Chapter 16 - Quiz

Question 1

What does peeling paint indicate?

Physical deterioration
Economic Obsolescence
Plottage
Functional obsolescence

Answer 1

Physical deterioration

Question 2

What type of valuation is most often provided to lenders for distressed properties?

Short Sale Opinion
Real Estate Appraisal
Broker’s Price Opinion
CMA

Answer 2

Broker’s Price Opinion

Question 3

Which are the Three Distinct Boards of TAF?

There is only one: The Appraisal Standards Board
Appraisal Brokers, Appraisal Oversight, and Appraisal Training.
Appraiser, Appraiser Qualifier, Appraisal Law.
Appraisal Qualification Board, Appraisal Standards Board, Appraisal Practices Board.

Answer 3

Appraisal Qualification Board, Appraisal Standards Board, Appraisal Practices Board

Question 4

Which principle does the market data approach use?

Conformity
Reproduction
Substitution
Replication

Answer 4

Substitution

Question 5

Which of the following best describes the principle that a home maintains its highest value when surrounded by similar types of homes?

Consistency
Conformity
Highest and Best Use
Best Market Value

Answer 5

Conformity

Conformity best describes the principle that a home maintains its highest value when surrounded by similar types of homes.

Question 6

Which of the following is NOT part of Market Value?

The price for which the property last sold
Relation to the price at which the property should sell in the open market
Assuming buyer and seller are sufficiently well informed
Allowance of time for reasonable exposure on the market

Answer 6

The price for which the property last sold

The price for which the property last sold is NOT part of Market Value.

Question 7

What is an AVM?

Appraisal Value Method
Automated Valuation Model
After Valuation Mediation
Appraiser Vehicle Model

Answer 7

Automated Valuation Model

Question 8

What is used in the Gross Rent Multiplier?

Sale Price and Fixed Costs
Sale Price and Depreciation
Sale Price and Monthly Rental Rates
Sale Price and Property Tax

Answer 8

Sale Price and Monthly Rental Rates

Question 9

What is the first step in an appraisal?

Drive around the neighborhood
Gather Data
Compare similar sold properties
Define the problem

Answer 9

Define the problem

The first step in any appraisal is to define the problem.