NYC City Assessor (Promotion) Examination ACTUAL EXAM
COMPLETE QUESTIONS AND DETAILED SOLUTIONS
SECTION I — REAL PROPERTY VALUATION PRINCIPLES
Questions 1–50
1. What is the primary purpose of a real property appraisal?
A. Determine the owner's mortgage balance
B. Develop an opinion of value for a specified purpose and date
C. Determine the property's insurance premium
D. Establish the property's selling commission
Answer: B
Solution: An appraisal develops an opinion of value for a defined
purpose, interest, and effective date. The intended use determines the
appropriate appraisal methodology.
2. In real property appraisal, “market value” generally refers to:
A. The owner's desired selling price
B. The amount of the property's construction cost
C. A value conclusion based on market conditions and appropriate
assumptions
D. The amount of outstanding property taxes
Answer: C
Solution: Market value is developed from market evidence and
assumptions appropriate to the applicable definition of value.
,3. Which principle states that a buyer generally will not pay more for a
property than the cost of acquiring an equally desirable substitute?
A. Anticipation
B. Substitution
C. Contribution
D. Regression
Answer: B
Solution: The principle of substitution recognizes that buyers compare
alternatives and generally seek economically comparable substitutes.
4. The principle of highest and best use concerns:
A. The property's current owner
B. The legally permissible and financially feasible use that produces the
greatest value
C. The property's original construction method
D. The owner's preferred use
Answer: B
Solution: Highest and best use considers legal permissibility, physical
possibility, financial feasibility, and maximum productivity.
5. Which is NOT one of the traditional tests of highest and best use?
A. Legally permissible
B. Physically possible
,C. Financially feasible
D. Personally preferred by the owner
Answer: D
Solution: Highest and best use is market-oriented, not based on the
individual owner's personal preference.
6. A property's highest and best use may differ from its current use
because:
A. Current use is always legally required
B. Another use may create greater value while satisfying the applicable
tests
C. Current use is never considered
D. Appraisers ignore zoning
Answer: B
Solution: Current use is relevant, but another use may be the highest
and best use if legally permissible, physically possible, financially
feasible, and maximally productive.
7. The cost approach is particularly useful when:
A. The property has no physical improvements
B. The improvements are relatively new or specialized
C. There are numerous identical income-producing properties
D. Only rental data are available
Answer: B
, Solution: The cost approach can be especially useful for newer, special-
purpose, or limited-market properties.
8. The basic concept underlying the cost approach is:
A. Value equals gross rent
B. Value equals land value plus depreciated improvement cost
C. Value equals assessed value divided by taxes
D. Value equals mortgage balance
Answer: B
Solution: The cost approach generally considers land value plus the cost
to create the improvements, less applicable depreciation.
9. Replacement cost means:
A. Cost to reproduce the exact original structure
B. Cost to construct a structure with equivalent utility using modern
materials and standards
C. The owner's acquisition price
D. The property's tax value
Answer: B
Solution: Replacement cost reflects an improvement with equivalent
utility, whereas reproduction cost seeks a replica.
10. Reproduction cost is:
COMPLETE QUESTIONS AND DETAILED SOLUTIONS
SECTION I — REAL PROPERTY VALUATION PRINCIPLES
Questions 1–50
1. What is the primary purpose of a real property appraisal?
A. Determine the owner's mortgage balance
B. Develop an opinion of value for a specified purpose and date
C. Determine the property's insurance premium
D. Establish the property's selling commission
Answer: B
Solution: An appraisal develops an opinion of value for a defined
purpose, interest, and effective date. The intended use determines the
appropriate appraisal methodology.
2. In real property appraisal, “market value” generally refers to:
A. The owner's desired selling price
B. The amount of the property's construction cost
C. A value conclusion based on market conditions and appropriate
assumptions
D. The amount of outstanding property taxes
Answer: C
Solution: Market value is developed from market evidence and
assumptions appropriate to the applicable definition of value.
,3. Which principle states that a buyer generally will not pay more for a
property than the cost of acquiring an equally desirable substitute?
A. Anticipation
B. Substitution
C. Contribution
D. Regression
Answer: B
Solution: The principle of substitution recognizes that buyers compare
alternatives and generally seek economically comparable substitutes.
4. The principle of highest and best use concerns:
A. The property's current owner
B. The legally permissible and financially feasible use that produces the
greatest value
C. The property's original construction method
D. The owner's preferred use
Answer: B
Solution: Highest and best use considers legal permissibility, physical
possibility, financial feasibility, and maximum productivity.
5. Which is NOT one of the traditional tests of highest and best use?
A. Legally permissible
B. Physically possible
,C. Financially feasible
D. Personally preferred by the owner
Answer: D
Solution: Highest and best use is market-oriented, not based on the
individual owner's personal preference.
6. A property's highest and best use may differ from its current use
because:
A. Current use is always legally required
B. Another use may create greater value while satisfying the applicable
tests
C. Current use is never considered
D. Appraisers ignore zoning
Answer: B
Solution: Current use is relevant, but another use may be the highest
and best use if legally permissible, physically possible, financially
feasible, and maximally productive.
7. The cost approach is particularly useful when:
A. The property has no physical improvements
B. The improvements are relatively new or specialized
C. There are numerous identical income-producing properties
D. Only rental data are available
Answer: B
, Solution: The cost approach can be especially useful for newer, special-
purpose, or limited-market properties.
8. The basic concept underlying the cost approach is:
A. Value equals gross rent
B. Value equals land value plus depreciated improvement cost
C. Value equals assessed value divided by taxes
D. Value equals mortgage balance
Answer: B
Solution: The cost approach generally considers land value plus the cost
to create the improvements, less applicable depreciation.
9. Replacement cost means:
A. Cost to reproduce the exact original structure
B. Cost to construct a structure with equivalent utility using modern
materials and standards
C. The owner's acquisition price
D. The property's tax value
Answer: B
Solution: Replacement cost reflects an improvement with equivalent
utility, whereas reproduction cost seeks a replica.
10. Reproduction cost is:
