Report Writing

Question 1

A partially enclosed body of water where saltwater from the sea mixes with freshwater is a(n)
Wetlands
Flood Plain
Marsh
Estuary

Answer 1

Estuary

Question 2

According to USPAP, an appraisal report can be delivered:
Orally only
Written only
Either orally or written
Noe above

Answer 2

Either orally or written

Question 3

According to USPAP, whie following items can simply be stated in an Appraisal Report?
The appraiser’s name, any extraordinary assumptions, and a property sales history
The real property interest appraised, the effective date of the appraisal, the type of appraisal report
summae information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses
The scork, the problem to be solved, and any hypothetical conditions

Answer 3

The real property interest appraised, the effective dae appraisal, the typraisal report

Question 4

An appraiser is appraising a 3-unit residential property for a Fannie Mae lender. Which form should he use to report the result of this appraisal?
1004
1073
1025
Either 1004 or 1025

Answer 4

1025

Question 5

An appraiser receives an appraisal assignment from a lending institution, to be reported using the URAR form. The appraiser determines that the Cost Approach is necessary for the productiedible results. What should she do?
Not develop the Cost Approach because the form does not require it
Obtain the client’s permission to not develop the Cost Approach
Develop the Cost Approach and put it in the report
Develop the Cost approach but omit it from the report

Answer 5

Develop the Cost Approach and put it in the report

Question 6

Applying ?best practice?, where should a table of contents appear in an Appraisal Report?
In the scope of work section
After the transmittal letter
It is not necessary to have a table of contents
As an addendum to the report

Answer 6

After the transmittal letter

Question 7

As part of your ur appraisal scope of work rk, you decided not to perform certain research or take actions that you felt inappropriate, but that may be expected by an intended user. Where would you explain that in your narrative report?
In the scope of work
In the general assumptions and limiting conditions
In the economic analysis
In the transmittal letter

Answer 7

In the scope of work

Question 8

At a macro level, why should you always identify and describe the location and type of hospitals and medical centers in an area?
Because there are so few hospitals nationwide, many people fly in from other area of the e country to obtain medical care
Because that is a major consideration to mini-storage center tenants
Because that is an important consideration to industrial manufacturing buildings
Because no matter what type of property you are appraising residents, employers, non-resident employees, tenants and visitors will always be concerned about proximity to and availabilidical care

Answer 8

Because no matter what tyoperty you are appraising residents, employers, non-resident employees, tenants and visitors will always be concerned about proximity to and availabilidical care

Question 9

Before sending the Appraisal Report to the intended user, why should you always check the tabntents?
To make sure that you included one
To make sure that it reflects the inclusineral assumptions and limiting conditions
To avoid be accuseparing a careless appraisal report
To see that it is accurate and that you have placed the appraisal report pages in the correct order

Answer 9

To see that it is accurate and that you have placed the appraisal report pages in the correct order

Question 10

Before writing your conclusion about the present or future growth or decline of area, which of the following is a good question to ask yourself?
Will the area’s growth stop momentarily or continue into the foreseeable future?
Will the area’s tax rate increase or decrease?
Will the local professional sports team ever win a championship and financially benefit the area?
What impact will the next presidential election have on the community?

Answer 10

Will the area?s growth stop momentarily or continue into the foreseeable future?

Question 11

Communities are often influenced by the cities, counties or other communities they are near. When should such proximity be included in a location and surroundings section ?
Whenever it exists
When the nearby community includes comparable properties
When such proximity beneficially or adversely impacts the community in which the subject is located
When the nearby community is run by the same political party as the community in which the subject is located.

Answer 11

When such proximity beneficially or adversely impacts the community in which the subject is located

Question 12

Functional obsolescence is the impairment of functional capacity of improvements according to market _______________.
expectations
trends
tastes and standards.
value

Answer 12

tastes and standards.

Question 13

Geographic information systems (GIS) employ:
Layeformation
Topography simulations
3-D photography
Drones

Answer 13

Layeformation

Question 14

How is the access to the balcony or patio ar apartment typically provided?
Through a closet-like door off either the living room, den, dining room or bedroom
By sliding glass doors off either the living room, den, dining room or bedroom.
By climbing a ladder from the interior courtyard
Through a large, operable window off either the living room, den, dining room or bedroom

Answer 14

By sliding glass doors off either the living room, den, dining room or bedroom.

Question 15

How would you explain how the appraiser obtained a market-derived cap rate?
That the appraiser derived the cap rate from information obtained from recent appraised of other properties in the marketplace
That the appraiser derived the cap rate from opinions obtained from speaking with other appraisers and industry participants active in the current marketplace
That the appraiser derived the cap rate from information obtained from recent sales in the marketplace
That the appraiser derived the cap rate after speaking with local tax assessor and ascertaining what they are currently using in the marketplace

Answer 15

That the appraiser derived the cap rate from information obtained from recent sales in the marketplace

Question 16

If a site is located in a flood zone X how would you summarize that?
As outside the 500 years flood zone, an arnimal flooding and no concern
As an arbstantial flooding
As an area within the 100 year flood zone
As an area that requires flood insurance

Answer 16

As outside the 500 years flood zone, an arnimal flooding and no concern

Question 17

If Chinese drywall exists in a building why should it be summarized?
Because it was imported and implies a higher quality than American manufactured drywall
Because it is more sturdy and durable than American manufactured drywall
Because it can be glued to studs as opposed to being nailed or screwed
Because it has been known to pose a serious environmental concern and cost to remove and replace

Answer 17

Because it has been known to pose a serious environmental concern and cost to remove and replace

Question 18

If public water and sewer is not currently available to the site, what should an appraiser investigate and (if appropriate) summarize?
If public water and sewer will ever be available in the near future
If the community has a municipal utilities authority or similar agency
The coch public water and sewer
The qualie drinking water that is supplied by the local water company

Answer 18

If public water and sewer will ever be available in the near future

Question 19

If within the location and surroundings section you explain that the subject property provides a shuttle service to connect with public transportation or to something else, where else will such service also need to be addressed in the Appraisal Report?
In the Cost Approach
In the Sales Comparison Approach
In the Income Approach
It does not need to be addressed anywhere else

Answer 19

In the Income Approach

Question 20

If you are explaining that parking income is included as additional income, what else is it prudent for an appraiser to investigate and discuss, in addition to stating the income from parking?
Establish its durability by reviewing the past 10 year?s history, verified by tax returns
Conduct a survat other developments or nearby public parking garages charge for parking and discuss if the subject?s charges are above, below or in line with the competition
Ascertain if the spaces are leased daily, monthly , semi-annually or annually and if the leases are guaranteed
Ascertain the numbaces and the current and historic applicable vacancy factor

Answer 20

Conduct a survat other developments or nearby public parking garages charge for parking and discuss if the subject?s charges are above, below or in line with the competition

Question 21

If you are writing a location and surroundings section using the techniqscribing the macro area, micro area and immediate vicinity, which should you describe objectively and from a ?high elevation”?
The immediate vicinity
Turn-by-turn directions from the subject property to the county courthouse
The macro area
The histoe area back to 1800

Answer 21

The macro area

Question 22

If you have been advised by your client to appraise the property as if it is free and cley environmental concerns because, such concerns are unknown at the tie appraisal, what must you summarize and provide in the appraisal report?
A disclaimer in your general assumptions and limiting conditions that you are not an environmental expert
The proper clear and conspicuous extraordinary assumption disclosure
The proper clear and conspicuous hypothetical condition disclosure
Nothing as long as you provided a disclaimer in your general assumptions and limiting conditions that you are not qualified to address such matters

Answer 22

The proper clear and conspicuous extraordinary assumption disclosure

Question 23

In a narrative appraisal report, why is it important to include an opinion about the property?s location?
Because the client may not actually read the report
Because the client might not be able to find the location map within the report
Because intended users value the appraiser?s opinion about the location
The premie question is incorrect; an appraiser must never express an opinion about the property’s location

Answer 23

Because intended users value the appraiser?s opinion about the location

Question 24

In a narrative Appraisal Report, why should you summarize the recreational and cultural facilities that serve an area?
Because the intended user is likely a golfer and will be interested in knowing if golf courses exist
Because they are major employment centers
Because they reflect on and give an impression about the quality of life within a community
Because the cointaining such facilities usually affects the local property tax rate

Answer 24

Because they reflect on and give an impression about the qualife within a community

Question 25

In a perfect environment what should a well-written narrative appraisal report do?
It should convince a lender client to provide financing
It should convince a potential purchaser to acquire the property
It should tell the intended user where the property is located
It should tell a story about the property and be designed to lead intended users to draw the same conclusion stated by the appraiser.

