Appraisals

Question 1

A professionally derived estimate or opinion of the value of real estate is called ____.

Answer 1

An appraisal

Question 2

What can a certified residential appraiser appraise?

Answer 2

A residence having 1 to 4 units of any value.

Question 3

What can a certified general appraiser appraise?

Answer 3

Any real property of any value.

Question 4

What can a licensed appraiser appraise?

Answer 4

Noncomplex residence having 1 to 4 units of up to $1 million of value OR a complex residential unit up to $250,000 in value.

Question 5

What can a registered trainee appraiser appraise?

Answer 5

Must work under another’s supervision.

Question 6

To be certified or licensed as an appraiser requires education and experience established for all states by the _____.

Answer 6

Appraisal Foundation

Question 7

True or False: Certified appraisal requirement include a two-year college degree

Answer 7

False. 4 year degree

Question 8

Licensed or certified appraisers must conform to the requirements of the ____, which is published by the Appraisal Foundation.

Answer 8

Uniform Standards of Professional Appraisal Practice (USPAP)

Question 9

What is the objective of most appraisals? What could be other objectives?

Answer 9

Market value. Others: insurance value, investment value, value in use, loan value, book value

Question 10

True or False: A real estate broker or salesperson is not a qualified appraiser and cannot perform an appraisal

Answer 10

True

Question 11

What may a real estate broker/salesperson prepare instead of an appraisal?

Answer 11

Comparative Market Analysis (CMA) or a Broker’s Opinion of Value (BOV)

Question 12

Two of the economic principles that underlie appraisal are:

Answer 12

Substitution & Anticipation

Question 13

The question “What does it cost the acquire a substitute property with he same salient characteristics” is what principle of appraisal?

Answer 13

Substitution

Question 14

The question “What are the anticipated future benefits from the subject property and how much are they worth?” is what principle of appraisal?

Answer 14

Anticipation

Question 15

Highest and best use of a property is the use that will provide the highest ____.

Answer 15

Return

Question 16

Cost is how much it would cost to reproduce an exact replica of the subject, less _____.

Answer 16

Depreciation

Question 17

Depreciation is what? What are the 3 types?

Answer 17

A loss in value. Physical deterioration (wear/tear), Functional obsolescence (function out of style), economic or external obsolescence (loss in value caused by sources outside the property)

Question 18

True or False: The market value of land is added to the cost in an appraisal.

Answer 18

True

Question 19

Adjusting the actual price paid for a comparable sale to the subject for differences is what appraisal approach?

Answer 19

Sales Comparison

Question 20

Using a property’s net operating income during appraisal is what approach?

Answer 20

Income or capitalization

Question 21

How do you calculate the net operating income?

Answer 21

Gross income minus operating expenses

Question 22

What is the difference between an appraisal report and a restricted appraisal report?

Answer 22

A restricted report can be abbreviated when the client is the only user and is knowledgeable about the property. Both require certain elements, stated in USPAP, so that the reader can understand the data the appraiser used.

Question 23

A certified residential appraiser requires ___ classroom hours of precertification education, and a ____ degree or equivalent. How many total hours of experience are required?

Answer 23

200; Bachelor’s; 1500 hours in no less than 12 months.

Question 24

A certified general appraiser requires ____ classroom hours of precertification education, and a ___ degree or equivalent. How many total hours of experience are required?

Answer 24

300; Bachelor’s; 3000 hours in no less than 18 months. A minimum of 1500 hours is obtained in nonresidential work.

Question 25

A licenses residential appraiser requires ____ classroom hours of precertification education, and what degree? How many total hours of experience are required?

Answer 25

150; no degree required; 1000 hours in no less than 6 months.

Question 26

True or False: Registered Trainee Appraisers must pass an examination

Answer 26

False

Question 27

Registered Trainee Appraisers must have ____ classroom hours of precertification education, and what degree? How many total hours of experience are required?

Answer 27

75; no degree; no experience requirement