BASIC APPRAISAL PROCEDURES 2024 UPDATE ACTUAL
EXAM QUESTIONS AND VERIFIED ANSWERS
When developing an appraisal, you calculate the following GRMs for comparable properties:
94.3, 90.1, 95.6, 109.2, 84.5, 100.7, 99.9. What is the mean of the GRMs? - CORRECT
ANSWER✅✅✅96.3
"The process of valuing a universe of properties as of a given date using standard methodology,
employing common data, and allowing for statistical testing" is the definition of - CORRECT
ANSWER✅✅✅mass appraisal
What is the most common type of framing currently being used in new homes? - CORRECT
ANSWER✅✅✅platform frame
Fannie Mae requires a single-unit residential appraisal report to include photographs of -
CORRECT ANSWER✅✅✅the subject property and the comparable sales
When measuring a condominium you should calculate ____ using _______ measurements. -
CORRECT ANSWER✅✅✅GLA, interior
A parcel is valued at $450,000 as a single unit. Zoning allows it to be subdivided into 8 lots and
it is estimated that each lot could sell for $70,000. Site development costs (sewer, grading, road,
etc.) would cost $65,000. What is the highest and best use? - CORRECT
ANSWER✅✅✅subdivide it
An appraiser encounters an underground storage tank and there are no signs of leakage or failure.
An appraisal could be performed under the presumption that the tank is not leaking and the
property is not contaminated. This would be an example of a(n) - CORRECT
ANSWER✅✅✅extraordinary assumption
A deed could provide all of the following information about a property EXCEPT
owner of record
,easements
deed restrictions
zoning - CORRECT ANSWER✅✅✅zoning
You examine a construction contract to build a 2,448 square foot house and the total cost is
$197,450. What was the cost per square foot? - CORRECT ANSWER✅✅✅$80.66
Which would NOT be an appropriate legal description of a subject property?
postal address
metes and bounds description
rectangular survey description
lot and block description - CORRECT ANSWER✅✅✅postal address
You calculate the following gross rent multipliers for comparable properties: 121.2, 105.3, 111.2,
150.1, 108.3, 105.3, 109.8, 108.8. What is the median of the GRMs? - CORRECT
ANSWER✅✅✅109.3
Which of the following would NOT be a common adjustment when appraising land?
size
quality
shape
topography - CORRECT ANSWER✅✅✅quality
Possible Adjustments. The other three are common adjustments, but quality adjustments would
be made to improvements - not land.
The most common brownfield contaminant is - CORRECT ANSWER✅✅✅petroleum
, "The actual or anticipated net income that remains after all operating expenses are deducted from
effective gross income but before mortgage debt service and book depreciation are deducted" is
the definition of - CORRECT ANSWER✅✅✅net operating income
Which cost estimating method is the most detailed and time-consuming to develop?
comparative-unit
quantity survey
unit-in-place
index - CORRECT ANSWER✅✅✅quantity survey
The most common unit of comparison for land in rural areas is price per _______. - CORRECT
ANSWER✅✅✅acre
A house is rented for $1,050 per month, but lacks air conditioning. Comparable houses with air
conditioning, rent for $1,100 per month. The appropriate gross rent multiplier is 75. By the
capitalized value method, how much is the depreciation attributable to the lack of air
conditioning? - CORRECT ANSWER✅✅✅$3,750
Capitalization of Income Loss. $1,100 - $1,050 = $50 rent loss. $50 X 75 = $3,750.
A factory-built house constructed in compliance with the HUD code is _________ home. -
CORRECT ANSWER✅✅✅manufactured
A house is rented for $1,050 per month, but lacks air conditioning. Comparable houses with air
conditioning rent for $1,100 per month. The appropriate gross rent multiplier is 85. By the
capitalized value method, how much is the depreciation attributable to the lack of air
conditioning? - CORRECT ANSWER✅✅✅$4,250
Capitalization of Income Loss. $1,100 - $1,050 = $50 rent loss. $50 X 85 = $4,250.