Answer 25

It should tell a story about the property and be designed to lead intended users to draw the same conclusion stated by the appraiser.

Question 26

In an Appraisal Report on an improved property what two things do you explain that highest and best use is applied to?
The height and use of the building
Both the land as though vacant and to the property as if improved
Demolition justification and replacement or reproduction cost
Financial feasibility and comparismparables

Answer 26

Both the land as though vacant and to the property as if improved

Question 27

Moe information necessary for problem identification can be obtained by the appraiser through communication with the
Client
Buyer
Lender
Assessor

Answer 27

Client

Question 28

Navigable waters are owned and controlled by
either the state or federal government
the federal government
the Coast Guard
state government

Answer 28

either the state or federal government

Question 29

Occasionally a lessor will write a lease stating that any rent will not begin until a month or more after occupancy. Such clause is usually given as an inducement to lease. This effectively reduces the actual average annual ree lease. Whie following terms would you use to denote such inducement?
A lessee?s benefit
A lessor?s incentive
Free rent
Nothing; I would just take it into consideration and apply the average rent in the income and expense analysis

Answer 29

Free rent

Question 30

Our scope of work decisions are largely determined by the
Client
Intended use
Intended user
Highest and Best Use

Answer 30

Intended use

Question 31

Overall plans that were created when the original zoning ordinances were implemented are called _____.
Regional Plans
Templates
Municipal Ordinances
Master Plans

Answer 31

Master Plans

Question 32

scope of work is
Decided in advance
Always the same
An on-going process
Dictated by USPAP

Answer 32

An on-going process

Question 33

Some leases contain clauses that are potentially harmful to a property?s income, such as an early termination option. If such clauses do exist in an apartment lease, whie following would you use to explain that they are usually not very significant?
Because apartment leases are typically written for one year terms with no formal renewal options so such lease will end in a year or less effectively removing the potential harm
Because apartment owners can often raise their rents more than once a year
Because apartment owners take security deposits they can retain the security deposit to off set the hay such clause
Because an apartment owner that would agree to a harmful clause usually negotiates some tyff set? in the lease to counteract the harm if caused

Answer 33

Because apartment leases are typically written for one year terms with no formal renewal options so such lease will end in a year or less effectively removing the potential harm

Question 34

STANDARDPAP states that in appraising real property, an appraiser must communicate each analysis, opinion, and conclusion in a manner that is __________________.
Definitive and convincing
Not misleading
Beyond reproach
Well-written

Answer 34

Not misleading

Question 35

The appraiser?s signed certification that is included in a real property Appraisal Report must comply with whie following?
The requiremene Appraisal Institute
The requiremene American Sociepraisers
The requiremenPAP Standards Rule 2-3
The requiremee 13th editihe Appraisal Estate?

Answer 35

The requiremenPAP Standards Rule 2-3

Question 36

The Comment to STANDARDPAP says the form, format, and styreport are functioe nee__________________.
Government agencies who use appraisals
Clients only
Borrowers
Intended users and appraisers

Answer 36

Intended users and appraisers

Question 37

The definitions used by accountants and appraisers are different so, which of the following would you use to summarize depreciation as employed by appraisers?
The annual percentage decline in the cost new that was expended to create the building
The difference between the contributory value of a improvement and its cost at the time of the appraisal
The amount of decline that can be applied to the book cost of a property for income tax purposes
The annual percentabuilding?s original cost by dividing the original cost by its estimated life (in years) and taking that amount as a tax deduction

Answer 37

The difference between the contributory value of a improvement and its cost at the time of the appraisal

Question 38

The exclusion any of the three Approaches must be
explained
stated
summarized
cited

Answer 38

explained

Question 39

The Fannie Mae 1004 form (the URAR form) may be used to report an appraisal on:
All of these answers
units in planned unit developments
co-op units
condominium units

Answer 39

units in planned unit developments

Question 40

The SCORK RULE applies to ________ assignments?
all
only appraisal
only Appraisal Review
only Appraisal and Appraisal Review

Answer 40

only Appraisal and Appraisal Review

Question 41

There are three traditional techniques that appraisers use to estimate the cost of creating a structure; comparative-unit, unit-in place and quantity survey. Why is it NOT necessary to describe all three in a narrative Appraisal Report?

Because the intended user only needs to know which method was employed. Explaining the other two is of no benefit to the intended user

Because most intended users already know about the three traditional techniques and do not need the appraiser to explain them in the appraisal report

Because the scope of work did not specifically explain that the three traditional methods would be investigated and only one selected for use by the appraiser

Because the intended user wants to know that the method employed was as good as or better than using one of the other two techniques to secure the estimates of cost.

Answer 41

Because the intended user only needs to know which method was employed. Explaining the other two is of no benefit to the intended user

Question 42

To illustrate population and similar trends, what can an appraiser include in their report to visually aid the intended user?s understanding?
Street-level photographs
A grid showing the statistical data and trends
Aerial photographs
A link to the Census Bureau’s website, so the intended user can do his/her own research

Answer 42

A grid showing the statistical data and trends

Question 43

Under SR 2-3, the appraiser must certify they have no _________interest in the subject property.
present
unrevealed
present or prospective
present or past

Answer 43

present or prospective

Question 44

Under the USPAP definitisignment results, __________are not assignment results.
Market studies
Opinion letters
Physical characteristics
External market factors

Answer 44

Physical characteristics

Question 45

USPAP says that in an Appraisal Report you must ____________ the Intended Use.
summarize
provide
identify
state

Answer 45

state

Question 46

Wetlands and waterways regulation and permitting falls under
U.S. Army Corgineers
FEMA
U.S. Fish and Wildlife
NOAA

Answer 46

U.S. Army Corgineers

Question 47

What appraisal term is defined as “The most probable price, specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite for a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self interest, and assuming that neither is under undue duress”?
Investment value
Market value
Property rights value
Book value

Answer 47

Market value

Question 48

What appraisal terms is defined as: ?The process of deriving a value indication for the subject property by comparing similar properties that have recently sold with the property being appraised, identifying appropriate unit of comparison and making adjustments to the sale prices (or unit prices) as appropriate comparable properties based on relevant, market derived elements of comparison??

The sales comparison approach
The cost approach
The income approach
The investor?s approach

Answer 48

The sales comparison approach

Question 49

What are you summarizing when you state that this is ?the process in which a value indication is derived in the Sales Comparison Approach and may employ quantative or qualitative techniques either separately or in combination??
The highest and best use analysis
The process of reconciliation
The process of comparative analysis
The process of correlation

Answer 49

The process of comparative analysis

Question 50

What benefit can you explain that the impanewly constructed commuter rail station location can have on a community?
None
It might add a few local jobs
That they can and usually do stimulate the constructiw housing developments and commercial buildings in reasonable proximity to the station.
That while desirable they usually do not stimulate the constructiw housing developments and commercial buildings in reasonable proximity to the station

Answer 50

That they can and usually do stimulate the constructiw housing developments and commercial buildings in reasonable proximity to the station.

