| A loss in value because of lesser value homes being built in an area would be an example of the principal of: | regression |
| A political factor influencing value would be: | rent control |
| A property has a net income of $30,000. An appraiser decides to use a 12 percent capitalization rate rather than ten. This will result in: | a $50,000 decrease in appraised value |
| A duplex that rents for $1,250, is in an area of a smaller duplex in similar condition that rents for $440 per unit and just sold for $132,000. Using this information, the larger duplex would have a value of: | $187,000 |
| An appraisal is valid for: | the day the appraisal is completed |
| An appraiser making an appraisal for a lender would be more interested in: | neighborhood forces outside the property itself |
| An appraiser received figures from a CPA on past rent receipts and operating expenses. The appraiser should: | adjust the figures provided for future occurrences |
| An appraiser would NOT define excess land as any land: | that produces excess income |
| An appraiser would NOT determine cost of replacement by using: | observed condition method |
| An appraiser using the cost approach to value, has the most difficulty in determining the: | accumulated depreciation |
| An element that does NOT create value is: | cost |
| Depreciation is divided into three types: | physical deterioration, functional obsolescence, and economic obsolescence |
| Depreciation is MOST important to an appraiser using the: | cost approach |
| Ellen's home recently appraised at $105,000, it has depreciated 30 percent in the three years since it was purchased. What was the original cost? | $150,000 |
| Functional obsoleescence would NOT be caused by: | the proximity of a nuisance |
| Functional obsolescence consists of: | loss of value due to defective or outdated building design |
| In appraising a building, the appraiser would consider all of the following EXCEPT: location, tax assessment, vacancy factor or replacement cost | tax assessment |
| In preparing an estimate of value for a twenty five unit apartment building, an appraiser will MOST likely use the: | income approach |
| In using the market comparison approach, the appraiser assumes: | no two properties are identical |
| Kristina bought a house for $60,000. Six months later she had to move and sold it for $54,600. Her percentage loss is calculated by using which of the following? | $5400 divided by $60,000 |
| Land and improvements MUST be appraised separately when using the: | cost approach |
| Lash listed his property for sale at $100,000. If his cost was 80% of the listed price, what will his percent of profit on the investment be, if it sells for the listed price? | 25% |
| Loss of value due to negligent care of the property is called: | physical deterioration |
| Market value is BEST defined as: | the maximum price a willing informed buyer would pay to a willing informed seller |
| Razing a hotel to build an office building is MOST likely an example of the principle of: | highest and best use |
| The advisability of including a tennis court with a planned apartment building MAY be determined by the principle of: | contribution |
| The appraisal of a quality single-family residence would be LEAST influenced by: | projected rental income |
| The appraisal of real estate is based upon three approaches: | market data; replacement cost; income |
| The approach that considers amenity values is the: | market comparison approach |
| The existence of a water filtration plant in a residential area, may subject homes in the area to: | economic obsolescence |
| The first step in appraising unimproved property WOULD be to determine the: | highest and best use |
| The gradual decay or decline in value of property from natural causes is called: | depreciation |
| The last lot in a subdivision sold for 3 times the price paid for the first lot. This is MOST likely to be an example of: | suppy and demand |
| The market comparison method has the LEAST validity: | when there have been few sales |
| The market data approach to value is normally used in estimating the value of: | vacant land |
| The MOST essential approach to value in residential appraisals is considered to be the: | market data approach |
| The principle of supply and demand predicts: | demand increasing when price decreases |
| The purpose of the income approach is to: | convert net income to market value |
| The reason that the gross rent multiplier is NOT an accurate estimate of value is that it fails to consider: | unusual expenses |
| To estimate effective gross income, one would deduct which of the following from the calculation of gross income for the property? | a vacancy and collection loss factor |
| Using all 3 methods of appraisal and assigning different weights to each method is known as: | reconciliation |
| Value is BEST described as: | the present worth of future benefits |
| What is the function of a real estate appraiser? | to estimate market value |
| Which method would be used to determine the present value of future income? | income approach |
| Which method would MOST likely be used by licensees in estimating the value of single-family residences? | market comparison |
| Which of the following is NOT considered in the market data approach to value? | acquisition cost to present owner |
| Which of the following is based on historical cost and reduced by the accumulated depreciation for tax or accounting purposes? | book value |
| Which of the following refers to "economic life'? | that period during which the building contributes value to the land |
| With fixed rents and a capitalization rate of 8 percent, an increase in taxes of $4,000 would result in the value of the a property: | decreasing by $50,000 |
Which of the following approaches of value would be given the greatest weight in the appraisal of a residential property?
The market data or sales comparison approach is the most effective and most weighted approach in the appraisal of residential property.
What is the most used approach for an appraisal?
Sales comparison.
This is the most common method, where appraisers value a property based on the recent selling prices of similar properties in the same neighborhood.
Which method of appraisal is most often used for appraising income producing properties?
How the Income Approach Works. The income approach is typically used for income-producing properties and is one of three popular approaches to appraising real estate. The others are the cost approach and the comparison approach.
What method of appraising would be most effective when appraising a vacant parcel of land?
The most reliable procedure for arriving at a land value estimate is sales comparison. Sales of similar vacant parcels are analyzed, compared and related to the land being appraised.