NAME

Question types


Start with


Question limit

of 180 available terms

Print test

180 True/False questions

  1. A roof that inclines from four sides is a:hip roof

          

  2. What approach to value tends to set the upper limit to value?Reproduction cost

          

  3. The age of a single family residence could best be determined by the:outside dimensions of a house.

          

  4. Of the following, which is the closest to highest and best use?Sinking fund

          

  5. If a house were built in 1948 and appraised in 1993, it:had a physical life of 45 years.

          

  6. A bare lot would most likely be appraised using which of the following principles?topography.

          

  7. Of the following, which one is not a cause of depreciation?Greatest net income

          

  8. The square footage in a home is usually determined by:changes in the local economy that affect the subject property's value.

          

  9. What would be the most accurate way of telling the age of a single family residence?Check the tax assessor's records

          

  10. When a building earns sufficient income to justify its continued operation, this is called:unearned increment.

          

  11. If you fix up a building which you own, without changing the interior or exterior design, this would be an example of:rehabilitation.

          

  12. A couple is looking at houses and turns one down because they felt the price of the home was too high. This is based on what principle of real estate?Sinking fund

          

  13. Effective age:value increases due to population increase.

          

  14. In the appraisal process the first step is to:worth

          

  15. Demand is a very important element of value. In order for demand to be effective, it must be implemented by:availability of interested buyers.

          

  16. A usual definition of "highest and best use" includes the words:water

          

  17. To obtain the most accurate report of the actual gross income of an apartment, an appraiser should:obtain a statement from each tenant as to the amount of rent he pays.

          

  18. Which of the following types of value would be approximately the same as market value?Speculative value

          

  19. An appraiser's primary concern when analyzing real property is:appreciation.

          

  20. Which of the following statements is correct concerning the income approach?all of the above, It is the quickest and easiest method, It is the simplest method and easiest for a beginner to learn, It is often used to appraise unimproved land

          

  21. A property located at 147 James Street, Any City, Your State, which is near the corner of Broadway and 3rd Avenue and measures 140' x 200', is:a physical description.

          

  22. Depreciation is defined as a loss of value due to any cause. It is also classified as curable and incurable. Of the following statements concerning depreciation, which one is correct?all of the above, Relationship of desirous persons and things desired, Ability of one commodity to command other commodities, Present worth of future benefits arising out of ownership of property

          

  23. In the cost approach to appraisal, the phrase "reproduction cost" is different from "replacement cost" in that "replacement cost" measures the:Recapture of initial investment

          

  24. In the appraising process, the term "highest and best use" often comes into play. This can best be defined as:net income

          

  25. How are the improvements and the land valued when using the cost approach?Separately by more than one approach

          

  26. Which of the following formulas would establish the value of income property?I divided by R = V

          

  27. Economic obsolescence is best described as:changes in the local economy that affect the subject property's value.

          

  28. When a person acquires certain assets, he must determine the salvage value of those assets. Before calculating his future depreciation on these assets, the salvage value would:Reproduction

          

  29. The square footage of a single family residence for appraisal purposes is computed by obtaining the:County Assessor's records.

          

  30. Which of the following appraisal approaches would tend to set the upper limits of value?Economic obsolescence

          

  31. Accrued depreciation is a term used in the real estate appraisal field. Which of the following methods would accrued depreciation have its greatest effect on?Cost approach

          

  32. In analyzing a vacant parcel of land to estimate its value, the first logical step is to determine:highest and best use.

          

  33. Of the following, which one would be the least important feature in establishing the value for industrial acreage?Fertility

          

  34. Broker Jones appraised two similar commercial properties. Both were leased on a long term basis. One was a hardware store and the other was a post office. Compared to the hardware store, the capitalization rate on the post office was:lower.

          

  35. To appraise an amenity an appraiser would probably use the:market comparison.

          

  36. Functional obsolescence:may be expressed as a monthly or annual gross multiplier.

          

  37. Insofar as the ratio of improvements to land, which would most likely give the greatest depreciation?highest and best use.

          

  38. The upper limits of value are determined by which approach?40 years.

          

  39. A lesser-valued property will be worth more because of the presence of a greater-valued property nearby. This is known as the principle of:regression.