Question 51

What can you explain as the MOST COMMON reasons why local residents desire convenient public transportation?
Because they want convenient access to a central business district, to access employment centers, to access major medical facilities, to access educational institutions and to access retail facilities
Because they are looking for less expensive transportation than u need to own a car
Because public transportation allows them to travel hundreles in a single day
Because they enjoy commuting as it gives them the opportunity to speak with others, is less stressful than driving and affords the opportuniading the daily newspaper

Answer 51

Because they want convenient access to a central business district, to access employment centers, to access major medical facilities, to access educational institutions and to access retail facilities

Question 52

What does ?best practice? suggest an appraiser should do concerning summarizing a property?s compliance with the Americans With Disabilities Act?
Ignore the ADA requirements stating within the general assumptions and limiting conditions that the appraiser is not qualified to address them
To investigate the property for compliance and where appropriate, explain and discuss it in the appraisal report
Discuss the potential for ?grandfathering? that can eliminate any concern about making future improvements to bring the property into compliance
Check to see if the lavatories, halls, elevators and parking comply with the ADA guidelines and if so declare the building in compliance a concern

Answer 52

To investigate the property for compliance and where appropriate, explain and discuss it in the appraisal report

Question 53

What does USPAP requie appraiser concerning any extraordinary assumptions or hypothetical conditions used in an Appraisal Report?
They must be clearly and conspicuously disclosed
They must appear in multiple places in the Appraisal Report
There must be multiple indicatiolue developed and reported
They must be included in the transmittal letter and the signature page

Answer 53

They must be clearly and conspicuously disclosed

Question 54

What is a good way to begin a site summary?
By u introductory sentence that summarizes the property?s current owner and reason for the appraisal
By u introductory sentence that summarizes the property?s primary characteristics and physical location
By u introductory sentence that summarizes the appraisal problem to be solved and how that relates to the site
By u introductory sentence that summarizes the property?s buildings and whether they are owner-occupied or tenant-occupied

Answer 54

By u introductory sentence that summarizes the property?s primary characteristics and physical location

Question 55

What is a good way to begin writing an immediate neighborhood or vicinity description?
By identifying and summarizing what immediately adjoins the subject north, south, east and west
By identifying the subject?s address
By identifying the street the subject has its largest frontage or exposure to
By identifying if it is in a residential or commercial neighborhood

Answer 55

By identifying and summarizing what immediately adjoins the subject north, south, east and west

Question 56

What is a good way to enhance your summary to the intended use rental market survey you conducted and the comparables you relied upon?
By providing a spreadshel of the sales in the market area, with the comparable sales you used highlighted in yellow
By including a comparative gre information, supplement by photogrape comparables and a map showing their respective locations
By including copie appropriate pagy national surveys
By including a photograph, aerial photograph and site ple subject

Answer 56

By including a comparative gre information, supplement by photogrape comparables and a map showing their respective locations

Question 57

What is a good way to show and explain the various terms of a commercial lease of a building you are appraising to the intended user?
To photograph the front page of each ch lease and include it in the report, so the intended user will know that you read them
By including a rent roll
By including exact copies of each ch lease in the report?s addendum
To create and include lease summaries that detail the important terms of each ch lease

Answer 57

To create and include lease summaries that detail the important terms of each lease.

Question 58

What is the benefit of a community of having a diverse economy?
It provides different level of employment and wage levels
It provides more employment stability than an economy concentrated in one or two industries
It can accommodate educated as well as uneducated individuals
It provides ?second job? opportunities for military families

Answer 58

It provides more employment stability than an economy concentrated in one or two industries

Question 59

What is the best way to explain how the appraiser’s highest and best analysis leads to the conclusion of what improvements a buyer would make to a site to maximize its value?

Separately discuss financial feasibility, zoning, utility availability and procurement of rents
Separately discuss reproduction or replacement cost, availability of building permits and financial feasibility
Separately discuss, explain and expound on each of the four test criteria
Separately discuss the availability of equity capital, the potential to obtain a zoning approval and the cost of creating the building and improvements

Answer 59

Separately discuss, explain and expound on each of the four test criteria

Question 60

What is the sournctional obsolescence?
Functional obsolescence comes from increased vacancy due to the functioe tenants being terminated
Functional obsolescence comes from soe building?s equipment (HVAC, elevators, etc) not functioning properly and needing repairs
Functional obsolescence comes from a physical wearing awe building and improvements
Functional obsolesence comes from a flaw in the property such as a design, materials other thing that adversely affects the utility

Answer 60

Functional obsolesence comes from a flaw in the property such as a design, materials other thing that adversely affects the utility

Question 61

What is typically the first thing that a client sees in the Appraisal Report?
The definitirket value
An index
The appraiser?s resume
The title page

Answer 61

The title page

Question 62

What should you include when summarizing the balconi apartment building?
The tynstruction (concrete, wood, etc.), if they are rail enclosed, if they have a floor covering and how they are accessed.
If they are attractive, if they are landscaped and if they permit use for grilling/barbecuing
If they are included in the rent or if there is an extra charge, if they act as a fire exit and if they are treated with a non-slip surface
Are awning covers permitted, if a mechanical room adjoins and if a storage closet adjoins

Answer 62

The tynstruction (concrete, wood, etc.), if they are rail enclosed, if they have a floor covering and how they are accessed.

Question 63

What should you use the phrase ?hourship? to describe?
Houses where people can congregate
That religious facilitie various faiths and denominations, i.e more than one specific faith or religion, exist
That different typusing exist in the area
That houses as opposed to tents or other facilities are used for religious congregating purposes.

Answer 63

That religious facilitie various faiths and denominations, i.e more than one specific faith or religion, exist

Question 64

What term can be applied to summarize the dock shelters, load levelers, trailer restraints, bollards and bumpedustrial buildings?
Loading dock appointments
Quality improvements
Building appendages
Tenant improvements

Answer 64

Loading dock appointments

Question 65

What typundry facilities are typically featured and summarized in an apartment complex?
None unless brought into the unit and owned by the tenant
$20 monthly credit at a nearby laundromat
Either in unit washers and dryers or coin operated washers and dryer located in common/central laundry rooms
Laundry tubs in the basement for hand-washing iteothing

Answer 65

Either in unit washers and dryers or coin operated washers and dryer located in common/central laundry rooms

Question 66

What tyre departments are usually found in a township?
A “trainee” fire department
One with a paid full-time police department where the officers also serve as the fire department
Either a volunteer or paid full-time department
One with four engines and a hook and ladder

Answer 66

Either a volunteer or paid full-time department

Question 67

When a commercial lease requires the tenant to pay and or perform and pay for ae property?s real estate taxes and operating expenses, whie following terms would you use to denote such a lease?
A gross lease
A gross plus lease
A net, net, net or fully net lease
A landlord?s lease

Answer 67

A net, net, net or fully net lease

Question 68

When a new tenant is leasing space in an office building whie following is something they always want to know?
What tynant finish is provided by the landlord
How many parking spaces will be specifically designated for them
What tyergy efficient insulation the building features
What are the building?s management agent?s office hours

Answer 68

What tynant finish is provided by the landlord

Question 69

When a Sales Comparison Approach is applicable to an appraisal assignment, USPAP requires an appraiser to analyze comparable sales data as are available to indicate a value conclusion. In that context how would you explain what USPAP meant by the ue word ?sales data??
Any agreemenle, options and listine comparable properties that occurred prior to the effective date
Any agreemenle, options and listine subject property that expired prior to the effective date
Any agreemenle, options and listine subject property that were proposed by never executed prior to the effective date
All agreemenle, options and listine subject property current e effective date

Answer 69

Any agreemenle, options and listine comparable properties that occurred prior to the effective date

Question 70

When an on site swimming pool, clubhouse and/or tennis courts are featured at an apartment complex, aside from providing a basic physical description, what else should an appraiser be sure to also explain about each?
If they are free to tenants and their guests or if there are charges
If they are available 365 days a year
Any repairs that have been made to the pool or tennis court within the prior five years
If swimming and tennis lessons are available to residents

Answer 70

If they are free to tenants and their guests or if there are charges

Question 71

When and why would you use the descriptive term ?saw toothed? loading docks to summarize the loading doc of a industrial building?
When the building cannot accommodate ?straight in? truck loading and the loading docks were created on a 45 degree angle.
When the architect used the edhandsaw to sketch in the loading docks
When the concrete of the loading docks was cut in with a power saw
When the loading docks were created by cutting holes in the sie building with a gasoline-powered saw

Answer 71

When the building cannot accommodate ?straight in? truck loading and the loading docks were created on a 45 degree angle.

