Property Value and Appraisal Exam

Question 1

First principle of appraising real property

Answer 1

Highest and best use

Question 2

Sales comparison approach is based on which two value principles?

Answer 2

Substitution and Contribution

Question 3

Comparables selected that have been sold within

Answer 3

6 months

Question 4

In using comparables, do you adjust the subject or the comparables

Answer 4

The comparables adjust

Question 5

Cost approach to value estimates depreciation based on land, improvements, or both

Answer 5

Improvements

Question 6

Formula for cost approach method

Answer 6

Improvements - depreciation + land = cost

Question 7

Cost estimating: using square foot or cubic foot multipliers

Answer 7

Unit comparison

Question 8

Cost estimating: Using a manual of costs

Answer 8

Unit-in-place

Question 9

Cost estimating: like a builder computes a bid

Answer 9

Quantity survey

Question 10

Cost estimating: Applying a percentage multiplier to the original cost

Answer 10

Cost index

Question 11

Most common method of depreciation is

Answer 11

Straight line method

Question 12

Best value method for a vacant parcel of land

Answer 12

Market data approach

Question 13

Most difficult step in using income capitalization method

Answer 13

Determining the risk factor

Question 14

In 1031 exchange, how many days after closing does one have to find new property

Answer 14

45 days