          

  40. The reproduction cost method:value increases due to population increase.

          

  41. There are four essential elements of value. Which of the following is not an essential element?Cost

          

  42. When do real estate values decline?both, causes a more rapid decline in value than physical deterioration., can be caused by changes in style and design.

          

  43. Appraisers speak of "the highest and best use." Of the following, which is related to this expression?net income

          

  44. Relating to the appraisal field, the stages of "development and old age" and "progression and regression" are parts of what concept?all of the above, the higher the risk, the higher the rate., the higher the rate, the lower the value., the lower the rate, the higher the value.

          

  45. In which of the following is the appraiser estimating the value of the land by considering it as fully developed to its highest and best use, then deducting the cost of development?Cost

          

  46. A specific purpose property is appraised using which appraisal approach?define or state the problem.

          

  47. The age of a house can be determined most accurately by inspecting the:tax assessor's records.

          

  48. The economic life of an average frame building is:40 years.

          

  49. The income method would be used when appraising:all of the above, is used in the appraisal of single family residences., is the price the property will bring on the open market., involves a willing buyer and willing seller.

          

  50. Referring to the capitalization rate used in the income method:define the problem, second is to reconcile, and the final step is to set the opinion of value.

          

  51. Appraisers using the observed condition method to appraise a property would consider all except:define or state the problem.

          

  52. A professional appraiser, in arriving at the value of an income producing property, may use:all of the above, property residual technique., capitalization of net income., land residual technique.

          

  53. Which of the following is not a "non-property characteristic" used by an appraiser?all of the above, It sets the upper limit of value, Little difficulty is encountered in estimating the replacement cost of "new" structures, Serious difficulties often arise in obtaining an accurate computation of accrued depreciation

          

  54. The market value of a 15-year old residence is most commonly determined by:outside dimensions of a house.

          

  55. Which of the following is an appraisal approach?all of the above, Market data, Cost, Income

          

  56. When two properties are identical or highly-similar most buyers focus on lower price. This principle is called.Substitution

          

  57. If you were asked to appraise an industrial piece of property, which of the following would be most important to you?Cost

          

  58. Under real estate law an appraisal would be required:in the sale of subdivided land located out-of-state being offered for sale in the State of California.

          

  59. Two appraisers, one using a capitalization rate of 11% and the other one 10%, both agree that the net income of a building was $9,020. The higher capitalization rate made the price of the building:market comparison.

          

  60. "Depth tables" are used by appraisers when appraising:commercial property.

          

  61. Another name for a cul-de-sac is:utility, scarcity, demand, and transferability.

          

  62. The word value, as used in appraising real property, is most nearly comparable to:worth

          

  63. Economic obsolescence is said to be extraneous, caused by environmental or economic changes. Of the following, which is a correct statement concerning economic obsolescence?Value loss due to proximity to a major highway causing noise and traffic hazards will create economic obsolescence

          

  64. Which of the following types of depreciation would be most difficult to cure?Economic obsolescence

          

  65. An example of economic obsolescence is:both, causes a more rapid decline in value than physical deterioration., can be caused by changes in style and design.

          

  66. The word "potable" refers to:appraisers.

          

  67. When calculating value using a capitalization rate, which item is not deductible in calculating net income?economic life.

          

  68. Most appraisers use the _____________ when appraising a new building.cost approach

          

  69. In the cost approach to appraisal, the phrase reproduction cost is different from replacement cost in that replacement cost measures:the present cost using utility.

          

  70. The concept of fair market value:all of the above, is used in the appraisal of single family residences., is the price the property will bring on the open market., involves a willing buyer and willing seller.

          

  71. Unearned increment means:requires a separate appraisal of the land.

          

  72. When appraising income producing properties, the appraiser is concerned with the effective gross income. Which of the following with respect to effective gross income, is the appraiser concerned with?Vacancy

          

  73. To arrive at the valuation of an amenity type property, an appraiser would use:market data approach.

          

  74. Demand being equal:prices increase as availability decreases.

          

  75. What appraisal approach would be used on a residential duplex for fire insurance purposes?effective age

          

  76. What is the definition of value to an appraiser?all of the above, Relationship of desirous persons and things desired, Ability of one commodity to command other commodities, Present worth of future benefits arising out of ownership of property

          

  77. The amount of money left over after an owner of an income producing property has paid all of his expenses, including principal and interest payments, is called:regression.

