Question: An appraiser is evaluating a small retail store. What is the appraiser’s estimate of value?

Answer Options: A. $53,333 B. $60,377 C. $67,500 D. $76,830

Answer: A. $53,333

Question: What principle states that the value of the best home in a neighborhood will be lowered by the presence of inferior homes?

Answer Options: A. Anticipation B. Contribution C. Progression D. Regression

Answer: D. Regression

Question: Which is an example of functional obsolescence?

Answer Options: A. Boards on a deck that need to be replaced B. Houses that are downwind from a paper mill C. A bathroom that is only accessible through a bedroom D. Hallway carpet that is worn out

Answer: C. A bathroom that is only accessible through a bedroom

Question: What are the four broad forces remembered by the acronym P-E-G-S?

Answer Options: A. Price, equity, growth, and supply B. Population, employment, geography, and stability C. Physical, economic, governmental, and social D. Property, environment, geography, and society

Answer: C. Physical, economic, governmental, and social

Question: For which of these properties might an appraiser weigh the cost approach more heavily?

Answer Options: A. Homes in a subdivision with high turnover B. Properties that are newly built with no comparable sales C. Properties that produce income D. Vacant land

Answer: B. Properties that are newly built with no comparable sales

Question: In what order would an appraiser perform the income approach to value when using the capitalization method?

Answer Options: A. Determine NOI, apply cap rate, calculate EGI, estimate PGI B. Apply cap rate, determine NOI, estimate PGI, calculate EGI C. Estimate PGI, calculate EGI, determine NOI, apply cap rate D. Calculate EGI, determine NOI, apply cap rate, estimate PGI

Answer: C. Estimate PGI, calculate EGI, determine NOI, apply cap rate

Question: The four tests of highest and best use are legally permitted, financially feasible, physically possible, and:

Answer Options: A. most profitable B. environmentally sustainable C. socially acceptable D. community compatible

Answer: A. most profitable

Question: The three physical characteristics of land are:

Answer Options: A. scarcity, utility, and transferability B. uniqueness, immobility, and indestructibility C. location, size, and topography D. value, price, and cost

Answer: B. uniqueness, immobility, and indestructibility

Question: A comparable property has a basement, and the subject property has only a crawl space. What adjustment is made?

Answer Options: A. add $18,000 to the sales price of the comparable property B. add $18,000 to the sales price of the subject property C. subtract $18,000 from the sales price of the comparable property D. subtract $18,000 from the sales price of the subject property

Answer: C. subtract $18,000 from the sales price of the comparable property

Question: Which statement best describes what an appraisal represents?

Answer Options: A. A guarantee of minimum property value B. A supportable opinion based on facts and evidence C. A prediction of future property worth D. A determination of what buyers will pay

Answer: B. A supportable opinion based on facts and evidence

Question: An appraiser finds a comparable duplex that sold for $369,600. What would be the appraiser’s opinion of value?

Answer Options: A. $184,800 B. $190,400 C. $358,729 D. $380,800

Answer: D. $380,800

Question: A comparable property sold for $369,500. What is the adjusted sales price?

Answer Options: A. $366,500 B. $368,500 C. $370,500 D. $372,500

Answer: C. $370,500

Question: An appraiser notices several problems that need to be fixed. These issues are examples of:

Answer Options: A. curable depreciation B. economic obsolescence C. external obsolescence D. functional obsolescence

Answer: A. curable depreciation