Question: Appraiser Dominic determines the cost to replace a house is $200,000 and the site value is $12,000. What is his opinion of value?

Answer Options: A. $168,000 B. $192,000 C. $208,000 D. $232,000

Answer: B. $192,000

Question: How can a real estate licensee BEST maintain separation between brokerage and appraisal services?

Answer Options: A. Charging fees based on final value opinions B. Providing value opinions without documentation C. Using appraisal terminology in reports D. Using appropriate broker-specific terminology

Answer: D. Using appropriate broker-specific terminology

Question: Which statement is MOST accurate regarding the properties considered in a CMA?

Answer Options: A. Only properties sold in last 30 days B. Withdrawn listings provide no useful information C. Properties currently for sale are most important D. A comprehensive CMA should include active, pending, sold, expired, and withdrawn listings

Answer: D. A comprehensive CMA should include active, pending, sold, expired, and withdrawn listings

Question: During reconciliation, the value indication produced by the sales comparison approach for a residential property:

Answer Options: A. cannot be the only appraisal approach used B. is never used as the final opinion of value C. may be given the most weight if data is reliable D. must be used in every assignment

Answer: C. may be given the most weight if data is reliable

Question: A comparable property sold for $300,000 and has a finished basement while the subject does not. What is the adjusted sales price?

Answer Options: A. $290,000 B. $300,000 C. $310,000 D. The price is never adjusted

Answer: A. $290,000

Question: If a developer purchased a lot measuring 480′ × 726′ at $5,000 per acre, how much did the developer pay?

Answer Options: A. $37,000 B. $38,500 C. $39,000 D. $40,000

Answer: D. $40,000

Question: When preparing a CMA, which properties should be considered?

Answer Options: A. Only sold properties B. Only active listings C. Only expired listings D. All comparable properties exposed to the market

Answer: D. All comparable properties exposed to the market

Question: Fiona is appraising a historic home built in 1875. Which cost estimate would she MOST likely need?

Answer Options: A. Depreciated cost B. Obsolescence cost C. Replacement cost D. Reproduction cost

Answer: D. Reproduction cost

Question: A comparable property has five bedrooms and the subject has four. What adjustment is made?

Answer Options: A. add $7,500 to the subject property B. add $7,500 to the comparable property C. subtract $7,500 from the subject property D. subtract $7,500 from the comparable property

Answer: D. subtract $7,500 from the comparable property

Question: Which calculation is used for the cost approach method?

Answer Options: A. Building Cost – Depreciation + Land Value B. Building Cost – Depreciation – Land Value C. Building Cost + Depreciation – Land Value D. Building Cost + Depreciation + Land Value

Answer: A. Building Cost – Depreciation + Land Value

Question: Once analysis is complete, the appraiser considers the three appraisal approaches and ________ the estimates.

Answer Options: A. averages B. finds the mean C. finds the median D. reconciles

Answer: D. reconciles

Question: What are the four tests that define the highest and best use of a property?

Answer Options: A. Legally permitted, physically possible, financially feasible, and most profitable B. Legally permitted, physically possible, environmentally sustainable, and most profitable C. Legally permitted, financially feasible, socially acceptable, and most profitable D. Legally permitted, environmentally sustainable, socially acceptable, and most profitable

Answer: A. Legally permitted, physically possible, financially feasible, and most profitable