Question 72

When appraising an industrial building, why is important to summarize the ceiling height under beam?
Because it affects how high an occupant?s product can be stacked and therefore it also affects rent and leasing
Because the building plans may not clearly show the various heights under beam.
Because it can benefit the appraiser?s ability to forecast the market rent
Because the appraiser is legally required to measure and report the ceiling height to within 1 inch

Answer 72

Because it affects how high an occupant?s product can be stacked and therefore it also affects rent and leasing

Question 73

When appraising an industrial or flex style industrial-office building why is it important to summarize the amouace that is finished as office space?
Because the building plans may not clearly show the actual amouace currently finished as office space
Because it will affect the way the appraiser develops and analyzes the rental income in the income approach as it is affected by the percentanished office space
Because it will enable the appraiser to be able to separately summarize the office and warehouse or shop finishes
This is not important; the amounished office space does not matter in the apprais industrial or flex building

Answer 73

Because it will affect the way the appraiser develops and analyzes the rental income in the income approach as it is affected by the percentanished office space

Question 74

When creating a narrative appraisal it is ?best practice? to have what follow the title page?
An index
An aerial photograe market area
A cover letter or transmittal letter
A me subject and comparables

Answer 74

A cover letter or transmittal letter

Question 75

When describing a site?s access in an appraisal report, whie following are additional things to consider and summarize?
If the street has curbing
If the street is patrolled by police
If the street is a divided highway with a median strip in froe subject and/or if the subject has 4 way highway access
If the street is properly striped

Answer 75

If the street is a divided highway with a median strip in froe subject and/or if the subject has 4 way highway access

Question 76

When describing an industrial or flex style building, if they exist, why should knock out panels be summarized?
Because their existence shows good planning and foresight
Because they afford leasing flexibility as they can be easily knocked out to accommodate the installatiditional truck dock doors or access ways between adjoining spaces
Because the failure to explain their existence would be misleading , because these panels double the constructie building
Because they are a safety feature as they make it easier to exit the building in the evefire

Answer 76

Because they afford leasing flexibility as they can be easily knocked out to accommodate the installatiditional truck dock doors or access ways between adjoining spaces

Question 77

When describing the road or highway network of township or local community, what should the appraiser be conscious of avoiding?
Including the daily traffic count of the road that serves the subject
Overdoing the description by explaining how they each are individually connected to each other as that is generally assumed.
Failing to state if the road surfaces are blacktop, brick or something else
Describing who is responsible for maintaining the roads

Answer 77

Overdoing the description by explaining how they each are individually connected to each other as that is generally assumed.

Question 78

When discussing when one or moe three traditional approaches to value is inapplicable, what might you say to explain when the Cost Approach becomes unreliable?
It becomes unreliable and often is not used when appraising an income producing property that has aged or was constructed with somewhat unique physical characteristics that make it difficult to estimate its income and expenses
It becomes unreliable and often is not used when appraising a proposed property or a property that is being constructed with somewhat unique physical characteristics that make it difficult to estimate its income
It becomes unreliable and often is not used when a property has aged or was constructed with somewhat unique physical characteristics that make it difficult to estimate its cost new or estimate its depreciation accurately
It becomes unreliable and often is not used when a property is brand new and was constructed with somewhat unique physical characteristics that make it easy to estimate its cost new

Answer 78

It becomes unreliable and often is not used when a property has aged or was constructed with somewhat unique physical characteristics that make it difficult to estimate its cost new or estimate its depreciation accurately

Question 79

When explaining and summarizing the steps appraisers take to develop a Sales Comparison Approach, which is the first step you would explain that they do?
Verify the information
Select a unmparison
Research the market for comparable sales, listings, etc.
Write a draft narratie sales comparison approach

Answer 79

Research the market for comparable sales, listings, etc.

Question 80

When explaining highest and best use, what are the four ?tests? that you need to explain about the property?s use?
Legally permissible, physically possible, financially feasible, maximally productive
Legally permissible, appropriately supported, socially acceptable, uniquely profitable
Height, best use, leverage, optimturn
Zoning, financing, utility availability, availabiliuity

Answer 80

Legally permissible, physically possible, financially feasible, maximally productive

Question 81

When explaining the kitchen featured in an apartment unit, what should the appraiser summarize?
Just the appliances and if the cooking is gas or electric
Ae appliances, if the cooking is gas or electric, the cabinetry, the countertops and back splash, the sink and faucet
Ae appliances, if the cooking is gas or electric and if a fan/light fixture is provided
Ae appliances, if the cooking is gas or electric and if a washer and dryer are provided are they located in the kitchen and if the dryer is gas or electric powered

Answer 81

Ae appliances, if the cooking is gas or electric, the cabinetry, the countertops and back splash, the sink and faucet

Question 82

When explaining your scope of work in an Appraisal Report, what should avoid doing?
Providing extensive detail
Simply stating the information
Using more than one page
Providing lengthy descriptions

Answer 82

Simply stating the information

Question 83

When identifying a subject property in a photograph or on a map, what is the color that should be used to outline or indicate the subject property?
Orange
Green
Blue
Red

Answer 83

Red

Question 84

When performing a shopping center appraisal, whie following location items would ecial interest to an owner, their tenants, and accordingly the intended user, as they can affect the rents?
The location and proximity to grocery shopping
The location and proximity to a public swimming pool
The location and proximity to a shipping port
The per capita income and retail purchasing powe population within a 3 to 5 mile radius

Answer 84

The per capita income and retail purchasing powe population within a 3 to 5 mile radius

Question 85

When performing an apartment or mobile home park appraisal, whie following location items would ecial interest to an owner, their tenants, and accordingly the intended user, as they can affect the rents?
The location and proximity printing establishments
The location and proximity to grocery shopping
The location and proximity to a shipping depot
The location and proximity to a truck stop

Answer 85

The location and proximity to grocery shopping

Question 86

When performing an apprais?flag? hotel in a central business district, whie following would the intended user be interested in knowing about such property?s location?
The per-capita income and retail purchasing powe population within a 3 to 5 mile radius
The qualie local public school system
The location and proximity to a convention center
The location and proximity to support services such as copy centers and a post office

Answer 86

The location and proximity to a convention center

Question 87

When performing an apprais?flag? hotel occupying a suburban highway location, whie following would the intended user likely be interested in knowing about such property?s location?
The location and proximity to support services such as copy centers and a post office
The location and proximity to a new housing development
The location and qualie local public school system
The visibility and eacess from the highway

Answer 87

The visibility and eacess from the highway

Question 88

When performing an appraisnursing home, whie following would the owner, potential occupants and accordingly the intended user be most interested in knowing about the property?s location?
The locatid proximity to public transportation
The locatid proximity to a limousine service
The locatid proximity to a convention center
The locatid proximity to a hospital

Answer 88

The locatid proximity to a hospital

Question 89

When performing an appraisrecreational or resort hotel location, whie following would the intended user be most interested in knowing about the property?s location?
The location and proximity to public schools or housrship
The location and proximity to a limousine service
The location and proximity to public transportation
The location and proximity to the recreational area they provide or are close to

Answer 89

The location and proximity to the recreational area they provide or are close to

Question 90

When performing an office building appraisal, whie following location items would ecial interest to an owner, their tenants, and accordingly the intended user, as they can affect the rents?
The location and proximity to grocery shopping
The location and proximity to a public swimming pool
The location and proximity to support services such as copy centers and a post office
The location and proximity to a good public school system

Answer 90

The location and proximity to support services such as copy centers and a post office

Question 91

When providing a summae subject site, what should the appraiser be sure to do?
Include ae meaningful aspects associated with the subject?s parcnd
Include an aerial photograe site
Include a surface area photograe site
Provide turn-by-turn directions from the airport to the subject property, so an out-of-town intended user can fly into town to personally observe the property

Answer 91

Include ae meaningful aspects associated with the subject?s parcnd

Question 92

When providing an aerial photograph, photograe subject building, or map as a visual aid to show the subject, how should you always identify the subject?
Outlined in red or with a red colored arrow pointing to it
With a letter tied to an index
With a yellow sticky note
With a typed label

Answer 92

Outlined in red or with a red colored arrow pointing to it

Question 93

When summarizing a roof what will the intended user want to know?
What it looks like, so be sure to photograph it when you are at the property, or include an aerial photo in the report
How recently it has been repaired and if it leaks
If it has solar panels, and do they protect the roof
The style or type of the materials, age, condition and warranty information.

