attendance credit

The estimation of a defined value for a specific real property interest in a specific parcel of real estate, as of a specific date, is:

the definition of an appraisal.

valuation.

 the use of an appraisal.

 the practice of appraisal.

valuation.

The organization that is responsible for national qualification standards for appraisal certification, and for the Uniform Standards of Professional Appraisal Practice, is the:

Appraisal Foundation.

Appraisal Institute.

 Federal Appraisal Council.

 Federal National Mortgage Association.

Appraisal Foundation.

According to the USPAP, real estate includes:

land and improvements.

land only.

 land, improvements, and encumbrances.

 land, improvements, and trade fixtures.

land and improvements.

An estate that includes possession without title is:

 the fee simple.

 the leasehold.

 the leased fee.

 No answers correct

 the leasehold.

The power of government to regulate for the public health, safety, and welfare is known as:

sovereignty

the power of eminent domain.

 states’ rights.

 the police power..

 the police power..

A possessory estate that includes title to the real estate is a(n):

 

leasehold estate.

 

easement estate.

 

freehold estate.

 

tenancy estate.

freehold estate.

Market value is sometimes referred to as:

 

Value in exchange.

 

Value in use.

 

Investment value.

 

No answers correct.

Value in exchange.

The principle of supply and demand states that prices will tend to increase when:

 

demand exceeds supply.

 

supply exceeds demand.

 

supply and demand are in balance.

 

competition increases.

demand exceeds supply.

Which of the following is NOT a characteristic of value?

 

Demand.

 

Utility.

 

Scarcity.

 

Cost.

Cost.

Effective demand consist of:

 

utility and scarcity.

 

desire and purchasing power.

 

supply and purchasing power.

 

No answers correct.

desire and purchasing power.

The effective date of an appraisal is:

 

the date as of which value is estimated.

 

the date of the appraisal report.

 

the date the appraiser accepts the appraisal assignment.

 

the date on which the appraiser inspects the subject property.

the date as of which value is estimated.

The Southeast quarter of the Southwest quarter of Section 25 contains: 

 

160 acres.

 

80 acres.

 

40 acres.

 

640 acres.

40 acres.

An iron stake at a corner of a property would be a(n):

 

benchmark.

 

natural monument.

 

artificial monument.

 

standard parallel.

artificial monument.

Courses in metes and bounds descriptions are given according to:

 

the angle of deviation from north or south.

 

the angle of deviation from east or west.

 

the time it takes to walk the boundary lines

 

No answers correct.

the angle of deviation from north or south

The primary north-south line in a rectangular survey grid is called the:

 

correction line

 

base line.

 

guide meridian.

 

principal meridian.

principal meridian.

Which of the following types of data is most likely to be derived from secondary data sources?

 

Site data

 

Building data

 

Regional data

 

Neighborhood data

Regional data

In an appraisal of residential property, building data would NOT be used to:

 

determine highest and best use of the land as if vacant.

 

adjust the sales prices of comparable properties (sales comparison approach).

 

estimate reproduction cost or replacement cost in the cost approach to value.

 

identify comparable properties for analysis.

determine highest and best use of the land as if vacant.

The most reliable building data for the subject property is acquired by:

 

reviewing the plans and specification.

 

personal inspection.

 

interviewing the property owner.

 

reviewing previous appraisal report on the property.

personal inspection.

The sales price of a comparable property may need to be adjusted to account for:

 

All answers correct.

 

financing terms.

 

data of sale.

 

building size.

All answers correct.

If market interest rates are 8%, and a comparable property is sold with seller financing at 6%, the price paid for the comparable property is likely to be:

 

higher than market value.

 

lower than market value.

 

the same as market value.

 

No answers correct.

higher than market value.

When the highest and best use of land as if vacant is different than the highest and best use of the property as improved, the true highest and best use of the property is:

 

The highest and best use of the land as if vacant.

 

The use that results in the highest value.

 

The highest and best use of the property as improved.

 

No answers correct.

The use that results in the highest value.

An improved residential property is valued at $150,000.  If building value to land value ratios are typically 2 to 1, the land value indicated by allocation would be:

 

$25,000

 

$75,000

 

$100,000

 

$50,000

$50,000

The heating capacity of a furnace is measured in:

 

Amps.

 

Volts.

 

BTUs

 

Kilos.

BTUs

A house with a party wall would be considered:

 

manufactured.

 

detached.

 

multi-family.

 

attached.

attached.

In which room would direct outside access be considered most desirable?

 

Bedroom

 

Living room

 

Dining room

 

Family room

Family room

The unit cost used with the unit-in-place method include the costs of:

 

Equipment.

 

Labor.

 

Materials.

 

All answers correct.

All answers correct.

The cost to create an exact replica of an improvement, using the same materials and craftsmanship of the subject building, is called:

 

Reproduction cost.

 

Miniaturization.

 

Similarity cost.

 

All answers correct.

Reproduction cost.

A poor floor plan design is an example of:

 

functional obsolescence.

 

deferred maintenance.

 

a superadequacy.

 

economic obsolescence

functional obsolescence.

The total dollar amount of adjustments for a comparable’s sales price, regardless of whether they are positive or negative, is known as:

 

Net adjustment.

 

Gross adjustment.

 

Dollars and cents adjustments.

 

No answers correct.

Gross adjustment.

If comparable sales data is inadequate or missing.

 

the sales comparison approach cannot be properly applied.

