Fundamental of Real Property Appraisal - Quiz #1

Question 1

The basic responsibility of the assessor are to _______all taxable property.

Answer 1

list, value, discover

Question 2

One of the steps an assessor must take in the discovery of property is to

Answer 2

conduct periodic on-site inspections of properties

Question 3

The property tax is a/an _______tax, meaning it is based on value.

Answer 3

ad valorem

Question 4

Assume the following characteristics for a single-family residence:

Actual value = $175,000; assessment level = 20 percent; tax rate = 92.8 mills.
Calculate the property tax for the residence.

Answer 4

Actual value             $175,000
Assessment level               .20
Assessed value          $35,000
Tax Rate                          .0928
Taxes                               $3,248

Question 5

If a tax rate is $13.30 per $100, the decimal equivalent would be

Answer 5

0.1330

Question 6

_____________ divided by the assessed value equals the tax rate.

Answer 6

budget

Question 7

Assessment level times the tax rate equals the

Answer 7

effective tax rate

Question 8

Given the following, compute a tax rate using dollars per hundred:

Budget $6,000,000
Market Value $800,000,000
Assessment Level 50%
Non-property tax revenue $1,000,000

Answer 8

Market Value $800,000,000
Assessment Level .50
Assessed value $400,000,000
Budget $6,000,000
Non-property tax revenue $1,000,000
Budget to be paid by property taxes $5,000,000
Tax rate: 5,000,000/400,000,000 0.0125
ANSWER = $1.25

Question 9

______________ is the physical land and everything permanently attached to it.

Answer 9

Real estate

Question 10

Which of the following is a governmental restriction to the “bundle of rights”?

Answer 10

eminent domain

Question 11

Which of the following is a basic right associated with the ownership of property?

Answer 11

to use, to lease or rent , to enter or leave

Question 12

In order for a property to have value, it must have utility, scarcity, desirability and effective purchasing power. The economic forces that determine scarcity are

Answer 12

supply and demand

Question 13

_____________ is the point at which the forces of supply and demand meet - the point of balance

Answer 13

Equilibrium

Question 14

A/an ___________ interest is ownership of all the rights in a property, except those reserved by the government, and with no private encumbrances.

Answer 14

fee simple

Question 15

In the appraisal process, data collection requires the assessor to collect

Answer 15

general data, specific data, comparative data

Question 16

Which of the following is not one of the four great forces by which value is created, maintained, modified, or destroyed?

Answer 16

conceptual

Question 17

A _____________ may be defined as an area of complementary land uses in which all properties are similarly influenced b the four forces affecting value.

Answer 17

neighborhood

Question 18

What element of the marketplace is likely to contribute to a change in demand?

Answer 18

consumer expectations

Question 19

what element of the marketplace is likely to contribute to a change in supply?

Answer 19

entrepreneur expectation

Question 20

What elements of the marketplace is likely to contribute to a change in supply?

Answer 20

entrepreneur expectation

Question 21

A township in the Public Land Survey contains ______sections, with each section containing _______acres.

Answer 21

36-640

Question 22

The NE1/4NW1/4SE1/4SW1/4 contains _________acres

Answer 22

2.5

Question 23

A land description system in which boundaries are described as distances between two semi permanent points or as lines following compass bearing is known as

Answer 23

metes and bounds description

Question 24

The principle that states that market value of a property tends to be set by the cost of acquiring an equally desirable and valuable substitute property is

Answer 24

substitution

Question 25

Given the following:

Sale price $220,000
Cost new of improvement $260,000
Depreciation $90,000

The indicated land value would be:

Answer 25

Sale price $220,000
Cost new of improvements 260,000
Depreciation 90,000
Depreciated value of improvements -170,000
Indicated land value $50,000
Answer = $50,000

Question 26

The principle illustrating that market value is determined by such factors as zoning, rent controls, interest rates, and so on is

Answer 26

change

Question 27

The appropriate map scale for urban areas is

Answer 27

1” = 100’

Question 28

A lot measures 242’ x 1800’. What is the value of the lot if the land is worth $60,000 per acre?

Answer 28

242 x 1800= 43,560/10 x$60,000 = $600,000

Question 29

The ____________ unit would be the appropriate unit when pedestrian is an important consideration.

Answer 29

front foot