Real Estate Appraisal Exam Test Questions with Verified Answers
1. If land is leased, which ap- Income approach
proach is the most reliable?
2. comparative unit method is the least detailed - takes total cost, divides
it by square feet
3. segregated cost method breaks it down by materials
4. unit in place whole wall as a unit or section
5. quantity survey most detailed
6. What are the four methods comparative unit method, segregated cost
of estimating cost? method, unit in place method, quantity survey
method
7. Value = (Sales Price)/NOI
8. Indicated cost (New Cost of Improvements) - (Depreciation)
+ (Land Value)
9. What are the limitations of Cannot be used if lack of recent sales, un-
using the sales comparison similar properties, unverifiable data, change in
approach? conditions
10. On which appraisal princi- Substitution, supply and demand
ples is the sales comparison
approach primarily based?
11. What is an appropriate unit Price per unit
of comparison for apart-
ments?
12. What is an appropriate unit Price per seat
of comparison for theaters?
13. What income units can be PGIM, EGIM, GRM, NIM
used to compare properties
in the sales comparison ap-
proach
1/4
1. If land is leased, which ap- Income approach
proach is the most reliable?
2. comparative unit method is the least detailed - takes total cost, divides
it by square feet
3. segregated cost method breaks it down by materials
4. unit in place whole wall as a unit or section
5. quantity survey most detailed
6. What are the four methods comparative unit method, segregated cost
of estimating cost? method, unit in place method, quantity survey
method
7. Value = (Sales Price)/NOI
8. Indicated cost (New Cost of Improvements) - (Depreciation)
+ (Land Value)
9. What are the limitations of Cannot be used if lack of recent sales, un-
using the sales comparison similar properties, unverifiable data, change in
approach? conditions
10. On which appraisal princi- Substitution, supply and demand
ples is the sales comparison
approach primarily based?
11. What is an appropriate unit Price per unit
of comparison for apart-
ments?
12. What is an appropriate unit Price per seat
of comparison for theaters?
13. What income units can be PGIM, EGIM, GRM, NIM
used to compare properties
in the sales comparison ap-
proach
1/4
