Appraisal Exam UPDATED Questions and
CORRECT Answers
Only if the property experiences a change in ownership or new construction - CORRECT
ANSWER - Property tax laws permit the preparation of current market value appraisals under
what circumstance?
Externalities - CORRECT ANSWER - What appraisal principle states that economic factors
outside the property may have a positive or negative effect on the property's value?
Anticipation - CORRECT ANSWER - Value is the present worth of future benefits, according
to the principle of?
Conformity - CORRECT ANSWER - What term is used to explain the appraisal principle that
states that the value of a property is influenced by its being in harmony with the surrounding
properties?
Eminent domain - CORRECT ANSWER - The legal right of government to acquire private
property for a public use or purpose with just compensation is known as?
When it is: newly constructed, a change of ownership, and if there is a decline in value -
CORRECT ANSWER - When should property be reappraised?
An estimate of value - CORRECT ANSWER - An appraisal is?
Externalities (for airport question) - CORRECT ANSWER - Which of the following
principles best describes the effect of an international airport on the value of a nearby residential
subdivision?
Open market - CORRECT ANSWER - What term is used for a transaction in which all parties
to the transaction are dealing from equal bargaining positions?
,the value will increase - CORRECT ANSWER - If demand of homes remains constant and the
supply decreases, then..?
the power of a commodity to demand other commodities in exchange, part of the criteria for
Market Value, and can be expressed in terms of other commodities - CORRECT ANSWER -
Value in exchange
commonly bought and sold in the open market - CORRECT ANSWER - When appraising
property the appraiser must appraise the appraisal unit that is...?
legally permitted, physically possible, and reasonably probable - CORRECT ANSWER -A
prospective use that represents the "highest and best use" of the land must be..?
Identify and evaluate factors that may influence property values - CORRECT ANSWER - The
primary reason an appraiser analyzes a neighborhood is to..?
An economic principle that says potential buyers of property consider prices paid for similar
properties - CORRECT ANSWER - Substitution
Taxes are NOT an agent of production (land, capital, entrepreneurship ARE) - CORRECT
ANSWER - Agents of production do not include..?
Principle of substitution - CORRECT ANSWER - The presumption that the market value of a
property will conform to the sales price of close substitutes is based upon the..?
Appraise the new building, do NOT reappraise the land - CORRECT ANSWER - If someone
has owned land for a couple years, and then recently built a home, how should the assessor treat
the property?
, Progression - CORRECT ANSWER - A home that costs $150,000 is surrounded by homes
priced substantially higher. What principle is most applicable to the $150,000 home in a current
appraisal?
CA Constitution says: All property is taxable unless otherwise provided - CORRECT
ANSWER - California Constitution provides that:
a different value - CORRECT ANSWER - Land values of parcels which are the same size and
side by side may have..?
Taxable possessory interest - CORRECT ANSWER - A person building a cabin on land they
leased from the US Forest Service is an example of?
Comparative sales approach, cost approach, and income approach - CORRECT ANSWER -
The principle of substitution can be applied to what approaches?
scarcity, demand, utility, and capacity for private ownership - CORRECT ANSWER - The
four elements that create value are?
zoning is a right of government police power - CORRECT ANSWER - Police power example:
the right to occupy, exclude others, or to sell; the right to borrow against; the right to convey by
inheritance - CORRECT ANSWER - The "bundle of rights" includes:
Joint tenancy - CORRECT ANSWER - What type of ownership has definite rights of
survivorship?
appraisers should appraise at market value - CORRECT ANSWER - When making an
appraisal for property tax purposes the appraiser is to appraise the property at:
CORRECT Answers
Only if the property experiences a change in ownership or new construction - CORRECT
ANSWER - Property tax laws permit the preparation of current market value appraisals under
what circumstance?
Externalities - CORRECT ANSWER - What appraisal principle states that economic factors
outside the property may have a positive or negative effect on the property's value?
Anticipation - CORRECT ANSWER - Value is the present worth of future benefits, according
to the principle of?
Conformity - CORRECT ANSWER - What term is used to explain the appraisal principle that
states that the value of a property is influenced by its being in harmony with the surrounding
properties?
Eminent domain - CORRECT ANSWER - The legal right of government to acquire private
property for a public use or purpose with just compensation is known as?
When it is: newly constructed, a change of ownership, and if there is a decline in value -
CORRECT ANSWER - When should property be reappraised?
An estimate of value - CORRECT ANSWER - An appraisal is?
Externalities (for airport question) - CORRECT ANSWER - Which of the following
principles best describes the effect of an international airport on the value of a nearby residential
subdivision?
Open market - CORRECT ANSWER - What term is used for a transaction in which all parties
to the transaction are dealing from equal bargaining positions?
,the value will increase - CORRECT ANSWER - If demand of homes remains constant and the
supply decreases, then..?
the power of a commodity to demand other commodities in exchange, part of the criteria for
Market Value, and can be expressed in terms of other commodities - CORRECT ANSWER -
Value in exchange
commonly bought and sold in the open market - CORRECT ANSWER - When appraising
property the appraiser must appraise the appraisal unit that is...?
legally permitted, physically possible, and reasonably probable - CORRECT ANSWER -A
prospective use that represents the "highest and best use" of the land must be..?
Identify and evaluate factors that may influence property values - CORRECT ANSWER - The
primary reason an appraiser analyzes a neighborhood is to..?
An economic principle that says potential buyers of property consider prices paid for similar
properties - CORRECT ANSWER - Substitution
Taxes are NOT an agent of production (land, capital, entrepreneurship ARE) - CORRECT
ANSWER - Agents of production do not include..?
Principle of substitution - CORRECT ANSWER - The presumption that the market value of a
property will conform to the sales price of close substitutes is based upon the..?
Appraise the new building, do NOT reappraise the land - CORRECT ANSWER - If someone
has owned land for a couple years, and then recently built a home, how should the assessor treat
the property?
, Progression - CORRECT ANSWER - A home that costs $150,000 is surrounded by homes
priced substantially higher. What principle is most applicable to the $150,000 home in a current
appraisal?
CA Constitution says: All property is taxable unless otherwise provided - CORRECT
ANSWER - California Constitution provides that:
a different value - CORRECT ANSWER - Land values of parcels which are the same size and
side by side may have..?
Taxable possessory interest - CORRECT ANSWER - A person building a cabin on land they
leased from the US Forest Service is an example of?
Comparative sales approach, cost approach, and income approach - CORRECT ANSWER -
The principle of substitution can be applied to what approaches?
scarcity, demand, utility, and capacity for private ownership - CORRECT ANSWER - The
four elements that create value are?
zoning is a right of government police power - CORRECT ANSWER - Police power example:
the right to occupy, exclude others, or to sell; the right to borrow against; the right to convey by
inheritance - CORRECT ANSWER - The "bundle of rights" includes:
Joint tenancy - CORRECT ANSWER - What type of ownership has definite rights of
survivorship?
appraisers should appraise at market value - CORRECT ANSWER - When making an
appraisal for property tax purposes the appraiser is to appraise the property at:
