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Appraiser Trainee Exam > Questions (not multiple choice) > Flashcards

Questions (not multiple choice) Flashcards

1
Q

The ability of a product to satisfy a human want, need or desire.

A

Utility

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2
Q

The price a willing buyer will pay and a willing seller will sell for, if neither is under undue pressure

A

Market Value

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3
Q

What are the four characteristics of value?

A

Demand, utility, scarcity, transferability

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4
Q

The purpose of USPAP

A

To promote and maintain a high level of public trust in appraisal practice.

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5
Q

Depreciation caused by a loss of utility is

A

Functional Obsolescence

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6
Q

What is a property’s highest and best use?

A

The use of the property that provides the greatest financial return

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7
Q

The three approaches to value

A
  1. Sales Comparison Approach
  2. Cost Approach
  3. Income Approach
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8
Q

The presence of lower priced properties in an area will cause a decline in the value of the subject property is called _______

A

Regression

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9
Q

The process of combining several parcels of land into one larger tract

A

Assemblage

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10
Q

What is postponed maintenance on property that results in increased physical depreciation (wear and tear)

A

Deferred Maintenance

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11
Q

The final step in the appraisal process using weighted averages to determine an estimate of value

A

Reconcilation

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12
Q

What are the 5 attributes of land?

A
  1. Immobile
  2. Durability
  3. Uniqueness
  4. Finite
  5. Useful
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13
Q

The difference between real estate and real property?

A

Real Estate: A parcel of land and its improvements

Real Property: Ownership, rights, benefits

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14
Q

What does USPAP stand for?

A

Uniform Standards of Professional Appraisal Practice

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15
Q

What is the important consideration regarding special use properties?

A

Their value may be affected to their limited purpose use

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16
Q

What are the 4 agents of production?

A
  1. Land 2. Labor 3. Capital 4. Entrepreneurial Benefit
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17
Q

The condition of a property measured in years, also know as______

A

Effective Age

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18
Q

What are the 4 phases that a neighborhood goes through?

A
  1. Growth 2. Stability 3. Decline 4. Revitalization
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19
Q

What is the most complete form of ownership of a property?

A

Fee Simple

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20
Q

What are the 4 government powers that can be imposed on a property?

A
  1. Police power 2. Eminent Domain 3. Escheat 4. Taxation
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21
Q

What are the (5) rights in property, or “sticks” in the bundle?

A
  1. Right to sell
  2. Right to lease
  3. Right to occupy
  4. Right to mortgage
  5. Right to give away
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22
Q

The absolute rights to a property limited to the lifetime of the designated party, also known as _____

A

Life Estate

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23
Q

Are the user and payer of the appraisal report always the client?

A

NO!

The client could be an agent. The client is the person who is engaging with the appraiser.

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24
Q

The right to use another’s real property for a particular use is a(n)_______

A

easement

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25
Q

Property sold in a less than typical marketing period and exposure is what type of value?

A

Liquidation value

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26
Q

What are the 4 tests of highest and best use?

A
  1. Physically possible
  2. Legally possible
  3. Economically Feasible
  4. Maximally Productive
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27
Q

______ Land is the portion over and above what is needed for the highest and best use, and does not have a stand alone value

A

Surplus Land

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28
Q

____ Land is land that is not necessary to support improvements. It has its own value.

A

Excess Land

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29
Q

The conversion of income value is called?

A

Capitalization

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30
Q

A fee appraiser seeks to get on the approved list for a local mortgage company. In order to be considered for approval, the lender requires appraisers to provide sample appraisal reports performed within the past year. Can the appraiser provide the reports without violating USPAP?

A

Yes, if all the essential elements of confidential information are removed through redaction of the process of aggregation

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31
Q

Who has oversight authority over state appraisal boards?

A

ASC

Appraisal Subcommittee

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32
Q

The concept that a higher priced property will be worth less in a lower-prices neighborhood than it would in a neighborhood of comparable properties is the definition of the principle of

A

regression

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33
Q

Trespassing on the domain of another is the definition of

A

encroachment

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34
Q

A firm agreement to preform an act, refrain from acting of make a payment or delivery is the definition of

A

Promise

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35
Q

The right to construct and maintain tunnels, subways, subcellars, pipelines, sewers, etc. is the definition of what kind of rights

A

Subsurface

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36
Q

A facade easement is what type of easement?

A

Historic Preservation

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37
Q

USPAP includes performance standards for the appraisal of

A

real property, personal property, and business/intangible property

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38
Q

A right or interest in a property is a(n)

A

Estate

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39
Q

Which type of investment has historically generated the highest return on investment?

