©2001, Educational Textbook Company
1. The most common definition of
appraisal is:
a. an op=
inion
of value
b. an ab=
solute
amount
c. an
uneducated guess
d. all o=
f the
above
2. In a bundle of rights each
“stick” is:
a. made =
of oak
b. the
equivalent of a dollar
c. a rig=
ht
d. none =
of the
above
3. Non-possessory interests are kno=
wn
as:
a.
encumbrances
b. estat=
es
c. lease=
hold
estates
d. worth=
less
4. A lien is:
a. a fin=
ancial
encumbrance
b. an in=
terest
held by a creditor
c. a bui=
lding
that doesn’t stand upright
d. both =
a and
b
5. A non-exclusive right to use som=
eone
else’s property for a particular purpose is known as:
a. gross=
ly
unfair
b. an
embankment
c. an ea=
sement
d. tresp=
assing
6. Eminent domain is the power of t=
he
government to:
a. take
private property for public use
b. arrest
spies
c. set l=
ending
rates
d. none =
of the
above
7. Ad Valorem taxes are based on the
value of:
a. perso=
nal
property
b. real =
estate
c.
recreational vehicles
d. all o=
f the
above
8. The monetary worth of property,
goods or services to buyers and sellers is the common definition of:
a.
desirability
b. value=
c. liquid
assets
d. all o=
f the
above
9. The ability to will, lease, give=
or
sell a property is known as:
a. trans=
ferability
b. flexi=
bility
c. liqui=
dity
d. bankr=
uptcy
10. Direct costs refer to the costs=
of:
a. loans=
to
finance an improvement
b. mater=
ial
and labor used to build an improvement
c. bribi=
ng
officials for a building permit
d. all o=
f the
above
11. The amount of property for sale=
in
a given market combined with the amount of property buyers want to purchase=
at
that price is known as the principle of:
a. give =
and
take
b. suppl=
y and
demand
c. scarc=
ity
and abundance
d. none =
of the
above
12. The first stage in the developm=
ent
cycle is called the:
a. finan=
cing
stage
b. devel=
opment
stage
c. matur=
ity
stage
d. decli=
ne
stage
13. Surplus productivity is a way of
measuring the value of land:
a. that =
has
been improved
b. that =
is
left over after development
c. that =
is
vacant
d. none =
of the
above
14. Value estimates are always made=
as
of a specific date called:
a. month=
lies
b. the m=
arket
date
c. the
effective date of appraisal
d. none =
of the
above
15. A statement that specifically
limits the application of the conclusions contained in a report is called a=
(n):
a. limit=
ing
condition
b. assum=
ption
c. black=
out
clause
d. all o=
f the
above
16. An estimate of value of vacant
land, excluding any existing or proposed improvements is called:
a. a dri=
ve-by
appraisal
b. data
analysis
c. a site
valuation
d. all o=
f the
above
17. What approach assumes that the
value of improved property is indicated by the value of the site, plus the =
cost
of improvements, minus depreciation?
a. Cost
approach
b. Income
approach
c. Gross
multiplier
d. All o=
f the
above
18. With the sales comparison appro=
ach
a property’s value is compared to:
a. the v=
alue
of other similar properties in the market
b. the v=
alue
of unimproved properties in adjoining neighborhoods
c. the c=
ost of
tearing down the structure
d. sales=
in
foreign markets
19. Analyzing the appraisal problem,
selecting the appropriate method of valuation, and giving it the most weigh=
t is
called:
a. an or=
al
report
b. resti=
tution
c.
reconciliation
d. all o=
f the
above
20. A legal description of property=
is
one that is adequate to:
a. ident=
ify
the properties exact boundaries
b. ident=
ify
the owners of the property
c. satis=
fy
lawyers the property is free of liens
d. all o=
f the
above
21. An identifiable, fixed position
from which measurements can be taken is called:
a. a mea=
suring
thingy
b. a ref=
erence
point
c. global
satellite positioning system
d. none =
of the
above
22. Benchmarks are:
a. a uni=
t of
measure based on the length of a park bench
b. survey
markers set in concrete
c. a Ger=
man
form of currency
d. none =
of the
above
23.The east-west lines running para=
llel
to the base line are called:
a. flat =
lines
b.
