The CE Shop Appraisal Practice Exam

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• What resource was developed to improve the quality and consistency of appraisal data for loans delivered to Fannie Mae and Freddie Mac?
• When analyzing data for the square footage of single-family homes, Bridget uses a ______ to provide a single number that represents all of the houses in the sample.
• Can police power ever be used in a way that restricts citizens' freedom?
• Where is aluminum wiring used in construction today?
• Which is a common way appraisers reconcile values from the three approaches?
• Which roof style features a shallow slope over a steep slope, and is typically seen in barns?
• When prices go down because there are too many homes on the market and too few buyers, what economic principle is at work?
• What method can be used to analyze market data for similar properties?
• Which of the following is considered a general factor that influences the value of real estate?
• In the income capitalization approach to appraisal, how is NOI (Net Operating Income) calculated?
• What is typically the first step an appraiser takes when approaching a new property valuation?
• What is a common purpose of a home appraisal?
• What method is used to value individual parcels of land after a large tract has been purchased and prepared for development?
• Which of the following statements is true about a lender-enabled appraisal waiver?
• Why might an appraiser choose to utilize gross income multiplier instead of gross rent multiplier for valuing an income property?
• From whom would an appraiser typically gather general data?
• An appraiser reviews the expenses from an income property. What is the method of accounting called where expenses are recorded when paid and income when received?
• Which entity is responsible for ensuring that real estate appraisals are conducted by qualified appraisers who follow USPAP?
• What is the best tool to present demographic information by age to clients unfamiliar with the area?
• What does the lot and block system use to develop a property's legal description?
• What is a drawback of applying the cost approach to valuing residential property?
• What is the primary purpose of a property appraisal?
• If an application to a cooperative is rejected, what is the board's obligation?
• According to the process appraisers follow, what action is taken first upon being assigned a property for appraisal?
• Yield capitalization estimates future income and then applies a ______ to provide an investment's present value.
• Which feature allows about five times more daylight into a room compared to a similarly sized window?
• In a rectangular survey system map, where is Section 36 typically located?
• How long must an appraiser retain the work file and the report after completing an appraisal for a new client?
• When estimating market rent for commercial properties, appraisers compare rents across the subject and comparable properties by doing what?
• What legal term describes a situation in which a government action reduces the value of private property?
• In the rectangular survey system, what is a section?
• What legal claim have the Johnsons made against the town for stripping their liquor license?
• Which type of cost, included in the quantity survey method, refers to expenses like permits and surveys?
• Which of the following methods is most commonly used to estimate the value of residential properties?
• Which type of framing involves a single system of wall studs run from the foundation through the first and second floors to the ceiling support?
• How does an appraiser typically determine the site value using the cost approach method?
• What role does zoning play in determining property value?
• Which valuation technique is used when the land value is known, but the building value is unknown?
• The capitalization process uses a rate based on what factor?
• Which legal description method is regulated by the U.S. Department of the Interior's Bureau of Land Management?
• What tool can an appraiser use to validate operating expenses and net income by comparison with similar properties?
• Using the index method to estimate reproduction cost, what is multiplied by the index factor?
• When appraising manufactured homes, it's recommended that appraisers look for the HUD label and ensure that a manufactured home meets ______ size requirements.
• At what point during ownership may a property owner place a restriction on a deed?
• Which approach focuses on the cost to reproduce a similar structure in estimating value?
• What does the acronym "HVAC" stand for?
• If the exterior walls of a property are rated "C4" and the roof is rated "C2," what can be concluded?
• What is another name for the profit made from an investment, expressed as an interest rate or discount rate?
• Which value definition relates to the highest price a buyer is willing to pay in the current market?
• In which field of the sales comparison grid would you find an indication of an arm's length sale?
• Which characteristic is not applicable to joint tenancy ownership?
• Which method is often used by appraisers as a checking mechanism for estimated construction costs?
• What type of appraisal report uses pre-printed documents?
