Appraisal Exam with Verified Answers
How is the gross adjustment percentage calculated in the sales comparison approach?
- Correct Answers -Dividing the total dollar adjustment by the comparable sales price
What adjustment is usually dollar amounts instead of percentage - Correct Answers -
Physical Features
What adjustments do appraisers make first? - Correct Answers -Percentage
Adjustments
To determine the reproduction cost, the appraiser index factor is multiplied by what? -
Correct Answers -The original construction cost
What estimates property loss in value with curable and incurable items - Correct
Answers -Observed Conditions
What applies capitalization rate to income for similar properties? - Correct Answers -
Capitalized Value
What uses comparable properties' sales price to figure out the value of a depreciated
item? - Correct Answers -Market Extraction
What is the easiest method to measure depreciation? - Correct Answers -Age-Life
What is known as the 'breakdown' method? - Correct Answers -Observed Condition
What is known as the 'Economic Age-Life' method? - Correct Answers -Age-Life
Which measure of time is used when a structure is expected to remain standing? -
Correct Answers -Physical life
What requires special attention from an appraiser regarding manufactured homes? -
Correct Answers -Lease term
When appraising a manufactured home, it is recommended that appraisers look for the
HUD label to make sure the home meets what requirements? - Correct Answers -FHA
requirements
What is it called when a building is unusable for today's needs and use? - Correct
Answers -Functional Obsolescence
, Do Modular Homes appreciate the same way Site-Built homes do? - Correct Answers -
Yes
What is a linear measurment? - Correct Answers -Any system for measuring length
What option benefits the lessee rather than the lessor? - Correct Answers -A renewal
option
What type of properties use Gross Rent Multiplier (GRM)? - Correct Answers -One to
Four Family Units
What type of properties use Gross Income Multiplier (GIM)? - Correct Answers -Five
units or Larger
What is the most thorough method of using income approach? - Correct Answers -Yield
Capitalization
What is known as the amount of money returned from an investment? - Correct
Answers -Yield
When working with commercial properties, appraisers develop an estimate of market
rent by - Correct Answers -Converting annual dollars per sq ft
When using Income Capitalization, where is the cap rate applied? - Correct Answers -
To the Net Operating Income
To estimate market rent for residential properties, appraisers do what? - Correct
Answers -Convert monthly rental income to annual dollars per room
How is NOI used in an income-based approach? - Correct Answers -NOI is divided by
the Cap Rate
What can be used to calculate the occupancy rate and rent to make a proft? - Correct
Answers -The Break-Even Ratio
How is NIR calculated? - Correct Answers -NOI/Effective Gross Income
In an income approach, what is listed both on the accountant and appraiser's
statement? - Correct Answers -Real Estate Tax
How do you find the Operating Expense Ratio? - Correct Answers -Operating expenses/
Effective Gross Income
How do you find the Break Even ratio? - Correct Answers -(Operating Expenses + Debt
Serviced)/Effective Gross Income
How is the gross adjustment percentage calculated in the sales comparison approach?
- Correct Answers -Dividing the total dollar adjustment by the comparable sales price
What adjustment is usually dollar amounts instead of percentage - Correct Answers -
Physical Features
What adjustments do appraisers make first? - Correct Answers -Percentage
Adjustments
To determine the reproduction cost, the appraiser index factor is multiplied by what? -
Correct Answers -The original construction cost
What estimates property loss in value with curable and incurable items - Correct
Answers -Observed Conditions
What applies capitalization rate to income for similar properties? - Correct Answers -
Capitalized Value
What uses comparable properties' sales price to figure out the value of a depreciated
item? - Correct Answers -Market Extraction
What is the easiest method to measure depreciation? - Correct Answers -Age-Life
What is known as the 'breakdown' method? - Correct Answers -Observed Condition
What is known as the 'Economic Age-Life' method? - Correct Answers -Age-Life
Which measure of time is used when a structure is expected to remain standing? -
Correct Answers -Physical life
What requires special attention from an appraiser regarding manufactured homes? -
Correct Answers -Lease term
When appraising a manufactured home, it is recommended that appraisers look for the
HUD label to make sure the home meets what requirements? - Correct Answers -FHA
requirements
What is it called when a building is unusable for today's needs and use? - Correct
Answers -Functional Obsolescence
, Do Modular Homes appreciate the same way Site-Built homes do? - Correct Answers -
Yes
What is a linear measurment? - Correct Answers -Any system for measuring length
What option benefits the lessee rather than the lessor? - Correct Answers -A renewal
option
What type of properties use Gross Rent Multiplier (GRM)? - Correct Answers -One to
Four Family Units
What type of properties use Gross Income Multiplier (GIM)? - Correct Answers -Five
units or Larger
What is the most thorough method of using income approach? - Correct Answers -Yield
Capitalization
What is known as the amount of money returned from an investment? - Correct
Answers -Yield
When working with commercial properties, appraisers develop an estimate of market
rent by - Correct Answers -Converting annual dollars per sq ft
When using Income Capitalization, where is the cap rate applied? - Correct Answers -
To the Net Operating Income
To estimate market rent for residential properties, appraisers do what? - Correct
Answers -Convert monthly rental income to annual dollars per room
How is NOI used in an income-based approach? - Correct Answers -NOI is divided by
the Cap Rate
What can be used to calculate the occupancy rate and rent to make a proft? - Correct
Answers -The Break-Even Ratio
How is NIR calculated? - Correct Answers -NOI/Effective Gross Income
In an income approach, what is listed both on the accountant and appraiser's
statement? - Correct Answers -Real Estate Tax
How do you find the Operating Expense Ratio? - Correct Answers -Operating expenses/
Effective Gross Income
How do you find the Break Even ratio? - Correct Answers -(Operating Expenses + Debt
Serviced)/Effective Gross Income