c.
township/tier lines
d. all o=
f the
above
24. Volume is the size of an object=
in
how many dimensions?
a. Two
b. Three=
c. Eight=
d. None =
of the
above
25. A triangle where two of the sid=
es
meet at a right angle is called a:
a. right
triangle
b. left-=
sided
triangle
c. compl=
ex
figure
d.
appraiser’s triangle
26. What number do you divide a num=
ber
into to get a reciprocal?
a. 1
b. 2
c. 100
d. 10000=
27. Interest earned on both princip=
al
and accrued (paid) interest is called:
a. a big
payday
b. an an=
nuity
c. compo=
und
interest
d. none =
of the
above
28. According to market trend data,
what two forces interact to affect value?
a. Socia=
l and
economic
b.
Governmental and environmental
c. Trend=
y and
superficial
d. Both =
a and
b
29. A property that is similar to t=
he
subject property in certain characteristics is called:
a. a rel=
ative
property
b. a
comparable property
c. a
reasonable facsimile property
d. a twi=
n
30. When a neighborhood includes on=
ly
one type of land use, it is sometimes referred to as:
a. bland=
b. a ghe=
tto
c. a dis=
trict
d. all o=
f the
above
31. Frontage is the length of a
property’s boundary where it adjoins a:
a. stree=
t or
body of water
b.
neighbor’s property or fence
c. church
property or school district
d. all o=
f the
above
32. Sub-structure data:
a. is al=
so
known as foundation data
b. is
information about the parts of the building below grade level.
c. inclu=
des
basement or crawl space
d. all o=
f the
above
33. EER stands for:
a. Equal
Economic Reciprocal
b. Energy
Efficiency Ratio
c. Elder=
ly
Entertainment Room
d. none =
of the
above
34. The type of data used in the co=
st
approach to determine the replacement or reproduction cost of the subject
property is called:
a. cost =
data
b. condi=
tional
data
c. copyc=
at
data
d.
guestimation data
35. To qualify as the highest and b=
est
use, the use must result in:
a. church
ownership
b. the h=
ighest
value
c. the m=
ost
attractive property on the block
d. none =
of the
above
36. The principle of anticipation
states that the value of property is affected by the:
a. poten=
tial
future benefits of ownership
b.
buyer’s enthusiasm
c. stock
market
d. all o=
f the
above
37. A use that is legally nonconfor=
ming
is allowed to continue even though what laws have changed?
a. Liquo=
r
b. Tax
c. Zonin=
g
d. None =
of the
above
38.The principle of consistent use
states that:
a. both =
land
and improvements must be appraised for the same use
b. the
property must have been consistently occupied since construction
c. the u=
se of
the property must be consistent with the builders original intention
d. all o=
f the
above
a. throw=
-away
land
b.
non-conforming land
c. exces=
s land
d. none =
of the
above
40. What method is considered the m=
ost
important and reliable approach to land valuation?
a. Sales
comparison
b. Alloc=
ation
c. Extra=
ction
d. None =
of the
above
41. An attached house is one that: =
a. is not
connected to any other property
b. share=
s one
or more walls
c. often
involves a party wall agreement
d. both =
b and
c
42. A three-quarter bath has:
a. a tub=
, a
sink and a toilet
b. a sho=
wer, a
sink and a toilet
c. only =
a sink
and a toilet
d. none =
of the
above
43. A horizontal piece at the botto=
m of
a window is a:
a. found=
ation
b. joist=
c. sill<= o:p>
d. none =
of the
above
44. A roof that has inclined surfac=
es
that rise from every wall of the house is called a:
a. leaky=
roof
b. hip r=
oof
c. point=
y roof
d. all o=
f the
above
45. In what type of framing is larg=
er
size lumber used so the framing members can be spaced
further apart?
