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1) A federally related transaction is:
b. a transaction in which a federal financial institution is involved.
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2) An appraiser's acceptance of compensation that is contingent on the reporting of a predetermined value is:
c. unethical.
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3) What is the Internet?
a. A worldwide community of people using computers to interact.
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4) Which statement is false?
b. Every real property appraisal must be performed by a certified appraiser.
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5) Appraisals are used to:
c. do both (a) and (b).
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6) A certified appraiser is required for federally related transactions for property valued at:
d. over $1 million
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7) A licensed appraiser may handle federally related appraisals of nonresidential property and complex residential property valued at less than:
b. $250,000
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8) An appraiser may discuss the results of the appraisal assignment with:
b. the client and anyone authorized by the client.
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9) Which standard of USPAP states that in reporting the results of a real estate appraisal, an appraiser must communicate each analysis, opinion and conclusion in a manner that is not misleading?
c. Standard 2
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10) Which standard of USPAP deals with review appraisals?
c. Standard 3
1) A federally related transaction is:
b. a transaction in which a federal financial institution is involved.
4) Which statement is false?
b. Every real property appraisal must be performed by a certified appraiser.
1) The term site refers to:
c. land that has been improved.
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2) Tangible items not permanently attached to real estate are:
b. personal property.
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3) The tests for a fixture do not include:
c. the cost of the item.
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4) In practice, real property is the same as:
d. real estate.
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5) Which of the following limitations is not a power of the government?
d. deed restrictions
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6) A subdivision map is referenced in the:
b. lot and block system.
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7) Base lines and meridians are used in the:
c. rectangular survey system.
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8) A township consists of
c. 36 sections of one square mile each.
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9) The interest that a tenant has in a building is called a:
b. leasehold estate.
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10) The right of survivorship is associated with:
c. joint tenancy.
1) The scientific study of population statistics is called:
1) The first step in the appraisal process is to:
c. state the problem.
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2) The sales comparison approach makes the most direct use of the principle of:
c. substitution.
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3) In the sales comparison approach, adjustments are made to the sales of:
a. comparable properties only.
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4) A feature that is present in the subject property and not present in a comparable property will mean what kind of price adjustment to the comparable?
d. addition
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5) In the sales comparison approach, if a feature in the comparable property is superior to that in the subject property a:
b. minus adjustment must be made to price of comparable.
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6) A house comparable to the subject property sold recently for $134,000 and is very similar to the subject, except that the comparable has an extra half-bath, valued at $3,600. What is the adjusted value of the comparable?
a. $130,400
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7) Vacant land would probably be valued using the:
d. sales comparison approach.
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8) When using the cost approach to value:
b. improvements are depreciated.
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9) In the income capitalization approach, property value is treated as a function of:
c. net operating income.
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10) In appraising a special-purpose building such as a post office, the most reliable approach to value would generally be the:
d. cost approach.
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2) Which one of the following is not an element that affects real estate value?
a. cost
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3) Market value is most closely associated with:
a. value in exchange.
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4) USPAP's definition of market value includes:
c. the most probable price a property is likely to bring.
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5) The underlying principle behind appraising is:
b. substitution.
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6) A highest and best use study will always value:
d. the property's most profitable permitted use.
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7) A poorly kept house that benefits from a generally well-maintained surrounding neighborhood is an example of:
a. progression.
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8) A subdivision of look-alike homes will benefit from:
c. conformity.
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9) The value of any improvement to property is subject to the principle of:
d. contribution.
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10) Earthquakes, mud slides and periods of economic depression are all examples of:
a. change.
A two-story house benefits economically because:
a. plumbing can be lined up.
b. less ground area is required.
5) The most common type of framing for both 1 and 2-story houses is:
a. platform frame construction.
7) Which type of insulation should be used?
d. neither(a) nor (b)
) Hollow and solid core refer to:
b. flush doors.
2) Which of the following terms refers to the stages that a neighborhood goes through over time?
c. life cycle
) A factor representing the percentage increase in construction costs over time is used in the:
d. index method.
) With a present index of 462, an index at time of construction of 220 and an original cost of $145,000, the present cost of a structure using the index method is:
d. $304,500
9) The method that results in the most accurate cost estimate is the:
b. quantity survey method.
