question

Regulation of the appraisal profession is largely due to

answer

FIRREA

question

Which individual is authorized to perform residential appraisals regardless of transaction amount or complexity under Appraisal Foundation guidelines?

answer

b and c only

question

Which of the following statements about property value is not true?

answer

Price and market value are identical

question

Market value is the value of a property to a typical investor, and___ is the value of a property to a particular investor.

answer

Investment value

question

The value of future benefits or future utility is the basis of the principle of

answer

anticipation

question

The value that real estate appraisers generally estimate is market value, which is synonymous with

answer

most probable selling price

question

Investment value, the value of a property to an individual investor, is synonymous with

answer

Value in use

question

The principle of substitution is the basis for which approach to valuation?

answer

All of the above

question

In analyzing the direction and degree of change in factors affecting market value, the appraiser is using which or the following principles?

answer

Anticipation and change

question

The principle of ___ holds that the value of a component part of a property depends on the amount it contributes to the whole.

answer

contribution

question

The first step of the valuation process, definition of the problem, includes which of the following?

answer

All of the above

question

The last step of the valuation process, report of defined value, includes which of the following?

answer

Conveying the value estimate to the client

question

In which of the following scenarios can the value of a real estate improvement be negative?

answer

When the value of the land if vacant exceeds the value of the land as improved

question

The sales comparison approach is

answer

very dependent upon how the appraiser makes adjustments between the comparables and the subject property.

question

Which of the following is NOT true?

answer

The appraisal is most accurate on the day of the closing

question

The estimated cost of building an equally functional structure using modern methods and costs is generally referred to as the

answer

replacement cost

question

Which of the following statements is true regarding the sales comparison approach?

answer

Adjustments are made to the sales prices of the comparable properties to make them representative of the subject property's characteristics.

question

Which of the following is NOT true?

answer

On older buildings, the cost approach deducts tax depreciation.

question

What term is the result of a property's inability to generate income due to factors outside the property?

answer

Economic obsolescence

question

The income approach

answer

is based upon the concept of present value

question

Dividing the price of a comparable property by its gross annual income results in

answer

gross income multiplier

question

In the cost approach to value, which factor of depreciation is NOT used?

answer

Tax depreciation

question

Which of the following is considered representative, thus, usable as a comparable sale for a market-value estimate?

answer

A house sold under normal market conditions

question

Which of the following is NOT a step in the net income capitalization technique?

answer

Computation of the accrued depreciation

question

In the income approach, which of the following is capitalized to obtain an estimate of value?

answer

Net operating income

question

Which approach would probably be most accurate in the valuation of a shopping center?

answer

Income approach

question

Which approach would probably be most accurate in the valuation of a church?

answer

Cost approach

question

Which valuation approach would be most accurate in the valuation of a school, museum or library?

answer

Cost approach

question

Which appraisal approach would be most accurate in the valuation of a ten-year-old single family dwelling?

answer

Sales comparison approach

question

Which of the approaches of appraisal would be more accurate of a rented single family home?

answer

Income approach

question

Assume a reproduction cost of $115,000, replacement cost of $100,000, accrued tax depreciation of $60,000, accrued economic depreciation of $45,000, and unimproved land value of $12,000. If this information describes a small general-use industrial building, what is the value by the cost approach?

answer

$67,000

question

Assume a reproduction cost of $115,000, replacement cost of $100,000, accrued tax depreciation of $60,000, accrued economic depreciation of $45,000, and unimproved land value of $12,000. If this information describes a unique property of historical significance, what is the value by the cost approach?

answer

$82,000

question

The sales price of a comparable sale with a below market rate assumable loan must be adjusted ___ to make it comparable to a subject property which does not have an assumable loan.

answer

downward

question

The sales price of a comparable sale must be adjusted ___ to account for the lack of a fireplace, when the subject property has a built-in fireplace.

answer

upward

question

Elements of comparison in the sales comparison approach include all the following EXCEPT

answer

gross income multiplier

question

Which of the following is not required by Standard 1 of the Uniform Standards of Professional Appraisal Practice?

answer

All of the above are required by Standard 1 of USPAP

question

What category of appraisers could be hired by a federally regulated financial institution to appraise a 10-unit apartment building that is being pledged as collateral for a loan of $790,000?

answer

Certified general appraiser

question

Consider a single family house on a 1 acre lot that is located in an area of town where industrial uses are now permitted and are becoming more common. Over the last ten years, the area has seen numerous "tear downs" where existing homes were demolished and new warehouses constructed. As a single family residence, the property has an estimated market value of $180,000. As a vacant site for a new warehouse, the land (without the house on it) is worth $185,000. If it will cost $10,000 to demolish the existing house, what is the highest and best use of this property?

answer

Single family residence

question

Which of the following is not an implied condition in an estimate of market value as defined in the text?

answer

Parties to the transaction have unusual or atypical motivations for being involved in the transaction

question

In the ___, appraisers consider recent transactions involving properties similar to the subject property

answer

Sales comparison approach

question

Consistent with classical economic theory ___ is equivalent to a property's "value in use," while ___ is equivalent to a property's "value in exchange."

answer

investment value, market value

question

Suppose you are asked to estimate the value of a 3 bedroom

answer

$199,000

question

In the___, appraisers estimate market value by

answer

income approach

question

In the ___ (less any depreciation)

answer

cost approach

question

At what point in the appraisal process should and appraiser

answer

Step1: definition of the problem

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