Answer 93

The style or type of the materials, age, condition and warranty information.

Question 94

When summarizing a site?s zoning whie following should be stated and/or explained?
If the site is surrounded by other sites with the same zoning classification
If the ordinance requires the preservatiy open space.
When the property was approved and the zoning classification at the time
The current zoning classification, if the subject received any variances, if the site complies with current zoning and if it is a legal conforming or legal non-conforming use.

Answer 94

The current zoning classification, if the subject received any variances, if the site complies with current zoning and if it is a legal conforming or legal non-conforming use.

Question 95

When summarizing an industrial building that features a railway siding that goes into the building what benefit can an appraiser attribute to such inside loading?
The loading area will always benefit from the building?s interior lighting
Shipping by train is less efficient than shipping by truck, so this offers no benefit
It allows more direct supervision by the foreman
it prevents loe building?s HVAC and provides ?secured? loading and unloading

Answer 95

it prevents loe building?s HVAC and provides ?secured? loading and unloading

Question 96

When summarizing public rail transportation that is interconnected with public bus service whie following terms can be used to summarize such bus service?
A feeder bus route
A surface bus route
An inter-connector route
A rail support route

Answer 96

A feeder bus route

Question 97

When summarizing the windows in a building, what is important to summarize?
Their size and shape, and whether or not they are tinted
Their condition, if they are operable, if they are single or double pane insulated glass, and (as appropriate) if they have screens.
If they are the original windows
The manufacture windows, how clear they are, and whether they have bars

Answer 97

Their condition, if they are operable, if they are single or double pane insulated glass, and (as appropriate) if they have screens.

Question 98

When the Cost Approach is necessary for credible appraisal assignment results, what does USPAP require the appraiser to do?
Develop an opinion of site value by an appropriate appraisal method or technique
Analyze such comparable sales data as are available to indicate a value conclusion
Use a hypothetical condition in developing an indication of value lue
Develop and estimate of building replacement cost by unational cost service publication

Answer 98

Develop an opinion of site value by an appropriate appraisal method or technique

Question 99

When the lease of a retail tenant contains a co-tenancy and/or non-compete clause in its lease, why is it important to explain and summarize the existence of such a clause?
Because the appraiser is expected to develop an opinion of the legality and enforceability of the lease documents
Because they can potentially have a negative impact on a property’s future income and value
Because the client may not have informed you that such clauses existed
Because they will lead to the tenant’s filing a bankruptcy
lead to the tenant?s filing a bankruptcy

Answer 99

Because they can potentially have a negative impact on a property?s future income and value

Question 100

When they exist, how would you explain a ?super flat floor? in an industrial building?
A super flat floor is one that was especially designed for construction on steeply sloping sites
A super flat floor is just thicker and more highly broom finished than typical industrial building floors
Super? flat (concrete) floors are required for high ceiling buildings (e.g., 40’ or higher clear under beam) to support high racks for very high stackioduct
As the flool industrial buildings are basically flat, you would simply summarize them as not any different than normal flat floors

Answer 100

Super? flat (concrete) floors are required for high ceiling buildings (e.g., 40’ or higher clear under beam) to support high racks for very high stackioduct

Question 101

When writing a county summary why can it be meaningful to identify and include the county seat?
Because that is usually where the county government is seated and conducts its business
To explain to the intended user what a county seat is, in case he/she does not know
To show that you understand what a county seat is
Because they are a significant if not major focus of business and commerce within a county

Answer 101

Because they are a significant if not major focus of business and commerce within a county

Question 102

When writing a location and surroundings sectinarrative appraisal report, why should you try to summarize and minimize the location information while maintaining its integrity?
Because the lenge description is up to you as the appraiser and if you are not careful it could consume way too many pages
So that the information does not mislead and/or bore the intended user
It demonstrates good writing skill
It will consume far too much time to write everything in detail

Answer 102

So that the information does not mislead and/or bore the intended user

Question 103

When writing a location and surroundings section, if you have discovered and discussed that a new competing facility is being constructed, where else in the appraisal report will you also need to address and discuss that?
In the cost approach
In the sales comparison approach
In the rental market study portie income approach
Nowhere else

Answer 103

In the rental market study portie income approach

Question 104

When writing a micro area description (i.e., a township description), while it should be objective and generic what should it focus on?
It should focus on and discuss more about the national and international trends that affect the subject
It should focus on and expound more about the location aspects that have a more direct effect on the subject property
The qualie public school system as well as nearby institutiogher learning
The population growe state, county, and any nearby city

Answer 104

It should focus on and expound more about the location aspects that have a more direct effect on the subject property

Question 105

When writing a micro area description whie following will you most likely need to address?
If no growth is occurring and explain why as that would be misleading
The numbudent jobs historically available for summer employment
The historic numbliday season temporary jobs typically available
The coing public transportation, i.e, daily bus or commuter rail service

Answer 105

If no growth is occurring and explain why as that would be misleading

Question 106

When writing about most community?s road network or highway system (including any significant bridges) what is important to summarize?
The roads that materially contributed to the past, present and future growth of the community
Their age, any repairs needed, and if repairs are federally or locally funded
The driving time to other nearby communities
A lie most traveled roads, with their interstate, state and local road numbers

Answer 106

The roads that materially contributed to the past, present and future growe community

Question 107

When writing an immediate neighborhood or vicinity description, what do you specifically want to summarize about the subject?s access?
How it can be accessed on weekends and holidays
Specifically how the subject is connected to the road/highway network.
How pedestrians can access it via a concrete or brick pavers type sidewalk
If there is a helicopter port on the ronearby building

Answer 107

Specifically how the subject is connected to the road/highway network.

Question 108

When writing the summae building(s) and improvements, in addition to summarizing the construction details, what is the entire bour summary also going to do for the intended user?
Convey a senality about the building and improvements
Explain the age and efficiene building and improvements
Demonstrate your levowledge about construction
Instill confidence that you adequately inspected and measured the buildings

Answer 108

Convey a senality about the building and improvements

Question 109

When you are writing a conclusion to a micro area description portiur location and surroundings, whie following is a good question to ask yourself to help develop your conclusory paragraph?
How will the community?s projected growth, stagnant growth or decline impact the subject?
What will the current tax rate be
How will the area?s existing public transportation affect the subject
How will the area?s changing weather climate affect the subject?

Answer 109

How will the community?s projected growth, stagnant growth or decline impact the subject?

Question 110

When you identify trends in your Appraisal Report, what additional information will the intended user want to know about these trends?
If the appraiser can ignore them in developing his/her opinions and conclusions
If they affect the subject property?s relationship with its neighboring communities
If they affect the subject?s deferred maintenance costs
If they are temporary or long term and if they may or will be reversed

Answer 110

If they are temporary or long term and if they may or will be reversed

Question 111

Where can an appraiser find the information to summarize a site?s flood plain location/classification?
From the revi old appraisal on a nearby property
From a visual inspection
By obtaining or reviewing a FEMA flood plain map
By asking the client or property owner

Answer 111

By obtaining or reviewing a FEMA flood plain map

Question 112

Where they exist and are meaningful to address within a location and surroundings, why might shipping ports be important and need to be addressed?
Because they are employment centers and often also offer recreational cruises.
Because they exist they should be described to show that you have performed adequate research
Because many bring crude oil to local refineries and periodically require dredging the waterway that adds temporary employment
Because rail transportation is no longer viable, so consumer goods have to be sent by ship

Answer 112

Because they are employment centers and often also offer recreational cruises.

Question 113

Which Fannie Mae form would be used to report an appraisal on a condominium unit?
1004C
1073
1025
2055

Answer 113

1073

Question 114

Which is NOT true of radon?
It can be found in water
It is found naturally in the ground
It smells like sulphur
It is extremely toxic

Answer 114

It smells like sulphur

Question 115

Which is NOT true about the Coastal Barrier Resource System (CBRS)
It applies to certain ocean front areas
It applies to fresh water areas
It applies to the great Lakes
It applies to all 50 states

Answer 115

It applies to all 50 states

Question 116

Which statement is TRUE regarding the 1004 MC addendum form?
It is still required by Fannie Mae but not Freddie Mac.
It is no longer required by Fannie Mae or Freddie Mac.
It is an outdated form and should never be used.
The Departmeterans Affairs (VA) still requires its use in 2-4 family appraisal reports.