 

the sales comparison approach must be applied.

 

an appraisal cannot be done.

 

No answers correct.

the sales comparison approach cannot be properly applied.

The subject property is a 1,700 square foot rambler, with three bedrooms, one bath, and an attached two-car garage.

Comparable A has two baths and 1,800 square feet, and sold recently for $97,500.

Comparable B also has 1,800 square feet, but only a one-car garage; its sales price was $92,000.

Comparable C has a three-car garage and two baths, and sold for $95,000.

Market data indicates the amounts of the adjustments to be $2,000 for garage space per car, $3,500 for a bath, and $4,000 for 100 square feet of living area.  Other than the differences noted here, the comparables are similar to the subject property in all respects.

Question: What is the total gross adjustment to the price of Comparable B?

 

$2,000

 

$6,000

 

$4,000

 

$8,000

$6,000

A property consist of 6 apartment units with a market rent of $500 per month per unit.  One of the units is occupied by the apartment manager who receives free ret in return for managing the complex.  Average bad debt and vacancies account for 10% of total rental income, and annual operating expenses are $15,000.

Question: What is the property’s annual potential gross income?

 

$32,400

 

$27,000

 

$30,000

 

$36,000

$36,000

When requested by a client to carry out a limited appraisal, the appraiser should:

 

determine if other intended users will understand the report.

 

inform the client that the report has lessened reliability.

 

determine if the client’s intended use wil be met by such a report.

 

All answers correct.

All answers correct.

When reviewing the appraisal, the appraiser must check that:

 

all mortgages are through the same lending institution.

 

all properties were evaluated on the basis of the same highest and best use.

 

all properties were evaluated on the basis of the same real property interest.

 

No answers correct.

all properties were evaluated on the basis of the same highest and best use.

 

all properties were evaluated on the basis of the same real property interest.

An appraiser’s estimate of the range in which the property’s value is most likely to fall is:

 

a sloppy estimate.

 

called a range value.

 

a guarantee of value.

 

No answers correct.

called a range value.

When requested by a client to carry out a limited appraisal, the appraiser should:

 

determine if other intended users will understand the report.

 

inform the client that the report has lessened reliaility.

 

determine if the client’s intended use will be met by such a report.

 

All answers correct.

All answers correct.

Which type of appraisal report would be most likely to include a table of contents?

 

Narrative report.

 

Form report.

 

Letter report.

 

Letter of transmittal.

Narrative report.

A report that may only be used by the client alone and for one particular purpose is a:

 

specialized report.

 

restricted report.

 

letter opinion of value.

 

a client valuation report.

restricted report.

A temporary transfer of the rights to occupy and use a property is called:

 

A land grant.

 

A lease.

 

Squatter’s rights.

 

All answers correct.

A lease.

What type of easement prohibits an owner from a use?

 

A negative easement.

 

A restraining order easement.

 

An easement in gross.

 

A non-easement.

A negative easement.

The cost of managing and maintaining the common areas of a development is an important consideration in the appraisal of:

 

PUD’s.

 

condominiums.

 

cooperatives.

 

All answers correct.

All answers correct.

If a lease calls for rental payments that are higher than rents for comparable properties:

 

the value of the leased fee estate is changed.

 

the value of the leasehold estate is enhanced.

 

the effect on value depends on the original lease term.

 

No answers correct.

the value of the leased fee estate is changed.

In a tenancy in common:

 

each owner has the undivided right to use the entire property.

 

each owner has an equal share in the ownership of the property.

 

an owner may not transfer his or her interest without the consent of all the other co-owners.

 

All answers correct.

each owner has the undivided right to use the entire property.

When appraising a leasehold or leased fee interest, an appraiser must:

 

determine the value of the fee simple interest.

 

consider the effect on value of the lease terms.

 

give the most weight to the value of the lease terms.

 

All answers correct.

consider the effect on value of the lease terms.

The organization that is responsible for updating the USPAP to reflect changes in teh appraisal profession is the:

 

Appraisal Standards Board.

 

Appraisal Qualifications Board.

 

Appraisal Practices Board.

 

Uniform Standards Board.

Appraisal Standards Board.

In order to perform a complex appraisal in connection with a federally related transaction, an appraiser must:

 

have a minimum of 5 years experience.

 

be state licensed.

 

be state certified.

 

All answers correct.

be state certified.

USPAP stands for:

 

Uniform Standards of Professional Appraisal Practice.

 

Universal System for Practicing Appraisal Professionals.

 

Uniform System of Professional Appraisal Performance.

 

No answers correct.

Uniform Standards of Professional Appraisal Practice.

In a Fannie Mae/Freddie Mac appraisal of a property in a new development, the appraiser must use at least one comparable sale that:

 

was completed within 3 months prior to the appraisal date.

 

is located in a different development than the subject.

 

is located in a different neighborhood than the subject.

 

is outside the control of the developer/builder.

is outside the control of the developer/builder.

The agency responsible for monitoring the appraiser licensing systems of the individual states is the:

 

Appraisal Foundation.

 

Appraiser Licensing Board.

 

Appraisal Oversight Committee.

 

Appraisal Subcommittee FFIEC.

Appraisal Subcommittee FFIEC.

Fannie Mae/Freddie Mac regulations require appraisals to be performed within:

 

3 months prior to the loan date.

 

4 months prior to the loan date.

 

6 months prior to the loan date.

 

1 year prior to the loan date.

4 months prior to the loan date.