SCMIC Property EXAM QUESTIONS
AND ANSWERS NEWEST RATED A+
2026 UPDATED NEW!! 100%
VERIFIED CORRECT
SCMIC Property Exam: 100 Questions & Answers
1. What is the highest and best use of a property?
A) The use that generates the most income.
B) The use that is legally permitted by zoning.
C) The most profitable, legally permissible, physically possible, and financially
feasible use.
D) The current use of the property.
2. The process of valuing a property by analyzing the sales prices of similar
properties is called the:
A) Income Approach
B) Cost Approach
C) Sales Comparison Approach
D) Gross Rent Multiplier Approach
3. In the Sales Comparison Approach, an adjustment is made to the
comparable property when:
A) The subject property is superior to the comparable.
B) The comparable property is superior to the subject.
C) The properties are identical.
D) Both A and B are correct.
4. A property's value is $300,000. The land value is $60,000. What is the
depreciated value of the improvements?
A) $240,000
B) $360,000
,C) $60,000
D) $300,000
5. Functional obsolescence could be caused by:
A) A leaky roof.
B) Peeling paint.
C) A poor floor plan.
D) A decline in the neighborhood.
6. An appraiser is estimating the value of a 20-unit apartment building. Which
approach is most relevant?
A) Cost Approach
B) Sales Comparison Approach
C) Income Approach
D) All are equally relevant.
7. The Gross Rent Multiplier (GRM) is calculated as:
A) Sales Price / Annual Gross Income
B) Net Operating Income / Capitalization Rate
C) Annual Gross Income / Sales Price
D) Effective Gross Income / Sales Price
8. A comparable property sold for $400,000 and has a monthly rent of $2,500.
What is its GRM?
A) 100
B) 160
C) 10
D) 16
*(Calculation: $400,000 / ($2,500 x 12) = 160)*
9. A property has a net operating income (NOI) of $50,000 and a capitalization
rate of 8%. What is its value via the Income Approach?
A) $400,000
B) $625,000
C) $4,000,000
, D) $58,000
*(Calculation: Value = NOI / Cap Rate = $50,.08 = $625,000)*
10. "Curable" depreciation refers to an item where:
A) The cost to cure is less than or equal to the value added.
B) The item is physically deteriorating.
C) The cost to cure is more than the value added.
D) It is caused by external factors.
11. What type of value is typically estimated for a standard real estate
appraisal for mortgage lending purposes?
A) Market Value
B) Assessed Value
C) Insurance Value
D) Investment Value
12. The principle that states value is created by the expectation of future
benefits is:
A) Substitution
B) Anticipation
C) Contribution
D) Conformity
13. An easement that benefits a particular parcel of land is known as:
A) An easement in gross
B) A license
C) An appurtenant easement
D) A prescriptive easement
14. A life estate conveys ownership for:
A) The life of the grantee.
B) 99 years.
C) As long as the property is maintained.
D) The life of the grantor.
15. A legal description that uses monuments, angles, and distances is a:
A) Rectangular Survey System
AND ANSWERS NEWEST RATED A+
2026 UPDATED NEW!! 100%
VERIFIED CORRECT
SCMIC Property Exam: 100 Questions & Answers
1. What is the highest and best use of a property?
A) The use that generates the most income.
B) The use that is legally permitted by zoning.
C) The most profitable, legally permissible, physically possible, and financially
feasible use.
D) The current use of the property.
2. The process of valuing a property by analyzing the sales prices of similar
properties is called the:
A) Income Approach
B) Cost Approach
C) Sales Comparison Approach
D) Gross Rent Multiplier Approach
3. In the Sales Comparison Approach, an adjustment is made to the
comparable property when:
A) The subject property is superior to the comparable.
B) The comparable property is superior to the subject.
C) The properties are identical.
D) Both A and B are correct.
4. A property's value is $300,000. The land value is $60,000. What is the
depreciated value of the improvements?
A) $240,000
B) $360,000
,C) $60,000
D) $300,000
5. Functional obsolescence could be caused by:
A) A leaky roof.
B) Peeling paint.
C) A poor floor plan.
D) A decline in the neighborhood.
6. An appraiser is estimating the value of a 20-unit apartment building. Which
approach is most relevant?
A) Cost Approach
B) Sales Comparison Approach
C) Income Approach
D) All are equally relevant.
7. The Gross Rent Multiplier (GRM) is calculated as:
A) Sales Price / Annual Gross Income
B) Net Operating Income / Capitalization Rate
C) Annual Gross Income / Sales Price
D) Effective Gross Income / Sales Price
8. A comparable property sold for $400,000 and has a monthly rent of $2,500.
What is its GRM?
A) 100
B) 160
C) 10
D) 16
*(Calculation: $400,000 / ($2,500 x 12) = 160)*
9. A property has a net operating income (NOI) of $50,000 and a capitalization
rate of 8%. What is its value via the Income Approach?
A) $400,000
B) $625,000
C) $4,000,000
, D) $58,000
*(Calculation: Value = NOI / Cap Rate = $50,.08 = $625,000)*
10. "Curable" depreciation refers to an item where:
A) The cost to cure is less than or equal to the value added.
B) The item is physically deteriorating.
C) The cost to cure is more than the value added.
D) It is caused by external factors.
11. What type of value is typically estimated for a standard real estate
appraisal for mortgage lending purposes?
A) Market Value
B) Assessed Value
C) Insurance Value
D) Investment Value
12. The principle that states value is created by the expectation of future
benefits is:
A) Substitution
B) Anticipation
C) Contribution
D) Conformity
13. An easement that benefits a particular parcel of land is known as:
A) An easement in gross
B) A license
C) An appurtenant easement
D) A prescriptive easement
14. A life estate conveys ownership for:
A) The life of the grantee.
B) 99 years.
C) As long as the property is maintained.
D) The life of the grantor.
15. A legal description that uses monuments, angles, and distances is a:
A) Rectangular Survey System