Answer 116

It is no longer required by Fannie Mae or Freddie Mac.

Question 117

Which typreciation is generally incurable?
Physical deterioration
Deferred maintenance
External obsolescence
Functional obsolescence

Answer 117

External obsolescence

Question 118

Whie following (if true) can be described as a natural advantaretail site?s location?
That the site has an ?a-cell and d-cell? lane in front.
That the property sits back from the highway and has no visibility
That it offers excellent visibility that provides a free advertising advantage
That it is connected to a public water and sewer system

Answer 118

That it offers excellent visibility that provides a free advertising advantage

Question 119

Whie following are ?special finishes? that, if they exist, you should summarize?
Smoke detectors, fire extinguishers, and carbon monoxide detectors.
Water coolers, conference rooms and reception areas
Standard ceiling lights, electrical outlets, floor moldings
In suite kitchens, baths, extra sinks, cabinets, lead walls, lab hoods and exhaust vents

Answer 119

In suite kitchens, baths, extra sinks, cabinets, lead walls, lab hoods and exhaust vents

Question 120

Whie following are important to every community and should be discussed in a location and surroundings section?
Employment stability and job growth
The nearest national park or other tourist attraction
The numbmmercial properties in the community
The numbtail facilities in the community

Answer 120

Employment stability and job growth

Question 121

Whie following are some meaningful things you should investigate and include in an immediate neighborhood or vicinity description, irrespectie property type being appraised?
Proximity to a fire station, the locatie nearest bus or commuter rail station
Proximity to a river and an auto repair shop
Proximity to gas stations and card and gift shops
Proximity to garden nursery and a clothing store

Answer 121

Proximity to a fire station, the locatie nearest bus or commuter rail station

Question 122

Whie following can be used to summarize the definitiosite?s ingress and egress?
How the site is accessed by pedestrians
Ingress describes the access onto the site while egress describes the access off or oe site
Ingress is the rent generated by the site, while egress is the amouoperty taxes paid
Ingress is how the property is accessed during the day, while egress is how the site is accessed after dark

Answer 122

Ingress describes the access onto the site while egress describes the access off or oe site

Question 123

Whie following explains the purpoe transmittal letter in an Appraisal Report?
To highlight and summarize key aspece appraisal that the intended user will be most interested in
To support and submit the appraiser?s bill
To thank the client for selecting the appraiser for the assignment
To detail the time the appraiser expended in preparing each individual sectie report

Answer 123

To highlight and summarize key aspece appraisal that the intended user will be most interested in

Question 124

Whie following is a USPAP requirement that applies to all typitten real property Appraisal Reports?
The appraiser must perform a Cost Approach
The appraiser must use at least three comparable sales
The appraiser must clearly and accurately set forth the appraisal in a manner that will not be misleading
The appraiser must provide the report in a concise manner, using bullet points if possible

Answer 124

The appraiser must clearly and accurately set forth the appraisal in a manner that will not be misleading

Question 125

Whie following is considered to be the best tyrty wall for fire and sound protection between unithree-story apartment building?
A waterior-grade drywall
A drywall covered concrete block wall that extends just above the ceilie top floor units
A drywall covered concrete block wall that extends through and above the roof
A pressure-treated wood wall covered with fire-resistand paneling

Answer 125

A drywall covered concrete block wall that extends through and above the roof

Question 126

Whie following items would only be applicable when summarizing an apartment development?
The mits and the numbits per acre
The exterior walls and windows
The footings and foundation
The tyof and roof structure

Answer 126

The mits and the numbits per acre

Question 127

Whie following items would only be applicable when summarizing an office building?
The floor ratio efficiency factor
The tyAC
The interior wall finishes
The tyof and roof structure

Answer 127

The floor ratio efficiency factor

Question 128

Whie following items would typically only be applicable when summarizing a hotel building?
The type of HVAC
Quality of floor coverings
Skylights
Chattels

Answer 128

Chattels

Question 129

Whie following items would typically only be applicable when summarizing a mobile home park?
Tyncrete home pads
Pool and club house
Tennis courts
Central laundry

Answer 129

Tyncrete home pads

Question 130

Whie following items would typically only be applicable when summarizing a nursing home?
Kitchen
HVAC system
Central baths
Floor finishes

Answer 130

Central baths

Question 131

Which of the following items would typically ONLY be applicable when summarizing an industrial building?
Type of doors and exterior walls
Type of roof and roof structure
Dock shelters and bollards
Floor finishes and interior doors

Answer 131

Dock shelters and bollards

Question 132

Whie following may be the best opportunity for clear communication becaucombinatita interchange ?
E-mail
Telephone
Written
Face to face

Answer 132

Face to face

Question 133

Whie following should not be used by an appraiser writing a narrative Appraisal Report?
Including a glossaal estate terms
Acknowledgemeurces for quotes
The ubasic font type and size throughout
The uang or clich‚s

Answer 133

The uang or clich‚s

Question 134

Whie following statements would typically be found in an appraiser?s general or standard assumptions and limiting conditions?
The statemenct contained in this report are not true and correct
The reported analyses, opinions and conclusions were prepared by someone other than the appraiser, and as such, the appraiser assumes no responsibilty for them.
The property has been appraised as though free and clertgages, liens, servitude and encumbrances except as may be described within the appraisal report
The appraiser assumes the client has met all the requirements for USPAP compliance in engaging the appraiser.

Answer 134

The property has been appraised as though free and clertgages, liens, servitude and encumbrances except as may be described within the appraisal report

Question 135

Whie following statements would you use in your explanatie Direct Capitalization technique or method?
The appraiser converts the annual NOI into an indicatilue by multiplying the Nsingle year an overall percentage factor and then dividing the result by the numbars anticipated to be the property?s holding period
The appraiser converts the annual NOI into an indicatilue by dividing the Nsingle year by an overall percentage factor and then multiplying the result by the numbars anticipated to be the property?s holding period
The appraiser converts the annual NOI into an indicatilue by multiplying the Nsingle year by an overall percentage factor
The appraiser converts the underwritten annual NOI into an indicatilue by dividing the Nsingle year by an overall percentage factor or rate.

Answer 135

The appraiser converts the underwritten annual NOI into an indicatilue by dividing the Nsingle year by an overall percentage factor or rate.

Question 136

Whie following would be considered as good reliable sourcstorical information about a township?
National real estate publications and the New York Times
www.census.gov and www.marshallandswift.org
the township?s chambmmerce, economic development agency, township clerk and the chairme planning board
www.bloomberg.com and www.loopnet.com

Answer 136

the township?s chambmmerce, economic development agency, township clerk and the chairme planning board

Question 137

Whie following would be the MOST reliable sourpulation information?
www.marshall&swift.com
www.census.gov
www.appraisalinstitute.org
www.appraisalfoundation.com

Answer 137

www.census.gov

Question 138

Whie following would you include in either the micro or neighborhood-vicinity area descriptie location and surroundings pa Appraisal Report for an apartment building?
The accessibilirail line for shipping purposes
The availabiliocery and other retail shopping
The proximity to a sports arena
The property?s visibility from a major highway

Answer 138

The availabiliocery and other retail shopping

Question 139

Which of the following would you use to explain or define what an annual mortgage constant is?
The portion of the net operating income that is used to pay debt service and expressed as a percentage of the mortgage
A rate of return on capital, usually expressed as a compound annual percentage rate
A financial factor that is usually purchased to effectively “fix” the interest rate of a floating interest rate mortgage
A percentage rate or “factor” that is greater than the interest rate (because it includes and reflects the mortgage amortization) that is applied to the initial or current loan balance of a fixed interest rate mortgage to determine the annual debt service of a mortgage that features or requires fixed level debt service payments

Answer 139

A percentage rate or “factor” that is greater than the interest rate (because it includes and reflects the mortgage amortization) that is applied to the initial or current loan balance of a fixed interest rate mortgage to determine the annual debt service of a mortgage that features or requires fixed level debt service payments