          

  78. In the appraisal field of real estate, there are many ways an appraiser can arrive at a capitalization rate. Which of the following could be used to determine a capitalization rate?The band of investment theory

          

  79. Unearned increment most nearly means:use value

          

  80. If two nearby homes cost the same to build, but one is worth considerably less than the other, the cause would be:functional obsolescence.

          

  81. Depreciation, as used in the cost approach to appraisal, may be defined as:closely aligned pillars inside of a store.

          

  82. In making a real estate appraisal, the opinion of value typically is based on the:define the problem, second is to reconcile, and the final step is to set the opinion of value.

          

  83. A multi-storied apartment building that contains no elevator is called:deferred maintenance.

          

  84. The period of time when an income producing property generates income in excess of its expenses is known as:economic life.

          

  85. A nice yard, beautiful trees, and good neighbors usually increase the value of residential property. These things are known as:outside dimensions of a house.

          

  86. The real estate appraisal field is a very complex and detailed area. When developing an appraisal to determine an opinion of value, which of the following dates would be of most importance to an appraiser?The date the appraiser inspects the physical improvements

          

  87. A real estate appraiser will determine the capitalization rate by:any of the above, band of investment., summation., market comparison.

          

  88. An appraisal method used to establish land value whereby the appraiser attributes part of the property's value to the land and part to the building is called:Separately by more than one approach

          

  89. When an appraiser adjusts the income of an apartment property for vacancies and loss of rent, the resulting figure is:effective gross income.

          

  90. An appraisal has been requested for a residential home. The home is actually 10 years old but because it has been exceptionally cared for, the appraiser places its age at 6 years. This would be known as:effective age

          

  91. A good example of the most incurable functional obsolescence is:closely aligned pillars inside of a store.

          

  92. When an appraiser raises the capitalization rate on income property, he must realize that he implies a:effective gross income.

          

  93. Utility value is best described as:use value

          

  94. The price a property would bring if freely offered on the open market, with both a willing buyer and a willing seller is:the subject property is inspected by the appraiser.

          

  95. Which of the following is not classified as obsolescence?Worn out roof

          

  96. The term "functional utility" most nearly means the:utility, scarcity, demand, and transferability.

          

  97. Negligent care of a building is called:prices increase as availability decreases.

          

  98. In the appraisal of residential structures, the cost approach is best suited to:new properties.

          

  99. You would most likely find the best kept homes in a neighborhood where:changes in the local economy that affect the subject property's value.

          

  100. In the appraisal of real property, using the capitalization approach, the overall capitalization rate applicable to the income in interpreting value would take into consideration which of the following?all of the above, Durability of income, Quality of income, Quantity of income

          

  101. Of the following, which is a correct statement concerning the comparison method?all of the above, It is the quickest and easiest method, It is the simplest method and easiest for a beginner to learn, It is often used to appraise unimproved land

          

  102. Value is created, maintained, modified, and destroyed by all of the following except:appreciation.

          

  103. The period of time in which an income property produces enough income to maintain itself and show a profit is known as its:shorter than its physical life.

          

  104. In one word, the contour of the surface of the land is called:all of the above, is used in the appraisal of single family residences., is the price the property will bring on the open market., involves a willing buyer and willing seller.

          

  105. A licensee must make an adjustment between the comparable and the subject property because:two properties are rarely similar concerning everything.

          

  106. The building residual technique of appraising is directly related to the:cost approach.

          

  107. A real estate appraisal made by an MAI is an estimate of value based upon:define the problem, second is to reconcile, and the final step is to set the opinion of value.

          

  108. Which principle of valuation says that value is set by the cost of getting an equally desirable substitute?Development method

          

  109. When the appraiser is concerned with depreciation in his appraisal report, the method he would use would be:define the problem, second is to reconcile, and the final step is to set the opinion of value.

