Exam Prep (McKissock) Questions and
Answers 100% Solved
An appraiser is valuing a small apartment building. The appraiser gathers information on
demographics and employment trends, which is useful in analyzing the market. This would be
considered what type of data? General Data
The appraisal development process and appraisal reporting process are considered to be one
function. False
In the appraisal process, what type of data pertains only to the subject property and comparables?
Specific Data
Dave is completing a market value appraisal on an office building. Which statement will most
likely be TRUE regarding his highest and best use analysis? He will have to develop two
highest and best use opinions.
What is the most profitable use to which a property can be put? Highest and best use
,When considering legal permissibility and current land use regulations, an appraiser must also
consider __________. Reasonably probable modifications of land use regulations
Margot is appraising a vacant site which is suitable for commercial development. In selecting
comparable sales, what would likely be her most important consideration? Sales should
have the same highest and best use
A property is improved with a building, and is valued at $425,000. It would cost $50,000 to raze
and remove the building, and the value of the vacant site would be $500,000. Under this
scenario, razing and removing the building would be considered ____________.
Financially feasible
An appraiser takes secondary data on a sale from the local MLS, and personally verifies elements
of the transaction and the physical characteristics of the property with the purchaser. This sale
would now be considered what type of data? Primary Data
A building owner installs a new "green" roof on the structure at a cost of $300,000. The value of
the building only increases by $200,000 as a result of the new roof. This demonstrates which
economic principle? Contribution
,Value is a fact, or an estimate of fact. False
The Concentric Zone Model includes which zones? Commuter, residential, working class,
transition, factory, Loop or Central Business District
Which statement is FALSE regarding the sales comparison approach? When the appraiser
has an understanding of value influences in the market, the approach is more reliable.
Cyndi contacts the buyer and verifies that a comparable sale she is using was purchased on the
open market, between a typically-motivated seller and buyer, who were not related to each other.
What type of sale is this? Arm's length transfer
What is the primary purpose of the sales comparison approach? To arrive at a value
indication for the subject property
The sales comparison approach is primarily based on what principle? Substitution
A property being appraised has a debt coverage ratio of 1.1. What does this mean? The
property generates enough income to make the mortgage payment.
, Peggy blackmails Frank into selling his property to her. The sale appears in the local MLS and is
reported in the local assessment office as a valid sale. Is this an arm's length transfer? No
The sales comparison approach is most effective when the subject and comparable sales all have
the same potential highest and best use. True
What helps appraisers understand and apply accurate analysis in the evaluation of real estate?
Statistical techniques
The empirical rule states that in a bell-shaped curve, what percentage of observations will fall
within two standard deviations of the mean? 95
Measures of central tendency include all of the following EXCEPT: Variance
What is the principle which holds that in a bell-shaped curve, 68% of the observations will fall
within one standard deviation of the mean? Empirical rule
What is the foundation of statistical analysis? Accurate data
Answers 100% Solved
An appraiser is valuing a small apartment building. The appraiser gathers information on
demographics and employment trends, which is useful in analyzing the market. This would be
considered what type of data? General Data
The appraisal development process and appraisal reporting process are considered to be one
function. False
In the appraisal process, what type of data pertains only to the subject property and comparables?
Specific Data
Dave is completing a market value appraisal on an office building. Which statement will most
likely be TRUE regarding his highest and best use analysis? He will have to develop two
highest and best use opinions.
What is the most profitable use to which a property can be put? Highest and best use
,When considering legal permissibility and current land use regulations, an appraiser must also
consider __________. Reasonably probable modifications of land use regulations
Margot is appraising a vacant site which is suitable for commercial development. In selecting
comparable sales, what would likely be her most important consideration? Sales should
have the same highest and best use
A property is improved with a building, and is valued at $425,000. It would cost $50,000 to raze
and remove the building, and the value of the vacant site would be $500,000. Under this
scenario, razing and removing the building would be considered ____________.
Financially feasible
An appraiser takes secondary data on a sale from the local MLS, and personally verifies elements
of the transaction and the physical characteristics of the property with the purchaser. This sale
would now be considered what type of data? Primary Data
A building owner installs a new "green" roof on the structure at a cost of $300,000. The value of
the building only increases by $200,000 as a result of the new roof. This demonstrates which
economic principle? Contribution
,Value is a fact, or an estimate of fact. False
The Concentric Zone Model includes which zones? Commuter, residential, working class,
transition, factory, Loop or Central Business District
Which statement is FALSE regarding the sales comparison approach? When the appraiser
has an understanding of value influences in the market, the approach is more reliable.
Cyndi contacts the buyer and verifies that a comparable sale she is using was purchased on the
open market, between a typically-motivated seller and buyer, who were not related to each other.
What type of sale is this? Arm's length transfer
What is the primary purpose of the sales comparison approach? To arrive at a value
indication for the subject property
The sales comparison approach is primarily based on what principle? Substitution
A property being appraised has a debt coverage ratio of 1.1. What does this mean? The
property generates enough income to make the mortgage payment.
, Peggy blackmails Frank into selling his property to her. The sale appears in the local MLS and is
reported in the local assessment office as a valid sale. Is this an arm's length transfer? No
The sales comparison approach is most effective when the subject and comparable sales all have
the same potential highest and best use. True
What helps appraisers understand and apply accurate analysis in the evaluation of real estate?
Statistical techniques
The empirical rule states that in a bell-shaped curve, what percentage of observations will fall
within two standard deviations of the mean? 95
Measures of central tendency include all of the following EXCEPT: Variance
What is the principle which holds that in a bell-shaped curve, 68% of the observations will fall
within one standard deviation of the mean? Empirical rule
What is the foundation of statistical analysis? Accurate data
