Unit 16 Practice Exam

Which is NOT a requirement for appraisals used in a federally-related transaction?

The Ethics Rule of the USPAP does NOT allow appraisers to

An owner wants a broker to appraise her property. The broker may

Which is NOT one of the essential factors for a property to have value?

The normal rate of return for a certain type of property is 12%. A particular investor will buy only if that type property yields 14%. The property value to that investor is called its

“The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus” is the definition of

The upper limit of a property’s value is set by

The highest and best use of a parcel of land is

A buyer of a convenience store had an appraisal made that showed value of $400,000. Later, the buyer made an addition to the store that cost $225,000. A new appraisal came in at $600,000. This is an example of

The subject house has 1,600 square feet of living area; the comparable sale has 1,750 square feet, and sold for $345,600. An appraiser has estimated the difference should have an adjustment of $212 per square foot. The value of the subject property based on the comparable sale approach would be approximately

An appraiser has estimated that the costs per square foot to build a house of average size in an area are as follows: Living space- $212; garage- $118, porch- $102. The subject house has 2,050 square feet interior, 480 square foot garage, and a covered porch of 240 square feet. What is the estimated reproduction cost of the house?

A house is 12 years old and an appraiser estimates it has a 40-year life. If its reproduction cost is $430,000, what is the accrued depreciation of this house?

A property has 80 units. Each of them rent for $15,000 annually. The vacancy rate is 7%. Operating expenses are 45% of effective gross income. What is the net operating income of this property?

A 2-year-old single-story, 2,300 square foot ranch house in Happy Valley was being appraised. The best  comparable sale to use would be

When making a comparative market analysis, the best estimate of appraisal value will be by reviewing houses that