APPRAISAL FINAL EXAM WITH
CORRECT ANSWERS
A 25-year-old property sells for $125,000. If the site is worth $25,000 and the building would cost $200,00 to replace today, what is the annual rate of depreciation? -
CORRECT ANSWER-a. .5%
b. 1.0%
c. 2.0%
d. 5.0%
**ANSWER: C
Land never depreciates, so first determine the value of the structure: $125,000 - $25,000 = $100,000. Using straight-line depreciation, you can determine the building has
depreciated by $100,00 since it was built ($200,000-$100,000), which equates to $4,000 per year ($100,000/25=$4,000). Finally, divide the annual depreciation by the
value of the structure to find the annual rate of depreciation: $4,000 / $200,000 = 2%
A document also referred to as a tax or assessors map is a(n) - CORRECT ANSWER-a. assemblage plan
b. plat map
c. plottage map
d. none of the above
****ANSWER: B
A functional problem (or obsolescence) in a home pertains to - CORRECT ANSWER-a. items outside the boundary of the subject
b. location
c. proximity to shopping
d. the utility of the property, such as a room layout
ANSWER: D
A house rents unfurnished for $500 per month. Using the gross monthly rent multiplier method, the appraiser estimates value o f the subject at $80,000. What's the
monthly gross rent mulitiplier - CORRECT ANSWER-a. .16
b. 1.60
c. 16.0
d. 160.0
ANSWER: D
A rectangular parcel of land containing five acres has 600 feet of road frontage. Depth is _____feet - CORRECT ANSWER-a. 363
b. 495
c. 661
d. none of the above
ANSWER: A
43,560 (Acre) x
A trade fixture can best be describes as - CORRECT ANSWER-a. an item attached to real estate for business purposes
b. items that were once personal property but are now real property
c. lights and plumbing items attached to the real estate
d. all of the above
ANSWER: A
Adjustments to the sale price of comparable sale properties are measured by the - CORRECT ANSWER-a. amount a typical buyer will pay for an item
b. cost per square foot
c. principle of conformity
d. quantity survey method
ANSWER: A
After freeway construction, the volume of business on a street decreased by 50%. This is considered a(n) - CORRECT ANSWER-a. amenity
b. appurtenance
c. external obsolescence
d. functional obsolescence
ANSWER: C
An appraiser is asked to appraise a vacant residential site. The neighborhood is about 75% build up. Most lots in the area are 55' to 65' wide. The vacant lot is 60' wide.
Comparable sales indicate lots are selling from $180 to $225 per front foot. What is the estimate for the subject lot? - CORRECT ANSWER-a. $7,100-$10,125
b. $9,900-$11,400
c. $10,800 - $13,500
d. $13,500-$16,500
ANSWER: C
An appraiser is performing an appraisal of an older apartment building in an established neighborhood for which he has data o n several similar apartment buildings.
However, none have sold in the past five years. Which approach will be concluded as the most credible? - CORRECT ANSWER-a. comparative unit
b. cost
c. income
d. sales comparison
CORRECT ANSWERS
A 25-year-old property sells for $125,000. If the site is worth $25,000 and the building would cost $200,00 to replace today, what is the annual rate of depreciation? -
CORRECT ANSWER-a. .5%
b. 1.0%
c. 2.0%
d. 5.0%
**ANSWER: C
Land never depreciates, so first determine the value of the structure: $125,000 - $25,000 = $100,000. Using straight-line depreciation, you can determine the building has
depreciated by $100,00 since it was built ($200,000-$100,000), which equates to $4,000 per year ($100,000/25=$4,000). Finally, divide the annual depreciation by the
value of the structure to find the annual rate of depreciation: $4,000 / $200,000 = 2%
A document also referred to as a tax or assessors map is a(n) - CORRECT ANSWER-a. assemblage plan
b. plat map
c. plottage map
d. none of the above
****ANSWER: B
A functional problem (or obsolescence) in a home pertains to - CORRECT ANSWER-a. items outside the boundary of the subject
b. location
c. proximity to shopping
d. the utility of the property, such as a room layout
ANSWER: D
A house rents unfurnished for $500 per month. Using the gross monthly rent multiplier method, the appraiser estimates value o f the subject at $80,000. What's the
monthly gross rent mulitiplier - CORRECT ANSWER-a. .16
b. 1.60
c. 16.0
d. 160.0
ANSWER: D
A rectangular parcel of land containing five acres has 600 feet of road frontage. Depth is _____feet - CORRECT ANSWER-a. 363
b. 495
c. 661
d. none of the above
ANSWER: A
43,560 (Acre) x
A trade fixture can best be describes as - CORRECT ANSWER-a. an item attached to real estate for business purposes
b. items that were once personal property but are now real property
c. lights and plumbing items attached to the real estate
d. all of the above
ANSWER: A
Adjustments to the sale price of comparable sale properties are measured by the - CORRECT ANSWER-a. amount a typical buyer will pay for an item
b. cost per square foot
c. principle of conformity
d. quantity survey method
ANSWER: A
After freeway construction, the volume of business on a street decreased by 50%. This is considered a(n) - CORRECT ANSWER-a. amenity
b. appurtenance
c. external obsolescence
d. functional obsolescence
ANSWER: C
An appraiser is asked to appraise a vacant residential site. The neighborhood is about 75% build up. Most lots in the area are 55' to 65' wide. The vacant lot is 60' wide.
Comparable sales indicate lots are selling from $180 to $225 per front foot. What is the estimate for the subject lot? - CORRECT ANSWER-a. $7,100-$10,125
b. $9,900-$11,400
c. $10,800 - $13,500
d. $13,500-$16,500
ANSWER: C
An appraiser is performing an appraisal of an older apartment building in an established neighborhood for which he has data o n several similar apartment buildings.
However, none have sold in the past five years. Which approach will be concluded as the most credible? - CORRECT ANSWER-a. comparative unit
b. cost
c. income
d. sales comparison
