Appraisal Exam Practice UPDATED
ACTUAL Questions and CORRECT
Answers
The opinion of value in an appraisal report is valid - CORRECT ANSWER - as of the
effective date of the appraisal only
An appraisal report is NOT required to include - CORRECT ANSWER - The contract price of
the property
Which value approach would most likely be emphasized for an apartment building in an
established neighborhood? - CORRECT ANSWER - Income approach
A vacant land parcel described as the NE 1/4 of section 17 is selling for $1,200 per acre. What is
the sale price of the parcel? - CORRECT ANSWER - $192,000
Market value is - CORRECT ANSWER - The most probable selling price to a typical buyer
Market price is the - CORRECT ANSWER - amount, in dollars, actually paid for the property
The cost approach does NOT require an estimate of - CORRECT ANSWER - Net operating
income
When using the income approach, appraisers do NOT assume that - CORRECT ANSWER -
Future income is always more valuable than present income
Using the information in the following table, calculate depreciation using the age-life method.
Replacement cost-$173,000
Effective age-15 years
, Remaining economic life-60 years - CORRECT ANSWER - $34,600
The single most important value factor is - CORRECT ANSWER - Location
Which characteristics create value in real estate? - CORRECT ANSWER - Scarcity and utility
The four broad forces which affect value are - CORRECT ANSWER - Economic,
governmental, social, and physical
A neighborhood's life cycle is an example of - CORRECT ANSWER - Change
In analyzing a vacant size to estimate its value, the first step is to determine - CORRECT
ANSWER - Its highest and best use
If a developer purchased a lot measuring 348' x 1,000' and the sale price was $5,000 per acre,
how much did the developer pay? - CORRECT ANSWER - $39,945
The data required for a site analysis includes
a. economic characteristics of the neighborhood and community
b. physical characteristics of the site
c. zoning information
d. all of the above - CORRECT ANSWER - All of the above
Prior to inspecting the site, an appraiser should obtain information on the
a. size and shape of the parcel
b. utilities and soil type
c. zoning and easements
d. all of the above - CORRECT ANSWER - All of the above
ACTUAL Questions and CORRECT
Answers
The opinion of value in an appraisal report is valid - CORRECT ANSWER - as of the
effective date of the appraisal only
An appraisal report is NOT required to include - CORRECT ANSWER - The contract price of
the property
Which value approach would most likely be emphasized for an apartment building in an
established neighborhood? - CORRECT ANSWER - Income approach
A vacant land parcel described as the NE 1/4 of section 17 is selling for $1,200 per acre. What is
the sale price of the parcel? - CORRECT ANSWER - $192,000
Market value is - CORRECT ANSWER - The most probable selling price to a typical buyer
Market price is the - CORRECT ANSWER - amount, in dollars, actually paid for the property
The cost approach does NOT require an estimate of - CORRECT ANSWER - Net operating
income
When using the income approach, appraisers do NOT assume that - CORRECT ANSWER -
Future income is always more valuable than present income
Using the information in the following table, calculate depreciation using the age-life method.
Replacement cost-$173,000
Effective age-15 years
, Remaining economic life-60 years - CORRECT ANSWER - $34,600
The single most important value factor is - CORRECT ANSWER - Location
Which characteristics create value in real estate? - CORRECT ANSWER - Scarcity and utility
The four broad forces which affect value are - CORRECT ANSWER - Economic,
governmental, social, and physical
A neighborhood's life cycle is an example of - CORRECT ANSWER - Change
In analyzing a vacant size to estimate its value, the first step is to determine - CORRECT
ANSWER - Its highest and best use
If a developer purchased a lot measuring 348' x 1,000' and the sale price was $5,000 per acre,
how much did the developer pay? - CORRECT ANSWER - $39,945
The data required for a site analysis includes
a. economic characteristics of the neighborhood and community
b. physical characteristics of the site
c. zoning information
d. all of the above - CORRECT ANSWER - All of the above
Prior to inspecting the site, an appraiser should obtain information on the
a. size and shape of the parcel
b. utilities and soil type
c. zoning and easements
d. all of the above - CORRECT ANSWER - All of the above
