Q&A Hero

Q: Good architecture is concerned with all the following excepta. Harmony with the setting b. Purity of stylec. Appropriate materials d. Proper scale

Q: Rating a house for its marketability and appeal involves a judgment ofa. The demands of the market b. The quality of constructionc. The condition and livability d. All of the above

Q: The type of basic frame, wall, floor, and roof construction all relate to what is known as thea. Type of occupancy b. Type of designc. Construction classificationd. Construction quality

Q: When making the building inspection, the appraiser a. Always looks for the same things b. Considers the purpose and intended use of the appraisal c. Keeps in mind the value approaches to be emphasized d. Both b and c are correct

Q: Zoning and other use restrictions should be understood so that the appraiser can a. Predict the type of development b. Determine the legal and potential uses c. Demonstrate compliance with the master plan d. Identify and report violations

Q: Controls that arise from the government's police power include all except which one of the followinga. Deed restrictions b. Zoning regulationsc. Subdivision requirements d. Building & safety regulations

Q: On-site improvements considered a part of the site do not includea. Lot fill and compaction b. Sidewalks and curbsc. Retaining walls d. Drainage systems

Q: Of the lot types listed here, which has the least sideyard privacy?a. Cul-de-sac b. Key c. T-Intersectiond. Inside or interior

Q: Plottage value can be defined as a. The value of land adjacent to the subject property b. The added value that may result from combining parcels c. The price of land per plot d. The value of land per unit

Q: Physical features important to a site's utility include all the following except a. Property taxes b. Size, shape, and topography c. Lot type and orientation d. On-site and off-site improvements

Q: The data required for the site analysis includes a. A sales history of the subject property b. Size and shape and other physical characteristics c. Legal characteristics d. All of the above

Q: The highest and best use must bea. Physically and legally possible b. Economically feasiblec. Most or maximally productive d. All of the above

Q: The appraiser's opinion of highest and best use on the date of value should include a. The highest and best use as if vacant b. The highest and best use as improved c. Both a and b above d. None of the above

Q: Land and buildings should be valued on the basis of the same use. Select the principle which defines this standard:a. Conformity b. Substitutionc. Consistent use d. Contribution

Q: Value is the present worth of future benefits, according to the principle ofa. Contribution b. Highest and best usec. Anticipation d. Surplus productivity

Q: Maximum value often results where properties in a neighborhood are relatively similar. Select the principle which most applies.a. Anticipation b. Highest and best usec. Conformity d. Consistent use

Q: Disposable income is often studied as a good indicator of demand for real estate. It is defined asa. Income after personal taxes b. Gross National Product c. Money spent on recreationd. Income spent on housing

Q: Strong competition often leads to oversupply, and the reduction of price. Which of the following best describes this cause and effect? a. Excess profits breed ruinous competition b. Business thrives on competition c. Demand has caught up with supply d. If you can"t stand the heat, you should stay out of the kitchen

Q: The economic principles relating to the productivity of real estate help us mainly in thea. Income approach to value b. Prediction of market trendsc. Understanding of government d. Analysis of expenses

Q: Studies of population, the national labor force, and disposable income are often used to predict thea. Lending policy of government b. Demand for real estate c. Supply of real estated. None of the above

Q: Real estate markets are considered to be imperfect because a. Buyers and sellers are not always well-informed b. Each property is relatively unique c. There is imperfect competition for any one property d. All of the above

Q: As communities grow, they tend to develop patterns of land use forminga. Linear strips b. Concentric or segmented ringsc. Transportation nodes d. Any of these may apply

Q: Neighborhood trends help the appraiser decide upona. The highest and best use c. Both a and bb. How to interpret the d. None of the above market data

Q: Neighborhood quality is generally rated by comparing the characteristics of the subject neighborhood with those of a. Nearby neighborhoods b. Inferior and superior neighborhoods c. Neighborhoods with competitive properties d. None of the above

Q: The boundary of a neighborhood might logically be set by a. Jurisdictional boundaries b. Well-defined physical barriers c. A sharp change in economic benefits d. Any of the above

Q: To capitalize income, you could a. Divide the net income by the capitalization rate b. Multiply the income by a cap rate c. Divide the net income into the rate d. Change the method of accounting

Q: Which approach to value is emphasized where there are good comparable sales available? a. Sales comparison approach b. Cost approach c. Income approach d. A combination of all the above

Q: Which of the following mandates the use of a Self-Contained Appraisal Report?a. Complete appraisal b. An appraisal reviewc. A retrospective appraisal d. None of the above

Q: As most often used in appraisal practice, market value has several vital criteria. Which of the following is not included?a. A good location b. The most probable pricec. Open market exposure d. Informed parties

Q: Which of the following are private rather than public limitations to real property rights?a. Zoning b. Health and safety lawsc. Taxes d. Deed restrictions

Q: A rectangular parcel of land containing five acres has 660 feet of frontage on a road. What is its depth?a. 495 feet b. 660 feetc. 330 feet d. None of the above

Q: Which of the following is not among the standard ways of describing land for legal purposes?a. Lot, block, and tract b. Assessor's parcel numberc. U.S. government survey d. Metes and bounds