• What is a common factor to consider when using the subdivision development method for parcel valuation?
• A property's value is dropping because the neighboring property's yard is filled with trash. What's this an example of?
• In which process are appraisers likely to analyze the impact of defects on rental values?
• What is meant by “curable depreciation” in property appraisal?
• When appraising a newer building, which method is likely to be used for calculating construction cost using similar structures?
• Which method of measurement does an appraiser typically use to evaluate the components of building costs?
• Which of the following best describes the term 'depreciation' as used in property valuation?
• For which party is an expense stop clause in a lease advantageous?
• What is the right called when a landowner can draw water from a well located on their property?
• When can property be declared to have functional obsolescence?
• Where is a thorough identification of the property found in the narrative appraisal report?
• Which of the following is classified as a framing member in construction?
• In which type of ownership does one co-owner have the right to transfer their interest?
• In an appraisal using three comparables, which factor is likely to weigh most heavily?
• What is the total square footage of a first floor measuring 10x15 feet for the kitchen, 20x25 feet for the living/dining area, and 10x10 feet for the office and bedroom?
• What is the term for the allowable deductions in property value due to economic factors?
• By what other name is the market comparison method of measuring depreciation known?
• Luke recently moved from a condominium to a cooperative. With a cooperative, his share of mortgage interest and real estate taxes will be ______.
• According to national standards, how can a homeowner include garage space in their total square footage?
• What does the formula NOI ÷ V = R calculate?
• Which line item in the Cost Approach section captures the appraiser's opinion of value for the property?
• Which method involves comparing similar properties that have recently sold to estimate value?
• To determine the total reproduction cost new of a subject building using the quantity survey method, what must the appraiser add to the sum total of the direct costs?
• What type of piping is durable, corrosion-resistant, but has a shorter lifespan than copper?
• How is the grid used in the rectangular survey system laid out?
• Compared to condominiums, how do the monthly fees for cooperative owners generally compare?
• What type of legal description uses specific measurements and directions?
• What approach to appraisal is recommended for a manufactured home that hasn't been placed on a foundation?
• Which of these transactions must comply with Appraiser Independence Requirements?
• Which of the following is a true statement regarding adjustments in the sales comparison approach?
• Which type of depreciation is nearly always considered incurable?
• In appraising a site located in an earthquake zone, what is this considered?
• Which type of legal description do courts prefer?
• Which statement is true regarding police power and public land use controls?
• What is the purpose of the Appraiser Independence Requirements?
• Which method might a builder employ to hide unattractive areas and enhance sound control?
• What term refers to the government's power to take private land for public use?
• What is the front footage of a property that measures 500 feet by 800 feet?
• Whether an appraiser is appraising a condo, a co-op, a time share, or a unit in a PUD, which of the following must always be considered?
• What determines the effective date of an appraisal?
• Which of the following best describes an appraisal?
• Which one of the following is a true statement about radon?
• In the Improvements section of the Uniform Residential Appraisal Report form, what rating is defined as "Improvements have substantial damage or deferred maintenance with deficiencies or defects that are severe enough to affect the safety, soundness, or structural integrity"?
• What is the best definition of real property?
• What does the term "deferred maintenance" imply in property appraisal?
• How is the gross rent multiplier (GRM) calculated?
• To determine the estimated reproduction cost of a subject building using the square-foot method, the appraiser takes the ______ and multiplies it by the cost per square foot of a recently constructed comparable structure.
• The state's claim to property when a property owner dies, leaving no will, heirs, or creditors, is known as what?
• Where can you typically find landscaping plans for a home?
• This equation, "Value of land = Anticipated sales of finished lots - development costs," is a simplified version of one used with which method of land valuation?
• Which method is typically not used for determining land value in appraisals?
• Which section in a narrative appraisal report summarises the conclusions drawn by the appraiser?
• What are building specifications?
• Which of the four methods used to find the reproduction cost of a structure is most often used by appraisers?
