Practice Test 7 - Mod 19-21

Question 1

A group of complementary land uses defines a

A. community.
B. district.
C. market area.
D. neighborhood.

Answer 1

D. neighborhood.

Question 2

A fully developed neighborhood continues to experience good demand and a modest rise in property values. How would you classify the life cycle period of this area?

A. decline
B. growth
C. revitalization
D. stability

Answer 2

D. stability

Question 3

Appraiser Mills described the market area as a blue-collar area with good pride of ownership in the area residences. This is an example of

A. conformity.
B. homogeneity.
C. lessor interest.
D. stereotyping.

Answer 3

D. stereotyping.

Question 4

A district has a research center, high-tech companies, and a university. This describes what kind of district?

A. commercial
B. industrial
C. office
D. specialty

Answer 4

D. specialty

Question 5

In a scope of work decision, an opinion of market value and its definition are the elements that are also known as

A. intended use.
B. objective.
C. opinion type.
D. purpose.

Answer 5

D. purpose.

Question 6

Partners Bank had questions about an appraisal, so it decided to get a second opinion from another independent appraiser. What is this second assignment called?

A. appraisal
B. appraisal review
C. broker’s price opinion
D. real property consulting

Answer 6

A. appraisal

Question 7

Rivers, forested areas, and marshlands are examples of natural features that define what type of boundaries within a market area?

A. economic
B. geographic
C. legal
D. social

Answer 7

B. geographic

Question 8

The area surrounding Independence Hall in Philadelphia, where the Constitution of the United States was signed, is an example of this kind of district.

A. educational
B. historic
C. single-family
D. specialty

Answer 8

B. historic

Question 9

What is the process called when a market area goes from agricultural to residential?

A. change
B. conversion
C. transformation
D. transition

Answer 9

D. transition

Question 10

An appraiser provided advice on various commercial building sites to a client, including a value opinion on the optimum recommended site. What type of appraisal practice did the appraiser perform?

A. appraisal
B. appraisal review
C. property management
D. real property consulting

Answer 10

A. appraisal

Question 11

Trotter performed an appraisal with an “exterior-only” inspection. The degree to which a property is inspected is which part of the appraisal development process?

A. appraiser’s certification
B. appraiser’s statement of disclosure
C. limiting conditions statement
D. scope of work

Answer 11

D. scope of work

Question 12

Moyer completed an appraisal for a bank on a property that was being refinanced. The owners of the property paid for the appraisal when they completed the
application at the bank and were promised a copy of the appraisal report. In this case, what is the property owner?

A. an intended user only
B. a party who is neither the client nor an intended user
C. both the client and an intended user
D. the client only

Answer 12

B. a party who is neither the client nor an intended user

Question 13

A real estate agent who is not an appraiser provides a client with an asking price that will be used to list a property on the market. The agent

A. cannot provide this service.
B. has performed appraisal practice.
C. has performed a valuation service.
D. is practicing appraisal without a license.

Answer 13

C. has performed a valuation service.