front 1 An appraisal is a conclusive statement of value based on the seller's desired selling price. | back 1 false |
front 2 The information used to perform an appraisal is divided into two basic classes: general data and specific data. | back 2 true |
front 3 Maximum value is created when a property is in harmony with its surroundings under the principle of conformity. | back 3 true |
front 4 According to the principle of change, value is created by the expectation that certain events will occur. | back 4 false |
front 5 An appraiser using the cost approach method estimates the current cost of constructing buildings and improvements on the land. | back 5 true |
front 6 The sales comparison approach is also called the market data approach. | back 6 true |
front 7 An appraisal is | back 7 an opinion of value based on supportable evidence and approved methods. |
front 8 At the risk of seeming boring or monotonous, properties will still be at their highest value if the neighborhood exhibits | back 8 conformity. |
front 9 The term reconciliation refers to which of the following? | back 9 Analyzing the results obtained by the different approaches to value to form an opinion of value |
front 10 What is the key to an accurate appraisal? | back 10 Methodical collection and analysis of data |
front 11 The work of an appraiser should comply with | back 11 the Uniform Standards of Professional Appraisal Practice. |
front 12 If a property's annual net income is $24,000 and it is valued at $300,000, what is its capitalization rate? | back 12 8% |
front 13 The appraised value of a residence with four bedrooms and one bathroom would probably be reduced because of | back 13 functional obsolescence. |
front 14 An appraiser asked for an opinion of the value of an existing shopping center would probably give the MOST weight to which approach to value? | back 14 Income approach |
front 15 Which of the following is NOT used by an appraiser applying the income approach to value? | back 15 Accrued depreciation |
front 16 The market value of a parcel of real estate is | back 16 an estimate of the most probable price it should bring. |
front 17 Appraisals are required for | back 17 FHA and all federally related loans. |
front 18 A sales associate or appraiser trying to estimate the market value of a property would be seeking | back 18 the probable price the property will bring |
front 19 A developer buys the last five vacant lots in a subdivision and constructs a large, expensive home on each lot. The homes sell for what are record-setting high prices for the area. The owners of the older, lesser-valued houses in the neighborhood may find that the values of their homes are affected by what principle? | back 19 Progression |
front 20 Which body established the Uniform Standards of Professional Appraisal Practice (USPAP)? | back 20 The Appraisal Standards Board |
front 21 An appraiser is responsible for | back 21 forming an opinion of value. |
front 22 The amount of money a property is likely to command in the marketplace is its | back 22 market value. |
front 23 Which of the following BEST describes a capitalization rate? | back 23 Rate of return an income property will produce |
front 24 All of the following are characteristics that contribute to value EXCEPT | back 24 obsolescence. |
front 25 A homeowner constructs a five-bedroom brick house with an indoor pool in a neighborhood of modest two-bedroom and three-bedroom frame houses on narrow lots. The value of this house is MOST likely to be affected by what principle? | back 25 regression |
front 26 There are two vacant adjacent lots in an area zoned for commercial use, each worth approximately $50,000. If their owner sells them as a single lot, however, the combined parcel will be worth $120,000. What principle does this illustrate? | back 26 Plottage |
front 27 Once the appraiser has considered the three methods of valuation of real estate, the final step in the appraisal process is | back 27 reconciliation. |
front 28 Which approach to value is the MOST reliable for appraising a single-family home? | back 28 Sales comparison approach |