A building permit and land survey are:
d. indirect costs of construction.
) Deferred maintenance usually results in which of the following?
b. curable physical deterioration.
6) The__________ method is used when an appraiser estimates the loss in value for curable and incurable items of depreciation.
d. observed condition
) The period from the date of appraisal in which a building should be useful for its oniginally intended purpose is its:
b. remaining econormic life.
) Useful life is the same as:
b. economic life.
) In reconciling, the appraiser considers the:
a. definition of value sought.
b. relevance of each approach to the subject property.
c. both (a) and (b).
Which type of appraisal report provides a full explanation of the appraiser's reasoning?
b. Self-contained report
A narrative appraisal report is formally presented to the appraiser's client in the:
c. letter of transmittal.
A condominium owner actually owns:
b. exclusive right to the airspace of the unit.
In a lease, who owns the legal interest called the leasehold estate?
d. lessee
6) In which type of lease agreement does the tenant know exactly how much rent will be due and payable each month during the term of the lease?
a. Gross lease
A leasehold interest has value only when:
c. contract rent is less than market rent.
Generally, the total value of leased fee and leasehold is:
c. the same as the value of free and clear ownership.
An outmoded room layout in a home is an example of:
a. functional obsolescence.
4) In using the sales comparison approach, the appraiser concludes that the location of Sale #1 is inferior to the location of the subject property but is superior to the location of Sale #2. The correct entry would be to adjust:
a. both sales up to the subject property.
9) Of the following, which adjustments should be made first? An adjustment for:
a. favorable financing.
5) Subtracting expenses from effective gross income yields the:
b. net operating income.
The process of eliminating inapplicable expenses and adjusting the expenses that remain is called:
c. reconstructing the operating statement.
8) The operating expense ratio for income producing property can be calculated by dividing operating expenses by:
c. effective gross income.
10) The break-even formula is:
b. total openating expenses divided by effective gross income.
) What ratio results when the sales price of a property is divided by its gross monthly rent?
b. Gross rent multiplier
) To receive a 14 percent return on an investment of $500,000, what would be the required net operating income of the purchased property?
c. $ 70,000
Capital recapture is:
d. return of the investment.
The band of investment technique is used to develop the:
d. overall capitalization rate.
The reversionary value of land is usually assumed by appraisers to be the:
c. same as its present value.
Which of the following does not apply to the straight-line method of recapture?
d. Interest accrues each year on the decreasing principal
Capital recapture is:
d. return of the investment.
The capitalization method which would be most appropriate for an office building leased by a public utility company for a term of 25 years is the:
d. annuity method.
10) The value of 100 acres of land best suited for high-density residential use may be found using the:
a. subdivision development method.
A measure of how far the average variate differs from the mean is the:
c. average deviation.
The total, or sum, of all variates is called:
c. an aggregate.
If the average price of houses today is $80,000 compared to $75,000 one year ago, what is the percent of change?
b. 6.7%
The formula for the cost approach is:
b. property value = replacement cost minus accrued depreciation plus site value.
Measuring the dimensions of the structure is the first step when using the:
d. square-foot method.
1) Economic base refers to:
c. the level of business activity in a community.
Which of the following terms refers to the stages that a neighborhood goes through over time?
c. life cycle
if land value begin, then allocatoin method
if 100 acres, then longest choice
if 462 index, then 304 500
if neighborhood, then life cycle
if econ, then business
subdivision map = lot and block
baseline meridian = rectangular
1) Gross living area normally includes:
d. none of the above
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2) A house oriented for maximum sunlight in winter will face:
b. south.
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3) A two-story house benefits economically because:
a. plumbing can be lined up.
b. less ground area is required.
c. both (a) and (b)
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4) A colorless, odorless, tasteless radioactive gas that comes from the natural breakdown of uranium is called:
b. radon.
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5) The most common type of framing for both 1 and 2-story houses is:
a. platform frame construction.
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6) The measure of the effectiveness of insulation is its:
c. R-value.
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7) Which type of insulation should be used?
d. neither(a) nor (b)
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8) The overhang of a pitched roof that extends beyond the exterior walls of the building is called the:
d. eave.
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9) Hollow and solid core refer to:
b. flush doors.