a. Shodd=
y
b. Ballo=
on
c. Post =
and
beam
d. None =
of the
above
46. The “skin” that is
attached to the frame of the house is called:
a. epide=
rmis
b. sheat=
hing
c. paint=
d. all o=
f the
above
47. The quantity of heat required to
raise one pound of water one degree Fahrenheit is called:
a. a BTU=
b.
thermonuclear dynamics
c. the E=
ER
d. none =
of the
above
48. The difference in value between=
the
cost (new) of the improvements and their current value is called:
a.
depreciation
b.
appreciation
c.
desalination
d. none =
of the
above
49. Estimating the cost to create an
exact replica of improvements at current prices is called:
a. repla=
cement
cost
b.
reproduction cost
c.
entrepreneurial profit
d. all o=
f the
above
50. Multiplying the length times the
width of a building determines the:
a. square
footage
b. size =
of the
mortgage
c. numbe=
r of
rooms
d. none =
of the
above
51. What method requires the apprai=
ser
to measure the quantities of various components, such as foundation, floor,
walls, roof, etc.?
a. Cost =
per
unit
b. Unit =
in
place
c. Market
analysis
d. None =
of the
above
52. Estimating the reproduction cos=
t of
a building whose original construction cost is unknown is:
a. impos=
sible
b. illeg=
al
c. calle=
d cost
index trending
d. none =
of the
above
53. Depreciation caused by design
defects is known as :
a. funct=
ional
ambiguity
b. funct=
ional
obsolescence
c. compe=
tency
obsolescence
d. inade=
quacy
54. Estimating the amounts of each =
type
of depreciation separately is called:
a. the
observed condition method
b. the
breakdown method
c. the
capitalization method
d. both =
a and
b
55. According to what principle wil=
l a
buyer not pay more for a property than it would cost to acquire a substitute
property of equal utility?
a. Compa=
rison
shopping
b.
Substitution
c.
Comparability
d. None =
of the
above
56. When the appraiser estimates wh=
ere
within the range of values a subject property’s value lies, it is cal=
led:
a. recon=
ciling
the value indicators
b. data
collection check
c. gross
adjustment
d. all o=
f the
above
57. The interest of the owner of le=
ased
property is called the:
a.
owner’s prerogative
b. royal
leasing privilege
c. lease=
d fee
d. none =
of the
above
58. The technique for measuring the effect=
on
value that is caused by differences in a single element of comparison is
called:
a. relat=
ively
simple analysis
b. paire=
d data
analysis
c.
semi-comparable analysis
d. none =
of the
above
59. In relative comparison analysis=
the
adjustment values are expressed in terms of:
a. yen
b. perce=
ntages
c. value
(superior, inferior, etc.)
d. all o=
f the
above
60. What type of adjustment is the =
net
sum of positive and negative adjustments?
a. Net
b. Posi-=
neg
c. False=
d. Quasi=
61. What term refers to the repayme=
nt
of capital return of the investment?
a. Usury=
b.
Reinvestment
c. Recap=
ture
d. None =
of the
above
62. In what type of capitalization =
does
the appraiser analyze all of the anticipated cash flows over the life of the
investment?
a. Direc=
t
b. Yield=
c. Liqui=
d
d. All o=
f the
above
63. The reciprocal of the
capitalization rate is called the:
a. multi=
plier
b. facto=
r
c.
anti-capitalization rate
d. eithe=
r a or
b
64. The total amount of revenue a
property is capable of producing at full capacity is called:
a. poten=
tial
gross income (PGI)
b. effec=
tive
gross income (EGI)
c. satur=
ated
cash income (SCI)
d. none =
of the
above (NOA)
65. An item that has a life span th=
at
is less than the expected life of the building is called:
a. cheap=
b. a sho=
rt
lived component
c. an in=
terim
appliance
d. a bad
investment
66. The amount of income available =
to
the owner after the mortgage lender has been paid its portion of the net
operating income is called:
a. pre-t=
ax
cash flow
b. equity
dividend
c. gravy=
d. both =
a and
b
67. A statement of income and expen=
ses
used for income capitalization in appraisal is:
a. a
reconstructed operating statement
b. an in=
come
testimony statement
c.