Q: Use restrictions include those imposed bya. Government controls b. Private agreementsc. Market standards d. All of the above

Q: Which of the following is excluded from the privately owned "bundle" of rights?a. Right to escheat b. Right to ingress and egressc. Right to encumber d. Right to sell or convey

Q: In determining whether an item is a fixture and, therefore, part of the real estate, which of the following is the least important? a. The value to the buyer or seller b. The intent of the party or parties c. The degree of annexation or attachment d. The extent of adaptation to use

Q: The terms real estate and real property are used to describea. The physical land b. The rights to the use c. Both of the above and buildingsd. Neither of the above of the land

Q: Which type of appraisals generally requires a state license or certification? a. Those made to support federally-insured real estate loans b. Private income tax appraisals c. Appraisals made to settle divorce cases d. All appraisals

Q: In a general sense, the term value means: a. The average utility of an object b. A good buy c. The relative worth of something d. The worth, usefulness, or utility of an object to someone for some purpose

Q: The "ASA" designation offered by the American Society of Appraisers is associated witha. Expertise in all real estate fieldsb. Accredited Senior Appraiser c. Accredited membershipd. None of the above

Q: An appraiser should have no undisclosed financial interest in the results of the appraisal. This standard is intended to ensurea. Confidentiality b. Impartialityc. Competency d. Cost effectiveness

Q: The value of the lessee's interest in real property can be defined or calculated as a. The remainder estate b. The value of the capitalized income c. The difference between the contract and market rent, capitalized over the life of the lease d. The leased fee

Q: When appraising a condominium unit, the appraiser most commonly emphasizes thea. Sales comparison approach b. Income approach c. Capitalization methodd. Gross income multiplier method

Q: All of the following represent unique problems in appraising planned unit developments except a. The handling of recreation facilities in the cost approach b. A lack of vacant land sales c. Verifying the zoning d. Adjusting for differences in homeowners' associations

Q: Older housing units built without side yards or common areas are calleda. Condominiums b. Airspace unitsc. Row houses d. Town houses

Q: The statement of limiting conditions is intended to a. Clarify the assumptions made by the appraiser b. Limit the appraiser's legal liability c. Define the rights of disclosure d. All of the above

Q: Certain lending agencies performing federally related appraisals may be required to go beyond the scope of USPAP by a. Conforming to even stricter standards b. Showing appropriate deductions for proposed construction, partially leased buildings, and tracts with unsold units. c. Be based on the definition of market value set forth in the regulation of the agency d. All of the above

Q: Which type of appraisal report is the most formal?a. The form report b. The narrative reportc. The letter report d. None of these

Q: The appraiser's opinion of the highest and best use in a written appraisal is required a. In all market value appraisals b. At the request of the intended users c. As an added assignment d. None of the above

Q: The Uniform Standards of Professional Appraisal Practice (USPAP) a. Has been adopted by all leading appraisal groups b. Must be complied with in most federally-related appraisals c. Must be adhered to by all state licensed/certified appraisers d. All of the above

Q: Whether a Self-Contained, Summary, or Restricted Use appraisal report is used should depend upon all of the following except: a. The intended use and intended user(s) of the appraisal b. Which value approaches were used c. A mutual understanding of the differences between the reporting options d. The detail of disclosure needed

Q: Which of the value approaches is considered to be the most direct?a. Cost b. Incomec. Sales comparison d. A combination of the above

Q: The applicability of any approach depends upon all the following except a. The intended use of the appraisal b. How many approaches have been applied c. The strengths and weaknesses of the approach d. The actions of buyers and sellers

Q: Reconciliation of the value indications produced in an appraisal helps the appraiser a. Arrive at a final conclusion of value b. Decide on the appraisal format c. Average the value conclusions d. None of the above

Q: What is the net income ratio of a property where the potential gross income is $110,000; the vacancy and collection loss is estimated at $10,000; and the operating expenses are estimated at $30,000?a. 30% b. 142%c. 100% d. 70%

Q: Of the following alternative projects, one represents the highest and best use of a particular site being analyzed. Select the use that returns the greatest annual net income to the land after deducting a 10% return to the building cost.UseBuilding CostAnnual Net IncomeOffice Building$500,000$76,000Shopping Center$700,000$98,000Apartment$800,000$104,000a. Office building b. Shopping centerc. Apartment d. None of the above

Q: Which capitalization technique analyzes the cash flow after debt service, rather than the total net income?a. Direct capitalization b. Building residualc. Land residual d. Equity residual

Q: A new income property is being appraised and you have very few improved sales, and no vacant land sales to estimate land value. Assume the following, and solve for the land value, using the land residual capitalization method.Net operating income$64,000Building cost$400,000Interest rate8%Recapture rate2%a. $400,000 b. $300,000c. $100,000 d. $500,000

Q: If 60% financing is available on a certain income property at a loan constant of 11%, what equity cash-on-cash return is available where the overall rate is 10.6%?a. 5.0% b. 10.0%c. 6.5% d. 1.5%

Q: There are several types of rates used in income capitalization. Which of the following is composed of interest and recapture in separately determined amounts?a. Interest rate b. Overall ratec. Composite rate d. None of these