• Which type of Real Estate Investment Trust (REIT) generates income by using short-term debt to acquire longer-term mortgage securities?
• Which system is responsible for pulling stale air out of kitchens and bathrooms?
• What is the primary goal of an appraiser when conducting a residential appraisal?
• How can an appraiser calculate the effective gross income for a commercial property with a potential gross income of $1.575 million and 15% vacancy losses?
• What type of easement is indicated if a neighbor cuts through a yard to access a neighboring park more efficiently?
• Which technique is used to determine the value of buildings when using residual income techniques?
• Maxine's lease goes up and down based on the consumer price index. Which of these provisions is included in her lease?
• Which type of loan may require compliance with Appraiser Independence Requirements?
• In the observed condition method, what does an appraiser estimate?
• Appraisers develop an estimate of market rent for residential properties by ______ and comparing rents across the subject and comparable properties.
• What is defined as the government's authority to control public land use for the health and safety of citizens?
• What is the term used for the return of principal at the end of ownership?
• What term refers to the financial return generated from an investment property?
• What is used to measure property size when employing the lot and block system?
• The intent of the Appraiser Independence Requirements (AIR) is to protect which group of stakeholders?
• Foundation walls are constructed on top of which of these items?
• When the ground rent capitalization method is used, a capitalization rate is applied to ______ in order to arrive at a value.
• What is described as something divided into a number of equal parts?
• Which of the following does an appraiser take into consideration when determining site value?
• Which of the following is a component that would typically influence an appraiser's report?
• What is typically used for marketing a property to demonstrate its attributes and advantages?
• Which of these items requires special attention from the appraiser when the subject property is a manufactured home located in a mobile home park?
• Which of the following factors does NOT influence property value according to the economic principles of valuation?
• What term describes the method where future income estimates are calculated and a discount rate is applied?
• Which style of home might appeal to someone who dislikes stairs?
• The income capitalization approach to appraisal uses ______ as the I in the capitalization formula V = I ÷ R.
• What limitation does an individual face when wanting to grow marijuana in an illegal jurisdiction despite owning property there?
• What is Rhonda measuring when trying to determine how much longer a building can be expected to remain standing?
• Which factor would not typically influence the appraisal of a home?
• What type of ownership do condominiums represent?
• Changes in demographics and population growth are examples of what type of real estate value influencer?
• Which of the following is a key consideration and starting reference for a metes and bounds description?
• The appraiser applies a capitalization rate to an income comparison of similar properties. Which method is used to measure depreciation?
• The Appraiser Qualifications Board has set a minimum of 200 hours of appraiser education for which category of qualified appraiser?
• Property owners who are inconsistent in enforcing their rights can lose them through what doctrine?
• The presence of neighborhood amenities, such as shopping and schools, influences real estate value in what manner?
• What type of ownership do Julia and Gene have if Gene wants to leave his ownership interest to his son but cannot?
• What is defined as the method through which public authorities regulate land use?
• What type of legal description is referred to when a plat of a property is recorded in a map book at the county courthouse?
• What was the starting point for creating the legal description of the Simpsons' five-acre lot?
• What rating scale do appraisers use to indicate the condition of a property?
• What tell-tale sign of a modular home should you look for during showings?
• What technique is employed when the value of a building is known, but the land value is yet to be determined?
• What is defined as a ratio that compares two quantities?
• What is the main focus of the sales comparison approach in appraisal?
• Which of the following entities has Congressional authority to develop and enforce appraisal standards and appraiser qualifications?
• An abandoned or otherwise unused commercial or industrial site that contains suspected contaminants is commonly referred to as what?
• Which appraisal approach is typically best for a movie theater?
• Sandy is analyzing the median square footage of single-family homes. What type of sample does she refer to for this data?
• What essential step does an appraiser take first in the sales comparison approach?
• When determining depreciation, which approach provides a method that accounts for market conditions and trends?
• Compared to homes built before 2004, ENERGY STAR®-qualified homes are rated how much more energy efficient?
