Question: The subject property rents for $625 per month and GRM is 183.75. What is the indicated value?

Answer Options: A. $114,844 B. $134,013 C. $137,812 D. $140,983

Answer: A. $114,844

Question: To find the effective gross income, what does Roberta need to consider?

Answer Options: A. Debt service on the mortgage B. Operating expenses C. Property taxes D. Vacancy losses

Answer: D. Vacancy losses

Question: In the land residual method, what is used to calculate the value of the land?

Answer Options: A. Cost of construction B. Income attributed to the land C. Historical sales data D. Ground rent

Answer: B. Income attributed to the land

Question: The four tests of highest and best use are legally permitted, ________, financially feasible, and most profitable.

Answer Options: A. environmentally sound B. market compatible C. physically possible D. socially acceptable

Answer: C. physically possible

Question: Which site valuation method involves finding a typical ratio of site value to total property value?

Answer Options: A. Sales comparison method B. Allocation method C. Ground rent capitalization method D. Subdivision analysis method

Answer: B. Allocation method

Question: Which home suffers from external obsolescence?

Answer Options: A. Basement only accessible from outside B. Detached one-car garage C. Crumbling foundation D. Less than 500 yards from county dump

Answer: D. Less than 500 yards from county dump

Question: Jackson purchased a 120′ × 140′ lot at $30,000 per acre. How much did he pay?

Answer Options: A. $5,040 B. $5,518 C. $11,400 D. $21,900

Answer: C. $11,400

Question: The cost approach would NOT likely be used to:

Answer Options: A. determine the value of a special-purpose property B. estimate insurance value C. estimate value based on income D. support findings of other appraisal approaches

Answer: C. estimate value based on income

Question: Which is an example of functional obsolescence?

Answer Options: A. Home facing busy highway B. Bathroom accessible only through bedroom C. Broken furnace D. Severe structural foundation damage

Answer: B. Bathroom accessible only through bedroom

Question: A commercial property sells for $319,200 with EGI of $70,000 and operating expenses of $32,000. What is the cap rate?

Answer Options: A. 2.20% B. 4.50% C. 8.40% D. 11.90%

Answer: D. 11.90%

Question: Which activity would constitute unauthorized appraisal practice by a real estate licensee?

Answer Options: A. Advising clients on market conditions B. Charging a separate fee for providing an opinion of value C. Providing a CMA to a client D. Using broker-specific forms

Answer: B. Charging a separate fee for providing an opinion of value

Question: An appraiser is likely to use the GRM method for which property?

Answer Options: A. Apartment building with five or more units B. Industrial complex with 10 warehouses C. A single-family home intended to be leased D. A vacant lot

Answer: C. A single-family home intended to be leased