          

  110. What would happen to the value of a commercial property whose depth is extended beyond that of neighboring lots?lower

          

  111. An increase in value of real property is known as:based on capitalization of net income.

          

  112. The income capitalization approach includes the "return of" and "return on" the investment. What does "return of" mean?desirability and usefulness of the property are such that it would be easily marketable at the asked price.

          

  113. Which of the following is not one of the four elements of the value of real property?I divided by R = V

          

  114. Of the following, which is a correct statement concerning the cost method of appraisal?Greatest net income

          

  115. Value is set by the cost of getting an equally desirable substitute. This is a simple explanation of the principle of:substitution.

          

  116. When would the cost approach to appraisal be most appropriately used?New property

          

  117. The relationship between "the thing desired and the potential purchaser" is best defined as:all of the above, the higher the risk, the higher the rate., the higher the rate, the lower the value., the lower the rate, the higher the value.

          

  118. Relating to the appraisal field, growth, decline, progression, and regression are parts of what concept?Change

          

  119. A gross multiplier is least likely to be used in the appraisal of:vacant land.

          

  120. In the field of real estate, the terms "quantity survey," "unit-cost in place," and "square foot" apply to:A mental hospital built in a new up-scale neighborhood

          

  121. In appraising an unimproved lot, one would logically first determine:define the problem, second is to reconcile, and the final step is to set the opinion of value.

          

  122. An appraiser is reconstructing the operating statement for a small commercial property. Which expense is often overlooked by the owner, but is included by the appraiser on the reconstructed operating statement?marketability and acceptability.

          

  123. A residential property that is 15 years old has an average projected physical life of 40 years. This particular property has been superbly maintained and appears as if it were just 5 years old. This represents the concept of:vacant land.

          

  124. The value of the best property in a neighborhood is adversely affected by a substandard property nearby. This can be described as the principle of:outside dimensions of a house.

          

  125. The quantity survey method, square foot method, and unit-cost-in-place method, are terms most directly related to real estate:requires a separate appraisal of the land.

          

  126. "Depth tables" are used by:appraisers.

          

  127. Mr. Loveless built a quality custom home in an area where the surrounding homes were valued at $120,000. His home cost $350,000 to construct. He will suffer a loss of value due to:40 years.

          

  128. In the case of residential properties, there is an increase in the demand for lots with:unearned increment.

          

  129. When the owner of a commercial property lists it for the purpose of selling, which cost is most often overlooked?wider frontage.

          

  130. 4 - 3 - 2 - 1 is a familiar term used in a general real estate practice. This refers to:appraising vacant land where the lots vary in depth.

          

  131. A gross multiplier:may be expressed as a monthly or annual gross multiplier.

          

  132. The appraisal approach using income from property as a basis for determining its value would be concerned with which of the following characteristics of the income?all of the above, Quantity, Durability, Quality

          

  133. Which of the following types of depreciation would be most difficult to calculate accurately?Economic obsolescence

          

  134. An appraiser's opinion of value of a property may be lowered by nearby nuisances. When this occurs, it is known as:economic obsolescence.

          

  135. Economic obsolescence is generally considered:incurable.

          

  136. An appraiser will seriously consider all of the following in arriving at an opinion of value, except:the subject property is inspected by the appraiser.

          

  137. Economic obsolescence is said to be extraneous, caused by environmental or economic changes. Of the following, which is a correct statement concerning economic obsolescence?Value loss due to proximity to a major highway causing noise and traffic hazards will create economic obsolescence.

          

  138. The value of income property is usually:all of the above, is used in the appraisal of single family residences., is the price the property will bring on the open market., involves a willing buyer and willing seller.

          

  139. One of the main reasons that condominium projects are to grow in demand in the future is:Economic obsolescence

          

  140. When two or more contiguous parcels owned by one person have an increased value, above the value of the individual lots, this is called:Reproduction cost

          

  141. Broker Jones appraised two similar commercial properties. Both were leased on a long term basis. One was a hardware store and the other was a post office. Compared to the hardware store, the capitalization rate on the post office was:lower

          

  142. The fastest and most accurate method of appraising a library would be:define or state the problem.

          

  143. According to appraisal theory, which is the most desirable corner for a retail business?Greatest net income

          

  144. The most important factor listed below, in determining the value of a home, is:shorter than its physical life.

          

