Property Valuation and Appraisal

Question 1

When a landlord will not maintain property and the tenant moves out, this is called:

A: Actual eviction
B: Constructive Eviction
C: Failure to comply
D: Seizen

Answer 1

constructive eviction

Question 2

You build a $200,000 house in a $100,000 neighborhood. This would be:

A: Economic Life
B: Regression
C: Substitution
D: Progression

Answer 2

regression

Question 3

What would be least important when appraising property?

A: Land
B: Original Cost
C: House
D: Real Property

Answer 3

original cost

Question 4

When appraising a commercial rental office, what approach would be used?

A: Income
B: Cost
C: Highest and best use
D: Market

Answer 4

income

Question 5

When appraising land, the best approach would be:

A: cost
B: income
C: highest and best use
D: market

Answer 5

market

Question 6

Appraisal licensing is required by:

A: HUD
B: Sherman anti trust act
C: Federal Reserve
D: FIRREA

Answer 6

FIRREA

Question 7

Direct sales comparison method of appraisal is based on:

A: Substitution
B: Highest and best use
C: Replacement
D: Income

Answer 7

substitution

Question 8

What would not apply to the cost approach of appraising?

A: Substitution
B: Net income
C: Title Insurance
D: Poor Floor Plan

Answer 8

net income

Question 9

When the appraiser needs to calculate a separate value for the land, he is using the:

A: cost approach
B: income approach
C: salvage of the land approach
D: market approach

Answer 9

cost approach

Question 10

What would not impact property value?

A: Economic Obsolescence
B: Title Insurance Policy
C: Cloud on Title
D: Functional Obsolescence

Answer 10

title insurance policy

Question 11

Due to changes in modern design, your property is no longer desirable. This is referred to as:

A: functional obsolescence
B: economic obsolescence
C: social obsolescence
D: physical obsolesence

Answer 11

functional obsolescence

Question 12

All of the following would be examples of physical depreciation in the cost approach of appraising except:

A: poor floor plan
B: worn out carpet
C: bathroom fixtures not working
D: house in need of painting

Answer 12

poor floor plan

Question 13

When the appraiser is using the replacement cost less depreciation plus the value of the land, this type of approach is:

A: Market
B: Income
C: Cost
D: Highest and best use

Answer 13

cost

Question 14

When appraising a church, the appraiser would use what approach?

A: cost
B: income
C: market
D: average of income cost and market

Answer 14

cost

Question 15

What is taken into consideration when calculating the effective gross income?

A: vacancy and loss of credit
B: depreciation and operating expenses
C: depreciation
D: vacancy and debt service

Answer 15

A: vacancy and loss of credit

Question 16

All of the following would affect the basis of property EXCEPT:

A: Interest paid on the loan
B: Closing cost
C: Purchase price
D: Depreciation

Answer 16

A: Interest paid on the loan

Question 17

A CAP rate is based on what type of income?

A: net
B: scheduled
C: Gross
D: Effective

Answer 17

A: Net