Question: Which method of site valuation is MOST appropriate for appraising raw land if the land is intended to be used for a residential development and sales information for finished lots is available?

Answer Options: A. Subdivision analysis method B. Ground rent capitalization method C. Land residual method D. Allocation method

Answer: A. Subdivision analysis method

Question: Which type of legal description identifies property using directions and distances from a point of beginning?

Answer Options: A. Government survey system B. Plat map system C. Lot and block system D. Metes and bounds system

Answer: D. Metes and bounds system

Question: Which method of site valuation involves collecting data on sales of properties that are similar to the subject property and then making adjustments for differences such as location or physical characteristics of the lot?

Answer Options: A. Allocation method B. Land residual method C. Sales comparison method D. Subdivision analysis method

Answer: C. Sales comparison method

Question: What are the primary reference points used in the government survey system to divide large tracts of land?

Answer Options: A. Principal meridians and baselines B. Directions and distances C. Lots and blocks D. Monuments and landmarks

Answer: A. Principal meridians and baselines

Question: In the allocation method, what does the appraiser establish to estimate land value?

Answer Options: A. The ratio of net income to land value B. The ratio of gross rent to land value C. The ratio of building cost to land cost D. The ratio of land value to total property value

Answer: D. The ratio of land value to total property value

Question: The ground rent capitalization method would be MOST appropriate for valuing:

Answer Options: A. land subject to a ground lease B. raw land for development C. recently subdivided lots D. vacant residential lots

Answer: A. land subject to a ground lease

Question: What type of legal description is specifically used for platted (subdivided) property?

Answer Options: A. Metes and bounds B. Rectangular survey C. Lot and block D. Government survey

Answer: C. Lot and block

Question: Which of these is one of the methods of site valuation?

Answer Options: A. Cost approach method B. Depreciation method C. Income approach method D. Subdivision analysis method

Answer: D. Subdivision analysis method

Question: What is the primary purpose of the lot and block description in real estate?

Answer Options: A. To identify the subject property’s zoning classification B. To describe the boundaries of a property in terms of compass directions and distances C. To estimate the land value of platted property D. To provide a legal description for platted property

Answer: D. To provide a legal description for platted property

Question: Which legal description system uses principal meridians and baselines?

Answer Options: A. Government survey system B. Plat map system C. Lot and block system D. Metes and bounds system

Answer: A. Government survey system

Question: What is the primary reason for making adjustments in a specific sequence during the sales comparison approach?

Answer Options: A. To simplify the appraisal process B. Because adjustments must be made in order of monetary value C. Because physical characteristics must be adjusted before market conditions D. Because some adjustments are based on a percentage of the sales price of the comparables

Answer: D. Because some adjustments are based on a percentage of the sales price of the comparables

Question: A comparable property lacks a garage while the subject property has one. If a garage adds $10,000 in value, what adjustment should be made?

Answer Options: A. Add $10,000 to the comparable property B. Subtract $10,000 from the comparable property C. Add $10,000 to the subject property D. Subtract $10,000 from the subject property

Answer: A. Add $10,000 to the comparable property

Question: Who typically performs a competitive market analysis (CMA)?

Answer Options: A. A licensed or certified appraiser B. A real estate licensee C. A property inspector D. A lender

Answer: B. A real estate licensee