Question 140

Whie following would you use to explain or describe the test: legally permissible?
A use that is permitted by current zoning
A use that can be obtained through litigation
A use that can be based on obtaining a variance
A non-conforming but legal use

Answer 140

A use that is permitted by current zoning

Question 141

Whie following would you use to explain or summarize the test: financially feasible?
This test includes examining items such as rents, zoning, replacement costs, roof guaranty, insurance costs and similar to show financial feasibility
This test includes examining items such as current national and local economic conditions, the capital markets, the availabrket rate mortgages and what is permissible under zoning ordinances to show financial feasibility
This test includes examining items such as market demand, rents, vacancies, operating expenses, the property?s ability to produce a positive net income, secure financing and, if necessary, securing equity funding to show financial feasibility
This test includes examining items such as they tynstruction, permitted parking, availability utilities, owner?s financial statements and similar information to show financial feasibility

Answer 141

This test includes examining items such as market demand, rents, vacancies, operating expenses, the property?s ability to produce a positive net income, secure financing and, if necessary, securing equity funding to show financial feasibility

Question 142

Whie following would you use to explain or summarize the test: maximally productive?
The ue site that qualifies for the best market rate financing
The ue site that maximizes its physical characteristics
The usite that permits the maximum amouildings per acre
The ue site that provides the greatest return to the land

Answer 142

The ue site that provides the greatest return to the land

Question 143

Whie following would you use to explain the applicabilie principbstitution to the Sales Comparison Approach?
The principle only applies to the Income and Cost Approaches and does not apply to the Sales Comparison Approach
The principle applies on the premise that a knowledgeable purchaser would not pay more to acquire a property than the coquiring a similar site and building with similar utility
The principle applies on the premise that a knowledgeable purchaser would pay more to acquire a property when the coquiring a similar site and building with similar utility is less
The principle applies on the premise that a knowledgeable purchaser would only pay more to acquire a property when the income approach justifies the price

Answer 143

The principle applies on the premise that a knowledgeable purchaser would not pay more to acquire a property than the coquiring a similar site and building with similar utility

Question 144

Whie following would you use to explain the weating tenant improvement reserve estimates in the Yield Capitalization method?
To estimate reserves in the Yield Capitalization or DCF method, year-by-year T-I cost estimates need to be made and used based on estimated lease roll over and tenant renewal or replacement
To estimate reserves in the Yield Capitalization or DCF method an appraiser estimates the effective ae improvements and divides that by the total economic life to arrive at a percentacome that is attributable to reserves
To estimate reserves in the Yield Capitalization or DCF method the appraiser relies upon the depreciated book coe building and improvements and divides that by 10 (assumes a 10 year straight line approach)
To estimate reserves in the Yield Capitalization or DCF method the appraiser uses the per square foot replacement or reproduction cost obtained from a national building cost manual and divides that by 10 (assumes a 10 year straight line approach)

Answer 144

To estimate reserves in the Yield Capitalization or DCF method, year-by-year T-I cost estimates need to be made and used based on estimated lease roll over and tenant renewal or replacement

Question 145

Whie following would you use to explain why you had to make adjustments to the comparable sales you used in the Sales Comparison Approach?
Because there are differences between the comparables used and the subject property you had to make adjustments to the dae comparable sales in order to equate the data to the subject for meaningful comparison purposes
Because the data secured is not always fully reliable you had to make adjustments to the dae comparable sales in order to equate the data to the subject for meaningful comparison purposes
Because the subject is older than ae comparables typically used by appraisers in a sales comparison approach, appraisers always need make adjustments to the dae comparable sales in order to equate the data to the subject for meaningful comparison purposes
Because no two properties are exactly alike you selected a comparable that was most like the subject but you had to make adjustments because its sale occurred many years ago

Answer 145

Because there are differences between the comparables used and the subject property you had to make adjustments to the dae comparable sales in order to equate the data to the subject for meaningful comparison purposes

Question 146

Whie following would you use to summarize that the loading doc industrial building were tailgate height?
That they are approximately 4? above grade and basically align with the floor heige average truck trailer
That they were on grade but could accommodate tractor trailer floor height loading by using a tow motor to unload the cargo
That tractor trailer trucks were able to drive into the building to unload their tailgate height cargo
That an on grade building can use a load leveler to effectively create loading that matched the heige average truck trailer

Answer 146

That they are approximately 4? above grade and basically align with the floor heige average truck trailer

Question 147

Why are employers often concerned about the availabiliblic transportation?
To see if their employees do not need to own a car so they can accept lower wages
To see if it is readily available and convenient to provide easy access to large concentratioployees
To see if the daily commuter cost is reasonable and federally subsidized
To know if the CEO can commute to work by rail as opposed to needing a driver and car

Answer 147

To see if it is readily available and convenient to provide easy access to large concentratioployees

Question 148

Why can it be important to indicate if the subject has access from a public street?
Because no property should have access via a private drive
Because access from a public street is most typical
To affirm that vehicles can access the property
Because it alerts the intended user about responsibility concerns about the cointenance and snow removal

Answer 148

Because it alerts the intended user about responsibility concerns about the cointenance and snow removal

Question 149

Why can it be important to investigate and discuss the numbilding permits issued within the past few years in a community?
It can reflect residential and/or commercial growth and trends
It can show that the township government is strong and will not permit construction without first obtaining a building permit
It can show that a significant amouvenue is generated for the township based on the numbrmits issued.
It will show what typoperties are being built

Answer 149

It can reflect residential and/or commercial growth and trends

Question 150

Why can it be meaningful to obtain and include a lie community?s largest employers in an appraisal report?
Because USPAP specifically requires a lie top 5 employers in the region be included in any written report
Because the names and typmpanies and industries create an impression about employment stability and desirability.
Because the intended user may want to copy the appraisal report and send it to these entities
Because the intended user may already kneir potential existence and your inclusion will confirm that information

Answer 150

Because the names and typmpanies and industries create an impression about employment stability and desirability.

Question 151

Why can it be significant to summarize the site density (i.e. numbits per acr apartment development?
To demonstrate mathematical competency
Because it will be the single most important factor the intended user will want to know
Because it is customary business practice to include it when appraising an apartment development
Because it connotes open space and development quality

Answer 151

Because it connotes open space and development quality

Question 152

Why can summarizing the loading docks and their appointmen industrial or flex building be critical?
Because the description will convey a sene building?s quality to the intended user
Because it will help the appraiser to estimate the price per square foot in the Marshall & Swift manual for cost approach purposes
Because the loading docks and the exterior area around them are typically included in the square footae building
Because the appointments are usually impacted by the property?s local climate

Answer 152

Because the description will convey a sene building?s quality to the intended user

Question 153

Why can the existenylights sometimes be summarized as a benefit?
Because roofs without skylights are more prone to leaking
Because they can reduce the coghting during daylight hours and if they open can be a sourntilation
Because they can reduce the amouinwater runoff on a roof
Because they enhance the exterior appearanroof

Answer 153

Because they can reduce the coghting during daylight hours and if they open can be a sourntilation

Question 154

Why is it generally not important to discuss the public school system (unless it is something unique) in a location and surroundings secticommercial Appraisal Report?
Because every community has one
Because it does not affect the subject property?s value
Because it would consume too much time to research it thoroughly
Because discussing the school system is considered a discriminatory practice

Answer 154

Because every community has one

Question 155

Why is it good to summarize any improvements made in the last three years, and their costs, when summarizing an existing building?
To show that you were serious about including a lot of information in your appraisal report
Because it conveys both a sence of the current condition of the building and the level of care and maintenance by the owner.
Because the appraiser can use those costs to estimate future improvement costs
Because the appraiser can use that knowledge to make a recommendation about the building?s management

Answer 155

Because it conveys both a sense of the current conditie building and the level of care and maintenance by the owner.

Question 156

Why is it important to identify airports and their proximity to the subject or community?
Because as the country continues to grow more airports or increases to smaller airports should occur
Because convenient access is important to business for shipping and commercial purposes and to residents for business and recreational travel purposes
Because it allows residents to commute to other countries daily in order to find work
Because when they are located on an interchanmajor interstate they are very accessible to residents

Answer 156

Because convenient access is important to business for shipping and commercial purposes and to residents for business and recreational travel purposes

Question 157

Why is it important to summarize the party walls in a building?
To explain if there is any deferred maintenance
Because it is paoviding a reasonably thorough descriptie property?s construction details.
Because it is an important fire and sound/noise concern.
Because pae appraiser’s responsibility is to determine code compliance

Answer 157

Because it is an important fire and sound/noise concern.