EXAM QUESTIONS AND VERIFIED ANSWERS
When developing an appraisal, you calculate the following GRMs for comparable properties:
94.3, 90.1, 95.6, 109.2, 84.5, 100.7, 99.9. What is the mean of the GRMs? - CORRECT
ANSWER✅✅✅96.3
"The process of valuing a universe of properties as of a given date using standard methodology,
employing common data, and allowing for statistical testing" is the definition of - CORRECT
ANSWER✅✅✅mass appraisal
What is the most common type of framing currently being used in new homes? - CORRECT
ANSWER✅✅✅platform frame
Fannie Mae requires a single-unit residential appraisal report to include photographs of -
CORRECT ANSWER✅✅✅the subject property and the comparable sales
When measuring a condominium you should calculate ____ using _______ measurements. -
CORRECT ANSWER✅✅✅GLA, interior
A parcel is valued at $450,000 as a single unit. Zoning allows it to be subdivided into 8 lots and
it is estimated that each lot could sell for $70,000. Site development costs (sewer, grading, road,
etc.) would cost $65,000. What is the highest and best use? - CORRECT
ANSWER✅✅✅subdivide it
An appraiser encounters an underground storage tank and there are no signs of leakage or failure.
An appraisal could be performed under the presumption that the tank is not leaking and the
property is not contaminated. This would be an example of a(n) - CORRECT
ANSWER✅✅✅extraordinary assumption
A deed could provide all of the following information about a property EXCEPT
owner of record
,easements
deed restrictions
zoning - CORRECT ANSWER✅✅✅zoning
You examine a construction contract to build a 2,448 square foot house and the total cost is
$197,450. What was the cost per square foot? - CORRECT ANSWER✅✅✅$80.66
Which would NOT be an appropriate legal description of a subject property?
postal address
metes and bounds description
rectangular survey description
lot and block description - CORRECT ANSWER✅✅✅postal address
You calculate the following gross rent multipliers for comparable properties: 121.2, 105.3, 111.2,
150.1, 108.3, 105.3, 109.8, 108.8. What is the median of the GRMs? - CORRECT
ANSWER✅✅✅109.3
Which of the following would NOT be a common adjustment when appraising land?
size
quality
shape
topography - CORRECT ANSWER✅✅✅quality
Possible Adjustments. The other three are common adjustments, but quality adjustments would
be made to improvements - not land.
The most common brownfield contaminant is - CORRECT ANSWER✅✅✅petroleum
, "The actual or anticipated net income that remains after all operating expenses are deducted from
effective gross income but before mortgage debt service and book depreciation are deducted" is
the definition of - CORRECT ANSWER✅✅✅net operating income
Which cost estimating method is the most detailed and time-consuming to develop?
comparative-unit
quantity survey
unit-in-place
index - CORRECT ANSWER✅✅✅quantity survey
The most common unit of comparison for land in rural areas is price per _______. - CORRECT
ANSWER✅✅✅acre
A house is rented for $1,050 per month, but lacks air conditioning. Comparable houses with air
conditioning, rent for $1,100 per month. The appropriate gross rent multiplier is 75. By the
capitalized value method, how much is the depreciation attributable to the lack of air
conditioning? - CORRECT ANSWER✅✅✅$3,750
Capitalization of Income Loss. $1,100 - $1,050 = $50 rent loss. $50 X 75 = $3,750.
A factory-built house constructed in compliance with the HUD code is _________ home. -
CORRECT ANSWER✅✅✅manufactured
A house is rented for $1,050 per month, but lacks air conditioning. Comparable houses with air
conditioning rent for $1,100 per month. The appropriate gross rent multiplier is 85. By the
capitalized value method, how much is the depreciation attributable to the lack of air
conditioning? - CORRECT ANSWER✅✅✅$4,250
Capitalization of Income Loss. $1,100 - $1,050 = $50 rent loss. $50 X 85 = $4,250.