A

Real Estate

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40
Q

what kind of contract is one that has not been fully performed or completed?

A

Executory

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41
Q

Mary Jones has a property with no road frontage. She has an access right of way across the property of her neighbor Bob Smith for ingress, egress, and regress. Who has the dominant tenement in this situation?

A

Mary Jones

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42
Q

The Federal Reserve can influence the level of economic activity by

A

Regulating the availability of money and the rate of interest

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43
Q

The appraisal standards and qualification criteria promulgated by the boards of The Appraisal Foundation achieves legal authority by adoption, citation or implementation by

A

Government Agencies

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44
Q

The price expected for a whole property, e.g., a house, or a part of a property, e.g., a plumbing fixture, that is removed from the premises usually for use elsewhere” is the definition of ____________ value.

A

Salvage

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45
Q

Property Owner A has the right to develop his property into 10 lots. He sells this right to nearby Property Owner B who wishes to develop his property into additional lots. This is an example of

A

Transferable Development Rights

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46
Q

In the 1970s, who developed uniform rules for mortgage underwriting?

A

Fannie Mae and Freddie Mac

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47
Q

Definition of appraisal:

A

An opinion of value

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48
Q

The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified by the lease

A

Leasehold Estate

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49
Q

Who are the main lenders (3) on the secondary mortgage market?

A

Fannie Mae, Freddie Mac, Ginnie Mae

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50
Q

In a trust deed, the title to a property is vested in WHO until the mortgage lien is satisfied?

A

Trustee

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51
Q

There are stipulations that make a deed valid. What does NOT have to happen to make a deed valid?

A

Having the deed recorded

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52
Q

Cost approach formula

A

Property value = Land value + (cost new-accumulated depreciation)

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53
Q

Which entity is responsible for making periodic changes to USPAP?

A

ASB. Appraisal Standards Board.

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54
Q

The real property market is generally classified as a(n) _____ market.

A

Imperfect

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55
Q

“The rate at which vacant space in a property or a group of properties for sale or lease has been or is expected to be successfully sold or leased over a specified period of time” is the definition of a(n) __________ rate.

A

Absorption rate

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56
Q

Under the current qualification criteria, an applicant for Appraiser Trainee must have completed ___ creditable hours of experience.

A

0 hours of experience

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57
Q

The primary purpose of USPAP is to protect

A

Public Trust

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58
Q

The website with the largest amount of demographics information is

A

Cencus.gov

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59
Q

Which entity is responsible for monitoring state appraiser licensing and certification agencies?

A

ASC

Appraisal Subcommittee

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60
Q

Short term money instruments are traded on the

A

Money Market

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61
Q

Who is responsible for appointing members to the ASB and AQB?

A

Board of Trustees

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62
Q

The four components of the Appraiser Qualification Criteria are:

A

Qualifying education, examination, experience, continuing education

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63
Q

As part of the overall requirement for continuing education, certified and licensed appraisers must complete the 7-Hour National USPAP Update Course or its equivalent ________ calendar year(s).

A

every 2

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64
Q

Twenty years ago, most appraisal reports that were sent electronically were sent using _____ technology; today, most appraisals are sent electronically using a _______ format.

A

EDI, PDF

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65
Q

Low interest rates encourage __________, while high interest rates encourage _________.

A

borrowing, saving

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66
Q

When comparing printers, make sure to compare the cost per

A

Printed page

67
Q

A problem with the real property market is that the amount of ________ is slow to change.

A

Supply

68
Q

When estimating the value of a fireplace in a single-family home, the most important principle is the principle of

A

Contribution

69
Q

Normally the first step in highest and best use analysis is to research the uses that are

A

Legally permissible

70
Q

The Uniform Commercial Code covers the sale of goods over $________.

A

500

71
Q

The principle of supply and demand states that the price of a commodity, good, or service varies __________, but not necessarily _____________, with demand.

A

directly, proportionately

72
Q

“A business arrangement in which two or more persons jointly own a business and share in its profits and losses” is the definition of

A

partnership

73
Q

What is the purpose of a state’s statute of frauds?

A

prohibits fraud in real estate transactions

74
Q

Multiple Listing Services (MLS) can be utilized for gathering what kind of data

A

general and specific data

75
Q

The basic principle underlying the cost approach is the principle of

A

substitution

76
Q

“Data concerning the property being appraised, comparable sale and rental properties, and relevant local market characteristics” is the definition of

A

Specific Data

77
Q

An appraiser must not allow the intended use of an assignment or a client’s objectives to cause the assignment results to be __________.