Question 158

Why is it important to write about and explain trends in an Appraisal Report?
Because trends affect the thinking and prognosis about the current and long term value of the subject property.
Because the appraisal is a guarantee of value for 120 days into the future
Because analysis of past events is a guarantee of what will happen in the future
Trends are not important; the client only wants to know what is currently in existence

Answer 158

Because trends affect the thinking and prognosis about the current and long term value of the subject property.

Question 159

Why is it important to write about if the property has been sold within the past three years?
To help in filing a criminal complaint against the owner for illegal property flipping or mortgage fraud
Because it is required by USPAP and if such sales, listings or agreement exists or existed they could impact the opinilue.
Because providing a written explanation is more professional than just stating ?none?
It is not important; this information is rarely necessary in a real property appraisal report

Answer 159

Because it is required by USPAP and if such sales, listings or agreement exists or existed they could impact the opinilue.

Question 160

Why is it meaningful to show a county?s population for more than just the current time period?
To show that you have researched the county?s or state?s database for population statistics
To provide an accurate estimae potential future population 10 years from now
So that the client can see population trends dating back at least 100 years
To form opinions about county population growth and trends

Answer 160

To form opinions about county population growth and trends

Question 161

Why should an office building?s efficiency ratio be summarized?
To demonstrate your mathematical competency
To provide the intended user with a feeling about the efficient (or inefficient) layoe building?s interior space.
To provide that information to national and local office building information survey companies
To provide the leasing agent with a floor factor that they can use to negotiate rents.

Answer 161

To provide the leasing agent with a floor factor that they can use to negotiate rents.

Question 162

Why should an office building?s efficiency ratio be summarized?
To demonstrate your mathematical competency
To provide the intended user with a feeling about the efficient (or inefficient) layout of the building?s interior space.
To provide that information to national and local office building information survey companies
To provide the leasing agent with a floor factor that they can use to negotiate rents.

Answer 162

To provide the intended user with a feeling about the efficient (or inefficient) layout of the building?s interior space.

Question 163

Why should you consider the acommunity?s population when writing a location and surroundings section and analyzing trends?
Age does not really need to be considered
It can be interpreted for purpostimating a population?s formal education level
It can be appropriate when a community has an atypical lev age group as it can atypically impact certain business and real estate uses such as retail and/or medical facilities.
It can be helpful when forecasting residential real estate values

Answer 163

It can be appropriate when a community has an atypical lev age group as it can atypically impact certain business and real estate uses such as retail and/or medical facilities.

Question 164

Why should you describe the existeny casinos or proposed casinos and/or casino resorts or convention centers?
Because the numbsinos and convention centers in the country continues to grow.
Because where they exist they often contribute taxes to the local economy
Because they can be used to rejuvenate a blighted area
Because while they can be considered as a recreational facility they are usually also major sourcployment

Answer 164

Because while they can be considered as a recreational facility they are usually also major sourcployment

Question 165

Why should you describe the locatiy professional sports teams, if they exist?
Because football and baseball aterest to many Americans
Because many residents and employers identify with them and they are sourcide, employment and other stimulus.
Because professional soccer is on the upswing and such a team would suggest growth
Because the coilding a new stadium may be on the ballot and could impact the local tax rate

Answer 165

Because many residents and employers identify with them and they are sourcide, employment and other stimulus.

Question 166

Why should you investigate and discuss if any new major employers have or are coming into an area?
Because when such an employer comes into an area, it generally has no effect on property values but it makes your report more thorough
Because when such an employer comes into an area it usually has a beneficial impact on the community and adds employment stability.
Because when such an employer comes into an area it usually has an adverse impact on the vale subject property.
Because when such an employer comes into an area it usually creates a numbrt-time jobs.

Answer 166

Because when such an employer comes into an area it usually has a beneficial impact on the community and adds employment stability.

Question 167

Why should you investigate and discuss in the report if a major employer has departed the area?
- Because when such an employer leaves an area it is important to state that it had no impact on the community
- Because when such an employer leaves an area, it can lead to a population decline as well as decliusing values
- Because when such an employer leaves an area, it can be very beneficial to the subject property.
- Because when such an employer leaves an area it could bring about future employment diversification

Answer 167

Because when such an employer leaves an area, it can lead to a population decline as well as decliusing values

Question 168

Why should you summarize the existen-site amenities such as swimming pools and tennis courts?
Because the intended user would see them in the aerial photograph and wonder why you did not mention them
Because they exist and enhance the overall qualie site
Although they do not affect value, they are a sourability and they mean higher insurance rates and other property expenses
Because you observed and photographed them during your physical inspection

Answer 168

Because they exist and enhance the overall qualie site

Question 169

You are writing a location and surroundings section using the technique of describing the macro area, micro area and immediate vicinity in the report. Be cause mae items can be the same, as a writer, what should you be conscious of to avoid?
Ue same phrases
Ue same adjectives
Using short, crisp sentences
Being redundant

Answer 169

Being redundant

Question 170

You are writing the micro area description, and you have already addressed certain location items in your initial or macro area description. Whiese is an exampems that you would not need to address again in the micro area description unless they were located within the township?
Local roads, local shopping and local employment
Local public transportation and the local tax base
The county?s political structure
Major landmarks, national parks, monuments, mountains, major hospitals and major military installations.

Answer 170

Major landmarks, national parks, monuments, mountains, major hospitals and major military installations.

Question 171

You can always, always do a(n) _______ Approach.
Cost
Income
Sales Comparison
GRM

Answer 171

Cost

Question 172

Form 1004 is used for which property?

Answer 172

Single Family Home - Interior & Exterior Inspection

Question 173

Form 1073 is used for which property?

Answer 173

Condominum - Interior & Exterior Inspection

Question 174

Form 2055 is used for which property?

Answer 174

Single Family Home - Exterior Only Inspection

Question 175

Form 1075 is used for which property?

Answer 175

Condominum - Exterior Only Inspection

Question 176

Form 1004C is used for which property?

Answer 176

Manufactured Home - Interior & Exterior Inspection

Question 177

Form 1025 is used for which property?

Answer 177

2-4 Units - Interior & Exterior Inspection

Question 178

Form 1004D is used for which property?

Answer 178

Appraisal Update or Completion - Interior & Exterior, Exterior Inspection

Question 179

Form 1007 is used for which property?

Answer 179

Single-Family Rent Schedule - Interior & Exterior, Exterior, None Inspection

Question 180

Which form is use for Single Family Home - Interior & Exterior Inspection

Answer 180

1004

Question 181

Which form is used for Condominum - Interior & Exterior Inspection

Answer 181

1073

Question 182

Which form is use for Single Family Home - Exterior Only Inspection

Answer 182

2055

Question 183

Which form is use for Condominum - Exterior Only Inspection

Answer 183

1075

Question 184

Which form is use for Manufactured Home - Interior & Exterior Inspection

Answer 184

1004C

Question 185

Which form is use for 2-4 Units - Interior & Exterior Inspection

Answer 185

1025

Question 186

Which form is use for Appraisal Update or Completion - Interior & Exterior, Exterior Inspection

Answer 186

1004D

Question 187

Which form is used for Single-Family Rent Schedule - Interior & Exterior, Exterior, None Inspection

Answer 187

1007

Question 190

Exposure vs marketing time

Which one is required, if using FIRREA definition of value?

Answer 190

Exposure time

Question 191

Exposure vs marketing time

Which one is required by USPAP?

Answer 191

Exposure

Question 192

————- is the appraiser’s opinion of the amount of time the property would have been on the market before the effective date.

Answer 192

Exposure Time

Question 193

————— looks out into the future; it answers the question “If this property were put on the market today, how long would it take to sell it?”

Answer 193

Marketing time

Question 194

Which two dates must be stated in every written real property appraisal report?

Answer 194

effective date of the appraisal, and the date of the report.