depreciation by the reproduction cost
You're the listing agent for the Andersons and their property has been the subject of a
bidding war. The contracted sales price with the winning bidder is $50,000 above list
price. What primary risk do the parties face? - Answer -Lower appraisal
The appraiser applies a capitalization rate to an income comparison of similar properties
with which of the four methods used to measure depreciation? - Answer -Capitalized
value
The idea that money gains or loses value over time describes which concept? - Answer
-Time value of money
What type of windows have a similar design to Venetian blinds? - Answer -Jalousie
In the Improvements section of the Uniform Residential Appraisal Report, an appraiser
uses which of the following to rate the overall condition of the property, as well as the
, material and conditions of the exterior and interior of the building? - Answer -A scale of
C1-C6
Capitalization is the process of converting ______ to value. - Answer -Income
Which material covers the joints between walls and ceilings? - Answer -Trim
Which line item in the Cost Approach section in the URAR form is used to capture the
appraiser's total cost estimate for either reproducing or replacing the structures on the
property prior to subtracting the accrued depreciation costs? - Answer -Total Estimate of
Cost-New
What type of water heater provides hot water "on demand - Answer -Tankless
A fixed annual return on an investment is known as a(n) - Answer -Annuity
For which of the following purchase-related appraisals must the Appraiser
Independence Requirements be followed? - Answer -A conventional loan on a four-unit
residential property
Which of the four methods used to find a structure's reproduction cost is considered the
most comprehensive and accurate? - Answer -Quantity survey
Which of the following statements applies to reproduction cost? - Answer -The same
materials and technique that went into constructing the subject property must be used
as part of the analysis.
In the second step of the appraisal process, the appraiser identifies the data needed.
What's another term used to describe this step? - Answer -Determine the scope of work
______ real property appraiser is allowed to perform appraisals on any type of real
estate. - Answer -A certified general
Jerome, a licensee who just sold a property in a popular neighborhood, groaned when
he opened his email. "Two more emails from appraisers asking about the terms of the
sale!" What might have helped Jerome avoid some of these requests? - Answer -
Provided terms of sale on the MLS listing after closing
An office building has a potential gross income of $900,000. The appraiser determines
that a vacancy and collection loss of 20% should be used. What calculation will find the
effective gross income for this property? - Answer -$900,000 - (900,000 × .20)
When appraising manufactured homes, it's recommended that appraisers look for the
HUD label and ensure that a manufactured home meets ______ size requirements. -
Answer -FHA