capitalization referendum
d. none =
of the
above
68. In the building residual techni=
que
the appraiser independently estimates the value of the land or site and uses
what method to find the value of its improvements?
a. Debt
coverage method
b. Resid=
ual
method
c. Band =
of
investment method
d. Easie=
st
possible method
69. In what step of the appraisal
process does the appraiser analyze the data and reasoning that went into the
value indicators in order to arrive at a single indication of value?
a. Initi=
al
b.
Reconciliation
c. Calcu=
lation
d. None =
of the
above
70. The
quality of a value indicator is determined by its:
a. level=
of
accuracy
b. relev=
ance
to the appraisal problem
c. cost =
to the
client
d. both =
a and
b
71. Accuracy of data is measured by=
:
a. how w=
ell it
has been verified
b. indep=
endent
verifiers
c.
mathematical precision
d. all o=
f the
above
72. The final value estimate, state=
d in
a single dollar amount is called the:
a. point
estimate
b. last =
word
c. absol=
ute
value
d. none =
of the
above
73. The appraiser’s estimate =
of
the range in which the property’s value is most like to fall is called
a(n):
a. guess=
b. range=
value
c. point=
value
d. all o=
f the
above
74. To reflect the input numbers wi=
th
the highest degree of precision answers should be:
a. fudge=
d
b. triple
checked
c. round=
ed
d. all o=
f the
above
75. The means by which the
appraiser’s value conclusions are communicated to the client and the
other users of the report is called the:
a. lette=
r of
intent
b. appra=
isal
report
c. USPAP=
d. none =
of the
above
76. What type of USPAP requirements=
do
not allow for departure from the Standards rule?
a. Speci=
fic
b. Bindi=
ng
c. Stric=
t
d. Silly=
77. Exercising the departure provis=
ion
results in a:
a. compl=
ete
appraisal report
b. limit=
ed
appraisal report
c. nulli=
fied
appraisal report
d. all o=
f the
above
78. What type of report may only be
used by the client and for one particular purpose?
a.
Self-contained
b. Restr=
icted
c. Writt=
en
d. Targe=
t
79. A brief letter addressed to the
appraisal client and signed by the appraiser is called a:
a. court=
esy
letter
b. greet=
ing
card
c. lette=
r of
transmittal
d. lette=
r of
intent
80. A group of individually owned
properties that share common ownership or use of certain areas or facilities
within the development is called a:
a. towns=
hip
b. common
tenancy
c. Plann=
ed
Unit Development (PUD)
d. all o=
f the
above
&nb=
sp; =
81. The appraiser’s judgment =
as
to a building’s remaining economic life is called:
a.
chronological age
b. relat=
ive
age
c. effec=
tive
age
d. none =
of the
above
82. In vertical subdivision, what is
separated from ownership of the rest of the property?
a. The
subsurface
b. The s=
urface
c. The a=
ir
space
d. All o=
f the
above
83. In community property:
a. common
areas of a property are owned by an entire community
b. a hus=
band
and wife share interest equally in the property
c. a hus=
band
and wife do not have an equal interest in the property
d. none =
of the
above
84. A lien gives the lienholder the
right to:
a. one-q=
uarter
ownership of the liened property
b. run
electrical power lines across the liened property
c. sell =
the
liened property to settle a debt
d. none =
of the
above
85. An easement in gross:
a. benef=
its a
person or legal entity
b. does =
not
benefit a parcel of land
c. is an
unattractive easement
d. both =
a and
b
86. When title to property is passe=
d to
a trustee who manages the property for a beneficiary it is called:
a. a sli=
ck
deal
b. a tru=
st
c. a
partnership
d. a man=
aged
care facility
87. In a condominium project, each
living unit (air space) in a complex is:
a. owned
separately in a fee simple
b. rente=
d week
by week
c. corpo=
rate
owned and leased to private parties
d. none =
of the
above
88. USPAP stands for:
a.