A

biased

78
Q

A one­-and-­a-­half-­story house is commonly known as a

A

cape-cod

79
Q

“Data that relates to the four forces that affect real property values—social, economic, governmental, and environmental forces” is the definition of

A

general data

80
Q

If an appraiser uses a cost manual to estimate cost new for a property, the result is

A

replacement cost

81
Q

The ground rent capitalization method should only be used when appraising a property that is

A

income producing/suitable for income production

82
Q

The first step in the valuation process is

A

define the problem

83
Q

The most complex method of site valuation is the _______________ method.

A

subdivision development

84
Q

Which of the stages in the life cycle of a market area does not always occur?

A

revitalization

85
Q

The cost approach formula states that reproduction or replacement cost new _______________, _______________ equals property value.

A

minus depreciation, plus site value

86
Q

A short-lived item is a building component with an ___________ life that is shorter than the ___________ life of the entire structure.

A

Expected remaining economic,

Remaining economic

87
Q

In a market value appraisal, every comparable sale should have been sold in an _______________ transaction, with no undue _______________.

A

arm’s length, duress

88
Q

An entrepreneur is taking on a development project, and by his calculations, he expects to receive a 25% return on his investment in the project. This 25% figure represents

A

entrepreneurial incentive

89
Q

Which was the earliest form of electrical wiring?

A

knob and tube

90
Q

An estimate of remaining economic life is required by

A

VA

91
Q

“An amount paid for the use of land, improvements or a capital good” is the definition of

A

RENT

92
Q

“A method of estimating land value in which the depreciated cost of the improvements on an improved property is calculated and deducted from the total sale price to arrive at an estimated sale price for the land” is the definition of the ___________ method of site valuation

A

extraction

93
Q

GRMs are derived by dividing the __________ by the property’s ___________ at the time of sale.

A

sale price, gross monthly unfurnished market rent

94
Q

When measuring a condominium you should calculate ____ using _______ measurements.

A

GLA, interior

95
Q

“The estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvements, using modern materials and current standards, design, and layout” is the definition of__________ cost.

A

Replacement

96
Q

J-bolts are used to anchor the _________ to the __________.

A

sill plate, foundation

97
Q

Parging is used on which kind of foundation wall?

A

concrete block

98
Q

Construction materials and workers’ wages are examples of __________costs.

A

direct

99
Q

An appraisal with an effective date at some point in the future is called a(n) ___________ appraisal.

A

prospective

100
Q

The Fannie Mae Single Family Comparable Rent Schedule is designated as Form

A

1007

101
Q

EIFS is also known as

A

synthetic stucco

102
Q

Architectural and engineering fees are examples of _____________ costs.

A

indirect

103
Q

The “summation approach” is another name for the _______________

A

cost approach

104
Q

It is common in appraisal reports to include a map that shows the location of the _______________.

A

subject property and comparable sales

105
Q

Condemnation occurs when a municipality exercises

A

Eminent domain

106
Q

Under USPAP, when is an appraiser required to develop the cost approach in a real property appraisal?

A

When it is necessary for credible results

107
Q

“Expenditures or allowances for items other than labor and materials that are necessary for construction, but are not typically part of the construction contract” is the definition of

A

indirect costs

108
Q

“Improved land or a lot in a finished state so that it is ready to be used for a specific purpose”.

A

site

109
Q

The method that estimates land value based on a percentage of the total property value is the _______________ method.

A

allocation

110
Q

The most commonly used method for valuing sites is the ____________ method.

A

sales comparison

111
Q

“A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis” is the definition of

A

hypothetical condition

112
Q

Building permits and worker’s compensation are examples of __________costs.

A

direct

113
Q

Flood maps are prepared by

A

FEMA

114
Q

Soil maps produced by the Natural Resources Conservation Service are based on

A

Aerial Maps

115
Q

“The amount by which contract rent exceeds market rent at the time of the appraisal….” is the definition of __________ rent.

A

Excess

116
Q

The most common heating systems in residential construction today are

A

Forced warm air

117
Q

Developers often value land on a basis of price per

A

buildable unit

118
Q

Fannie Mae requires a single­-unit residential appraisal report to include photographs of

A

the subject property and comparable sites

119
Q

What are the three general types of depreciation?

A

physical, functional, and external

120
Q

The identification of relevant characteristics is a judgment made by

A

the appraiser

121
Q

When appraising a duplex, an appraiser should use __________ area.

