California Real Estate Valuation / Market Analysis Exam 2024 Questions and Detailed Answers for Guaranteed Pass | Graded A

In appraisal, the adjustment process, whereby, comparables are adjusted to the subject property is known as: (a) averaging. (b) reconciliation. (c) weighing. (d) comparing - The correct answer is b: In appraisal, reconcilation is the process of interpreting the data gathered by bringing the various value estimates into mutual relationship with one another to determine a final estimate of value. With this process, the comparables are always adjusted to the subject property. The objective value of a property is closest to: (a) market value. (b) curb appeal. (c) listing price. (d) future value. - Your answer: (a) is correct. Objective value is what a reasonable person ends up paying for a property A loss in value due to a city sewer system in poor condition would be classified as: (a) physical deterioration. (b) functional obsolescence. (c) wear and tear. (d) economic obsolescence. - The correct answer is d: A poor sewer system is an outside influence and is considered economic obsolescence. All of the following are recognized methods of appraisal EXCEPT: (a) comparative method. (b) allocation method. (c) extraction method. (d) economic method. - The correct answer is d: There is no appraisal method known as the "economic" method. Allocation and extraction are methods of land or site valuation. Which of the following is the best expression of why real estate has value? (a) excellent potential for speculative growth (b) maximum utilization of available resources (c) closest to affluent neighborhoods (d) incalculable replacement cost - The correct answer is b: Maximum utilization of available resources relates to highest and best use. As far as sales are concerned, the most important date on an appraisal is the: (a) date of the offer. (b) date escrow is opened. (c) date of acceptance of the offer. (d) date of recording - The correct answer is d: Since the value could change for a variety of reasons during escrow, the most important date on an appraisal is the date escrow closes or in this question the date of recording.