Chapter 1 - The Appraisal Profession

Question 1

List at LEAST five general course areas that would benefit a real estate appraiser, in addition to real estate courses

Answer 1

Numerous courses, such as economics, geography, city planning, accounting, and statistics.

Question 2

The federal agency that now insures deposits in financial institutions is

a. FDIC.
b. FSLIC.
c. RTC.
d. FIRREA.

Answer 2

a. FDIC.

Question 3

All the following areas of federal regulation affect appraisers EXCEPT

a. appraiser licensing.
b. fair housing.
c. Congressional Budget Office (CBO).
d. lead-based paint.

Answer 3

c. Congressional Budget Office (CBO).

Question 4

Appraiser qualifications that meet federal guidelines come from

a. the Appraiser Qualifications Board.
b. the Appraisal Standards Board.
c. the Resolution Trust Corporation.
d. the Appraisal Institute.

Answer 4

a. the Appraiser

Question 5

Every state must enact legislation to provide for appraiser licensing and certification that is consistent with criteria established by

a. the Federal National Mortgage Association.
b. the Appraiser Qualifications Board of the Appraisal Foundation.
c. the Resolution Trust Corporation.
d. the Appraisal Institute.

Answer 5

b. the Appraiser Qualifications Board of the Appraisal Foundation.

Question 6

The purpose of USPAP is to

a. delay government regulation.
b. present information that will be meaningful to the client and will not be misleading in the marketplace.
c. guarantee professionalism in appraisers.
d. present information that will be useful to appraisers.

Answer 6

b. present information that will be meaningful to the client and will not be misleading in the marketplace.

Question 7

A certified appraiser is required for federally related transactions involving property valued at more than

a. $250,000.
b. $500,000.
c. $750,000.
d. $1,000,000

Answer 7

d. $1,000,000

Question 8

The Federal Housing Finance Agency was created by

a. the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
b. the Housing and Economic Recovery Act of 2008.
c. the Tax Reform Act of 1986.
d. the Fair Housing Amendments Act of 1988.

Answer 8

b. the Housing and Economic Recovery Act of 2008.

Question 9

The appraisal coursework required by the AQB for a certified general real estate appraiser totals

a. 75 hours.
b. 150 hours.
c. 300 hours.
d. 500 hours.

Answer 9

c. 300 hours.

Question 10

An appraisal is

a. an opinion of value.
b. an estimate of value.
c. the highest price.
d. whatever the buyer and seller agree on.

Answer 10

a. an opinion of value.

Question 11

An appraiser

a. estimates price.
b. estimates value.
c. renders an opinion of value.
d. renders an opinion of cost.

Answer 11

c. renders an opinion of value.

Question 12

The scope of work

a. protects the public.
b. establishes what the appraiser should do in the assignment.
c. is an optional component of the appraisal assignment.
d. is established by the client

Answer 12

b. establishes what the appraiser should do in the assignment.

Question 13

To ensure the credibility of the appraisal, the appraiser must be

a. objective.
b. a novice.
c. under the supervision of another appraiser.
d. working in a team of appraisers.

Answer 13

a. objective.

Question 14

All of the following are valid methods to keep up with changes in technology EXCEPT

a. taking college courses.
b. taking appraisal courses.
c. word of mouth from friends.
d. watching internet videos about technology

Answer 14

c. word of mouth from friends.

Question 15

The purpose of the Uniform Standards of Professional Appraisal Practice (USPAP) is to

a. increase appraisal fees.
b. enhance public trust in appraisal.
c. increase the appraiser’s business.
d. make appraiser licensing national.

Answer 15

b. enhance public trust in appraisal.

Question 16

The appraisal coursework required for a certified residential appraiser is

a. 75 hours.
b. 150 hours.
c. 200 hours.
d. 300 hours.

Answer 16

c. 200 hours.

Question 17

Appraisers are licensed by

a. the federal government.
b. the government of the state in which the appraiser resides.
c. the government of the state in which the subject property is located
d. the National Association of REALTORS.

Answer 17

c. the government of the state in which the subject property is located

Question 18

Licensing of appraisers protects

a. the public.
b. the appraiser.
c. the Appraisal Foundation.
d. the state.

Answer 18

a. the public.

Question 19

The appraiser can accurately locate the property being appraised using

a. a compass.
b. a digital camera.
c. a backup system.
d. a geographic information system (GIS).

Answer 19

d. a geographic information system (GIS).

Question 20

Joining a professional trade association

a. can help an appraiser keep up to date with the appraisal field.
b. is required by federal law.
c. is required by the law of the state in which the appraiser is
d. guarantees the appraiser will find work.

Answer 20

a. can help an appraiser keep up to date with the appraisal field.