A

gross building

122
Q

Each written appraisal report must contain the date

of

A

the report and the effective date of the appraisal

123
Q

“An element of comparison in the sales comparison approach; comparable properties can be adjusted for differences in the motivations of either the buyer or a seller in a transaction”

A

conditions of sale

124
Q

The cost estimating method most commonly used by residential appraisers is the ____________ method.

A

Comparative unit

125
Q

Appraisers are cautioned to identify the exact _______________ of market value, and its _______________, applicable in each appraisal completed for the purpose of market value.

A

definition, authority

126
Q

“The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease” is the definition of _______________.

A

leasehold interest

127
Q

In the age-life method of estimating depreciation, the ___________ age is divided by the ____________ life.

A

effective age, total economic life

128
Q

Price per room is a common unit of comparison when appraising

A

2-4 unit residential properties

129
Q

Market condition adjustments should always be calculated from the time of the ________ to the ___________.

A

contract, effective date of the appraisal

130
Q

What unit of measurement is typically used for single-family homes?

A

gross living area

131
Q

Which type of depreciation occurs off the site?

A

external

132
Q

Appraisal fees are examples of _______________ costs.

A

indirect

133
Q

The valuation process is a systematic procedure employed to provide the answer to a(n) _______ question about the value of _________.

A

client’s, real property

134
Q

The results of a _________ test will determine if there is suitable drainage and the size of the drain field that will be required for a septic system.

A

percolation

135
Q

Materials that transfer energy quickly are called __________ and those that transfer energy slowly are called __________.

A

conductors, insulators

136
Q

In what type of heating system would you find an expansion tank?

A

hot water

137
Q

What is another name for “indirect costs”?

A

soft costs

138
Q

In the sales comparison approach, we always adjust the _________; we never adjust the ____________.

A

comparable sales, subject property

139
Q

“The actual rental income specified in a lease” is the definition of ___________ rent.

A

contract

140
Q

The SCOPE OF WORK RULE says that in each real property appraisal assignment, the appraiser must _______ the problem to be solved, and determine and perform the scope of work necessary to develop ________ assignment results.

A

identify, credible

141
Q

When appraising a duplex, an appraiser should use __________ area.

A

gross building

142
Q

In the sales comparison approach, sales data on __________ sales should be collected.

A

at least three

143
Q

An appraiser encounters an underground storage tank and there are no signs of leakage or failure. An appraisal could be performed under the presumption that the tank is not leaking and the property is not contaminated. This would be an example of a(n)

A

extraordinary assumption

144
Q

The _______________ method has good application in valuing land in rural areas and in older, urban areas.

A

extraction

145
Q

Early ductless heating systems were called

A

gravity systems

146
Q

Building permits and worker’s compensation are examples of __________costs.

A

direct

147
Q

The most complex method of site valuation is the _______________ method.

A

subdivision development

148
Q

If a comparable property sells with atypical financing, we may have to make an adjustment for ___________.

A

financing terms

149
Q

The most common unit of comparison for land in rural areas is price per _______.

A

acre

150
Q

The intended user of an appraisal is the __________ and any other user, as identified by _________.

A

client, name or type

151
Q

“The process of valuing a universe of properties as of a given date using standard methodology, employing common data, and allowing for statistical testing” is the definition of

A

Mass Appraisal

152
Q

Extensive research on current construction trends and figures is conducted by

A

NAHB

153
Q

Keyways are employed in which type of foundation walls?

A

Poured Concrete

154
Q

Today the _______________ technique of site valuation is used primarily in highest and best use analysis.

A

land residual

155
Q

Segregated cost method is another name for the _________ method.

A

unit-in-place

156
Q

The URAR form can be used to report the appraisal of which of the following property types?

A

One-unit property
One-Unit with an accessory unit
Unit in a PUD

157
Q

Which site valuation methods should only be utilized when the subject property is income-producing by nature?

A

Land residual and ground rent capitalization

158
Q

“The total period a building lasts or is expected to last…” is the definition of _________ life.

A

physical

159
Q

The credibility of assignment results is always measured in the context of the _______________.

A

intended use

160
Q

“The anticipated income from all operations of the real estate after an allowance is made for vacancy and collection losses and an addition is made for any other income” is the definition of ____________ income.

A

effective gross

161
Q

A management fee usually is based on a percentage of the _________ income.

A

gross

162
Q

A _______________ home has a permanent steel chassis, wheels and axles.

A

Manufactured

163
Q

Drilled wells need to use __________ until the drilling enters ___________.

A

Casing, bedrock

164
Q

Which type of valuation analysis would typically NOT include a separate site valuation?

A

Gross rent multiplier

Appraiser Trainee Exam (3 decks)

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