BASIC APPRAISAL PROCEDURES ACTUAL EXAM
QUESTIONS AND VERIFIED ANSWERS
- CORRECT ANSWER✅✅✅An entrepreneur is taking on a development project, and by his
calculations, he expects to receive a 25% return on his investment in the project. This 25% figure
represents
$252,000 - CORRECT ANSWER✅✅✅The subject is a 15 year old duplex that would cost
$240,000 to build new today. It is in good condition and you estimate the effective age to be 10
years. Your estimate of total economic life is 50 years. Its land value is $60,000. What is its
value by the cost approach?
leave it as one parcel - CORRECT ANSWER✅✅✅A single parcel is valued at $450,000.
Zoning allows it to be subdivided into 8 lots and it is estimated that each lot could sell for
$50,000. Site development costs (sewer, grading, road, etc.) would cost $50,000. What is the
highest and best use?
2-4 unit residential properties - CORRECT ANSWER✅✅✅Price per room is a common unit
of comparison when appraising
96.3 - CORRECT ANSWER✅✅✅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?
gross income multiplier - CORRECT ANSWER✅✅✅"The relationship or ratio between the
sale price or value of a property and its gross annual rental income" is the definition of
direct - CORRECT ANSWER✅✅✅Building permits and worker's compensation are
examples of __________costs.
guaranteed - CORRECT ANSWER✅✅✅A mortgage in which a party other than the
borrower assumes payment in the event of default is a(n) _____________ mortgage.
, conductors, insulators - CORRECT ANSWER✅✅✅Materials that transfer energy quickly
are called __________ and those that transfer energy slowly are called __________.
+$10,000 - CORRECT ANSWER✅✅✅In your sales grid, you made adjustments of
+$5,000, +$3,500, -$2,500, + $8,000, and -$4,000. What is your net adjustment?
$1,984 - CORRECT ANSWER✅✅✅A municipality assesses property at 100% of value. If a
property is assessed at $155,000 and the rate per thousand is $12.80, how much are total property
taxes?
both general and specific data - CORRECT ANSWER✅✅✅Multiple listing services can be
utilized for gathering _______________.
deferred maintenance - CORRECT ANSWER✅✅✅Functional obsolescence could be
caused by all of the following EXCEPT
NAHB - CORRECT ANSWER✅✅✅Extensive research on current construction trends and
figures is conducted by
comparative-unit - CORRECT ANSWER✅✅✅The cost estimating method most commonly
used by residential appraisers is the ____________ method.
GLA, interior - CORRECT ANSWER✅✅✅When measuring a condominium you should
calculate ____ using _______ measurements.
availability of utilities - CORRECT ANSWER✅✅✅A deed could provide all of the
following information about a property EXCEPT
casing, bedrock - CORRECT ANSWER✅✅✅Drilled wells need to use __________ until
the drilling enters ___________.
QUESTIONS AND VERIFIED ANSWERS
- CORRECT ANSWER✅✅✅An entrepreneur is taking on a development project, and by his
calculations, he expects to receive a 25% return on his investment in the project. This 25% figure
represents
$252,000 - CORRECT ANSWER✅✅✅The subject is a 15 year old duplex that would cost
$240,000 to build new today. It is in good condition and you estimate the effective age to be 10
years. Your estimate of total economic life is 50 years. Its land value is $60,000. What is its
value by the cost approach?
leave it as one parcel - CORRECT ANSWER✅✅✅A single parcel is valued at $450,000.
Zoning allows it to be subdivided into 8 lots and it is estimated that each lot could sell for
$50,000. Site development costs (sewer, grading, road, etc.) would cost $50,000. What is the
highest and best use?
2-4 unit residential properties - CORRECT ANSWER✅✅✅Price per room is a common unit
of comparison when appraising
96.3 - CORRECT ANSWER✅✅✅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?
gross income multiplier - CORRECT ANSWER✅✅✅"The relationship or ratio between the
sale price or value of a property and its gross annual rental income" is the definition of
direct - CORRECT ANSWER✅✅✅Building permits and worker's compensation are
examples of __________costs.
guaranteed - CORRECT ANSWER✅✅✅A mortgage in which a party other than the
borrower assumes payment in the event of default is a(n) _____________ mortgage.
, conductors, insulators - CORRECT ANSWER✅✅✅Materials that transfer energy quickly
are called __________ and those that transfer energy slowly are called __________.
+$10,000 - CORRECT ANSWER✅✅✅In your sales grid, you made adjustments of
+$5,000, +$3,500, -$2,500, + $8,000, and -$4,000. What is your net adjustment?
$1,984 - CORRECT ANSWER✅✅✅A municipality assesses property at 100% of value. If a
property is assessed at $155,000 and the rate per thousand is $12.80, how much are total property
taxes?
both general and specific data - CORRECT ANSWER✅✅✅Multiple listing services can be
utilized for gathering _______________.
deferred maintenance - CORRECT ANSWER✅✅✅Functional obsolescence could be
caused by all of the following EXCEPT
NAHB - CORRECT ANSWER✅✅✅Extensive research on current construction trends and
figures is conducted by
comparative-unit - CORRECT ANSWER✅✅✅The cost estimating method most commonly
used by residential appraisers is the ____________ method.
GLA, interior - CORRECT ANSWER✅✅✅When measuring a condominium you should
calculate ____ using _______ measurements.
availability of utilities - CORRECT ANSWER✅✅✅A deed could provide all of the
following information about a property EXCEPT
casing, bedrock - CORRECT ANSWER✅✅✅Drilled wells need to use __________ until
the drilling enters ___________.