  145. The economic life of an income property is:dead-end street.

          

  146. The prime factors of value are:utility, scarcity, demand, and transferability.

          

  147. The most important factor that would influence the value of a home is:demand by qualified buyers.

          

  148. Which of the following would be the most important factor in determining the value of a single family residence?Location and neighborhood

          

  149. Of the following, which is a correct statement concerning the income method of appraisal?all of the above, It requires the determination of net income before interest and amortization, but after deduction of operating expenses, An appropriate capitalization rate must be determined, It is not applicable to owner-occupied homes because benefits of amenities are difficult to measure in terms of dollars

          

  150. "Depreciation," as used in the cost approach to appraisal, may be defined as:New property

          

  151. What a leased property would be expected to rent for under current market conditions if the property were vacant and available for rent is:fair market value.

          

  152. Which of the following is a correct statement concerning the cost method?all of the above, It requires the determination of net income before interest and amortization, but after deduction of operating expenses, An appropriate capitalization rate must be determined, It is not applicable to owner-occupied homes because benefits of amenities are difficult to measure in terms of dollars

          

  153. The income remaining after cost of labor and management have been paid is called:all of the above, a shopping center., a medical building under long term lease., a hotel.

          

  154. An appraiser, in determining the value of real property, would give consideration to which of the following?all of the above, The desire of a person for the desired thing, The relationship of the value of the property in exchange for other property, Effective demand, as evidenced by purchasing power, and relative scarcity

          

  155. Under the principle of substitution, one assumes that one property may be substituted for another in terms of:based on capitalization of net income.

          

  156. Regarding past and future depreciation it is true that the:deferred maintenance.

          

  157. Which of the following is an example of economic obsolescence?Worn out roof

          

  158. Which of the following would cause a home to be considered substandard?Leaking roof

          

  159. Which of the following types of depreciation would be the most difficult to estimate?Economic obsolescence

          

  160. Trend is defined by appraisers as a process of change:created by a chain of cause and effect.

          

  161. When the value of real property increased because of an increase in population, this could be classified as:wider frontage.

          

  162. There are three main causes of depreciation. Which of the following finds its origin in the term, "social forces," which is the basis for the old axiom that, "more houses are torn down than fall down?"40 years.

          

  163. What contributes most to the maintenance of value in a well-planned community?cost approach.

          

  164. When appraising a property for a lender in connection with financing the purchase of a residential property, an appraiser determines an estimate of value based upon the date that:the subject property is inspected by the appraiser.

          

  165. Which method of appraisal would a licensee use to appraise a restaurant?Income approach

          

  166. The difference between the way an appraiser looks at depreciation and the way an accountant looks at depreciation is:Sinking fund

          

  167. In the situation where no prudent person would pay more for a piece of land than others, which of the following principles would be best applied?Substitution

          

  168. Which of the following would be most beneficial in preventing economic obsolescence on income property?Worn out roof

          

  169. All of the following are considered forces of value. Which is least important in its effect on value?Cost approach

          

  170. Present worth and future benefits of property are concerned with:straight-line method of depreciation may be used to measure past or future depreciation.

          

  171. If you were asked to appraise a piece of property with a worthless building on it, in order to arrive at the value of the lot and determine its highest and best use, you would:appraised value.

          

  172. The closest meaning to value is:utility, scarcity, demand, and transferability.

          

  173. In the definition of highest and best use, one would likely find the phrase:net return

          

  174. Which of the following appraisal methods would require the appraiser to determine a separate value of the land?Cost approach

          

  175. Ms. Smith built a house with four bedrooms and one bath. When work was completed, the property had depreciated immediately from what cause?Functional obsolescence

          

  176. Sometimes, a real estate appraiser uses a gross rent multiplier to determine property value. An appraiser can determine the gross rent multiplier by:effective date of the appraisal.

          

  177. On appraising a residential property, which of the following would have the least effect on the appraiser's estimate?highest and best use.

          

  178. How would the replacement cost of a warehouse be determined?Cost per cubic foot

          

  179. The first step in the appraisal process is:define or state the problem.

          

  180. Most appraisers use the _____________ when appraising a new building:cost approach