• Extreme damage to the property's foundation, which puts the entire structure in jeopardy, is an example of which type of depreciation?
• Which of the following is part of an electrical heating system?
• If Margie needs to know the total square footage for the first floor of a condo, which dimensions would you calculate?
• Which method does an appraiser use to estimate a property's loss in value for both curable and incurable depreciation?
• Which type of development is likely to be reviewed in relation to a mixed-use zoning ordinance?
• If an appraiser gives a seller a ballpark range of value for a property, what is this considered according to USPAP?
• Which document is typically necessary for a home appraisal?
• What type of co-ownership includes the right of survivorship and cannot be sold unilaterally by one spouse?
• Which method is an appraiser using when multiplying the cost per square foot of a comparable structure by the number of square feet in the subject building?
• Which legal description corresponds to a recorded plat in a county records office?
• Where can the Universal Appraisal Dataset and the Uniform Collateral Data Portal be accessed?
• When an appraiser determines a property's potential gross income for a property, what provides information about trends that may influence market rent?
• What initial type of description did the surveyor use for the Happy Acres development?
• What rating scale is commonly used in the quality of construction field for a comparable property in the URAR sales comparison grid?
• Which type of property condition is typically examined when determining rental value differences in a capitalized value approach?
• What type of walls are constructed on top of footings?
• What does the term "highest and best use" refer to in real estate appraisal?
• Who typically uses the appraisal to determine the price to pay for the property?
• In the acronym MARIA regarding the legal tests of a fixture, what does the R stand for?
• Which ownership type can complicate the appraisal value of a property due to shared interests?
• How does an appraiser reconcile adjusted sales prices of comparable properties using the sales comparison approach?
• What would be the net operating income (NOI) for a residential income property with total expenses of $105,000 and an effective gross income of $170,000?
• What tool can an appraiser use to validate operating expenses and net income?
• Which of the following statements about a property owner placing a restriction on a deed is true?
• In which section of a narrative appraisal report would you expect to find a glossary and appraiser qualifications?
• What source of information can an appraiser use to determine the dimensions and area of a property?
• How is the estimated reproduction cost of a building determined using the index method?
• Which part of an appraisal report addresses factors that attract or repel buyers?
• What effect does a co-owner's inability to sell a property's shared interest have on its value?
• How were appraisers first regulated?
• What is the term that refers to a physical feature defining land boundaries?
• By what other name is the sales comparison method, used to measure depreciation, known?
• What rating scale do appraisers use to indicate the quality of workmanship, materials, and finish?
• If the cost to cure a problem is greater than what the cure will add in property value, how is it classified?
• In an air conditioning system, what component removes heat from the air and transfers it to the refrigerant?
• Which of these is the best definition of real estate?
• Which line item in the Cost Approach section in the URAR form is used to capture the appraiser's total cost estimate for the accrued depreciation costs?
• Which method used to find the reproduction cost of a structure requires the appraiser to know every facet of building construction?
• What do older homes typically use to prevent electrical overload and fires?
• With which method of measuring depreciation must appraisers use comparable properties with and without defects?
• What significant benefit does an ENERGY STAR®-qualified home provide compared to older homes?
• Which of the following would be considered an arm's length transaction?
• If a deed restricts land use for educational purposes, what type of interest does the school have?
• Why might a property owned by four joint tenants have a lower appraisal value than the same property owned by one individual?
• What is an essential factor that appraisers should consider when determining property value?
• LaTonya's aunt left her a bungalow on the outskirts of the city. Which real property right allows her to sell the property?
• Limited liability companies and limited liability partnerships are favorable forms of business because ______.
• To determine the estimated reproduction cost of a subject building using the index method, the appraiser multiples the index factor by which of the following?
• Which type of estate does not end automatically when a stated event or condition occurs?
• What is the name of the umbrella organization authorized by Congress to oversee real estate appraisal standards?
• In the context of property appraisals, what does a "comparable sale" refer to?