| A | B |
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| 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| Functional obsolescence consists of: | loss of value due to defective or outdated building design |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 |