b. Unifo=
rm
Standards of Professional Appraisal Practice
c. Unifo=
rm
Standards of Pre-Approved Principles
d. none =
of the
above
89. The education, testing and
experience requirements for appraisers is the concern of the:
a. Certi=
fication
Requirements Board (CRB)
b. Broth=
erhood
of United Appraisers (BUA)
c. Appra=
isal
Qualifications Board (AQB)
d. none =
of the
above
90. The two types or classes of
appraisal certification are:
a. gener=
al and
residential
b. major=
and
general
c. limit=
ed and
broad
d. none =
of the
above
91. Advisory opinions:
a. do not
establish new standards
b. do not
interpret existing standards
c. merely
indicate the advice and opinion of the Appraisal Standards Board
d. all o=
f the
above
92. The conduct, management, confid=
entiality
and record keeping obligations of appraisers is:
a. cover=
ed by
the Ethics Rule
b. polic=
ed by
the Ad Hoc Committee
c. volun=
tary
d. all o=
f the
above
93. What prohibits appraisers from
accepting assignments for which they are not qualified?
a. Depar=
ture
Provision
b. Compe=
tency
Rule
c.
Jurisdictional Exception
d.
Supplemental Standard
94. Which of the following accepts
deposits from its account holders?
a. Depos=
itory
institution
b. Fly by
night institution
c.
Non-institutional lender
d. None =
of the
above
95. Freddie Mac, Fannie Mae and Gin=
nie
Mae are:
a. relat=
ed by
blood
b. secon=
dary
mortgage markets
c. prima=
ry
lenders
d. none =
of the
above
96. Which organization was designed=
to
provide for the orderly liquidation of the failed S&Ls, to impose
regulations that would prevent similar crisis in the future, and established
the RTC?
a. Dept.=
of
Water and Power (DWP)
b. Dept.=
of
Housing and Urban Development (HUD)
c. Finan=
cial
Institutions Regulatory Agencies (FIRREA)
d. None =
of the
above
97. The central banking system for =
the
a. commo=
nly
referred to as “the fed”
b. the F=
ederal
Reserve System
c.
d. both =
a and
b
98. To take over the responsibiliti=
es
of the disbanded Federal Home Loan Bank Board, the FIRREA created the:
a. FDIC<= o:p>
b. OCC
c. OTS
d. TCB
99. The Appraisal Standards Board (=
ASB)
develops, interprets and amends:
a. the U=
niform
Standards of Professional Appraisal Practice
b. the
constitution of the
c. chart=
ers
for depository institutions
d. all o=
f the
above
100. Transactions with a value less
than a certain minimum amount:
a. are c=
alled
deminimus value
b. do not
require the services of an appraiser
c. are s=
et by
the FFIRA as being valued under $250,000
d. all o=
f the
above
Real Est=
ate
Appraisal Answer Key - Final A
1. a
2.
c
3.
a
4.
d
5.
c
6.
a
7.
b
8.
b
9.
a
10. b
11. b
12. b
13. a
14. c
15. a
16. c
17. a
18. a
19. c
20. a
21. b
22. b
23. c
24. b
25. a
26. a
27. c
28. d
29. b
30. c
31. a
32. d
33. b
34. a
35. b
36. a
37. c
38. a
39. c
40. a
41. d
42. b
43. c
44. b
45. c
46. b
47. a
48. a
49. b
50. a
51. b
52. c
53. b
54. d
55. b
56. a
57. c
58. b
59. c
60. a
61. c
62. b
63. d
64. a
65. b
66. d
67. a
68. b
69. b
70. d
71. a
72. a
73. b
74. c
75. b
76. b
77. b
78. b
79. c
80. c
81. c
82. d
83. b
84. c
85. d
86. b
87. a
88. b
89. c
90. a
91. d
92. a
93. b
94. a
95. b
96. c
97. d
98. c
99. a
100. d