Q: Assume that a property has $130,000 gross effective income and operating expenses of $30,000. There is a 30 year loan commitment on the property with level payments of $68,000 payable annually. How much is the equity cash flow on this property?a. $130,000 b. $ 98,000c. $100,000 d. $ 32,000

Q: You are deriving a gross income multiplier in the appraisal of a 14-unit apartment building. Market data is as follows:16 units sold for $1,200,000 with a gross income of $150,000.12 units sold for $ 960,000 with a gross income of $120,000.4 units sold for $ 480,000 with a gross income of $ 48,000.What GIM is suggested for the property under appraisal?a. 10 b. 9c. 12 d. 8

Q: The cost of a new roof should be considered a a. Variable expense b. Fixed expense c. A replacement reserve item d. Capital deduction

Q: An apartment building has a potential gross income of $100,000 per year, vacancy and collection losses of 5%, and operating expenses of $35,000. What is the indicated value, if the net operating income is capitalized at 8%?a. $1,000,000 b. $ 750,000c. $ 812,500 d. $1,187,500

Q: Under one kind of lease, the tenant pays a minimum rent or a percentage of the gross sales, which ever is the larger amount. In such a lease, any amount over the minimum is often described asa. Excess rent b. Overage rentc. Contract rent d. Percentage rent

Q: A 10-unit property has a gross income of $8,000 per month. What is its probable value if the appropriate annual GIM is 8.0, based on analysis of comparable sales? a. $ 768,000 b. $1,050,000 c. $ 640,000 d. $ 64,000

Q: The income remaining after vacancy and credit losses are deducted from gross potential income is known as the a. Net to operations b. Net income c. Effective gross income d. None of the above

Q: By the cost approach, estimate the value of a 40 year old, 2,000 square foot house, based on the following:House replacement cost $ 80/SF Garage cost (400 square feet) $ 30/SF Patio and yard improvements cost $15,000Physical deterioration $27,000Functional obsolescence (poor floor plan)$20,000Land value from comparable sales $100,000As indicated by the cost approach, the value of the described property isa. $260,000 b. $287,000c. $200,000 d. $240,000

Q: A 20-year old property sells for $240,000. If the lot is worth $100,000 and the cost new for the building is $200,000, what is the annual rate of depreciation as indicated by the market?a. 1.5% b. 2%c. 5% d. 1/2%

Q: The age-life method of estimating accrued depreciation suggests that a. The age of the building depends on its life b. Annual value loss is proportional to the total life expectancy c. All buildings depreciate at the same rate d. Loss in value depends on market studies

Q: An environmental study shows that nearby toxic wastes have affected the neighborhood market. What kind of loss in value might be experienced by the improved properties? a. Physical deterioration b. Economic or external obsolescence c. Functional obsolescence d. Detrimental obsolescence

Q: Which type of value loss is attributed to causes lying within the property? a. Functional obsolescence b. External obsolescence c. Economic obsolescence d. None of the above

Q: Also referred to as diminished utility, accrued depreciation is defined for appraisal purposes as a. Deductions from value b. Total loss in value from cost as if new c. Original cost less book cost d. None of the above

Q: For a new residential structure being developed, the direct construction costs have been estimated at $140,000. If certain indirect costs of 15%, and a 25% builder's overhead and profit are added, what is the total construction cost for this building? Assume that the profit applies to both direct and indirect costs given.a. $201,250 b. $161,000c. $140,000 d. $175,000

Q: A reliable cost manual suggests cost figures and adjustment factors for a house like that diagramed below. Using the sketch, and the following data, estimate the total replacement cost of these improvements:Base cost $62/SFArea-shape multiplier1.01Extra equipment$9,000Local cost multiplier1.04Garage$20/SFCurrent cost multiplier1.05Driveway, walks $5,000Answer (choose nearest to correct answer):a. $130,000 b. $116,000c. $138,000 d. $220,000

Q: Which of the following is considered an indirect cost? a. Labor costs b. Material and equipment costs c. Interest on construction financing d. Subcontractors' fees

Q: Of the four methods of estimating cost, which is the one most often used by appraisers? a. Index method b. Unit-in-place method c. Comparative square foot method d. Quantity survey method

Q: Which of the following is not a typical reason for using the cost approach? a. To appraise unusual or special-use properties b. To appraise older tract homes c. To check against the values estimated from the other approaches d. To suggest the value of new property

Q: As used in appraisal, all cost estimates relate toa. "Book" costs b. Wholesale costsc. Cost of materials only d. Typical costs on the date of value

Q: A lower density zoning code in a high rent apartment neighborhood has changed the usual comparison units and rules of thumb for land value. If vacant apartment-zoned lots could formerly be developed to 12 units each, but now can be developed to only 6 units, what value change is likely? a. A decrease in the value per square foot b. An increase in the value per buildable unit c. Both a and b are likely d. Neither a or b is likely

Q: To adjust the sales price of a comparable sale with a 10% inferior location, you should a. Add 10% to the price b. Subtract 10% from the price c. Multiply the price by 10% d. None of the above