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10) The distribution panel for a home's electrical system is the:
d. circuit breaker box.
1) Economic base refers to:
c. the level of business activity in a community.
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2) Which of the following terms refers to the stages that a neighborhood goes through over time?
b. revitalization
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3) The period in which property values generally increase is:
a. growth.
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4) The effects of ordinary wear and tear are considered:
c. physical deterioration.
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5) A house with four bedrooms and one bathroom is an example of:
b. functional obsolescence.
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6) An expressway is built near a residential neighborhood resulting in very high traffic noise. This is an example of:
d. external obsolescence.
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7) As a general rule, the sales comparison approach is the most reliable approach with:
b. single-family residences.
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8) Varying financing terms may be compensated for when considering comparable properties by using the:
a. cash equivalency technique.
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9) What term is used for a transaction in which all parties to the transaction are dealing from equal bargaining positions?
c. arm's-length
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10) Which of the following would not be likely to prevent an arm's-length transaction?
c. Owner planning to move up to more expensive house.
1) Which of the following would normally not require a site to be valued separately from the structures on it?
b. use of the sales comparison approach
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2) The highiest and best use of real estate is its:
c. most profitable legally and physically permitted use.
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3) Residential property in an area rezoned for commercial use is an example of a(n):
b. nonconforming use.
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4) When a site's highest and best use is forecast to change in the near future, the present use is considered a(n):
b. interim use.
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5) Land value of an improved property can be found using the:
c. allocation method.
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6) Building net income is a consideration in finding land value by the:
d. land residual method.
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7) Sales of similar vacant sites are analyzed and compared in the:
d. sales comparison method.
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8) Land value is treated as a proportion of the total value of improved property in the:
b. allocation method.
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9) The value of all improvements (less depreciation) is subtracted from total sales prices to find site value in the:
b. abstraction method.
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10) The value of 100 acres of land best suited for high-density residential use may be found using the:
a. subdivision development method.
1) Accrued depreciation is not caused by which of the following?
c. accelerated depreciation.
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2) An outmoded room layout in a home is an example of:
a. functional obsolescence.
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3) Useful life is the same as:
b. economic life.
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4) The simplest method used to compute depreciation is the:
c. age-life or straight line method.
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5) The period from the date of appraisal in which a building should be useful for its oniginally intended purpose is its:
b. remaining econormic life.
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6) The__________ method is used when an appraiser estimates the loss in value for curable and incurable items of depreciation.
d. observed condition
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7) An item of depreciation that can be easily and economically restored or replaced is considered:
c. curable.
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8) Deferred maintenance usually results in which of the following?
b. curable physical deterioration.
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9) What type of depreciation is generally not curable?
c. external obsolescence.
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10) Deterioration of building foundation, walls and ceilings is considered:
d. long-lived incurable.
3) A special type of land use that allows a mixture of different land uses or densities is referred to as:
b. planned unit development.
In appraising special-purpose property, such as a school, greatest weight will probably be given to the value reached by the:
b. cost approach.
Tables, charts, photographs, maps and other supporting data are included in the:
b. addenda to an appraisal.
The capitalization method which would be most appropriate for an office building leased by a public utility company for a term of 25 years is the:
d. annuity method.
The band of investment technique is used to develop the:
d. overall capitalization rate.
The varying investment expectations of mortgage and equity holders on the same property are taken into account in the:
a. band of investment method.
a property's vacancy and collection losses are subtracted from the property's potential gross income
??
sales price of a property is divided by its gross monthly rent?
break-even formula is:
c. operating expenses plus annual debt service divided by potential gross income.
operating expense ratio = OPErating expenses/ effective gross income
effective gross income – expenses = net operating income
sales price / gross monthly rent = gross rent multiplier
In using the sales comparison approach, the appraiser concludes that the location of Sale #1 is inferior to the location of the subject property but is superior to the location of Sale #2. The correct entry would be to adjust:
a. both sales up to the subject property.
outmoded room layout in a home is an example of:
a. functional obsolescence.
Building net income is a consideration in finding land value by the:
d. land residual method.
Varying financing terms may be compensated for when considering comparable properties by using the:
a. cash equivalency technique.
When using the cost approach to value:
b. improvements are depreciated.
