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Real Estate Valuation and Appraisal Practice Exam questions with actual answers.
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Real Estate Valuation and Appraisal Practice Exam questions with actual answers.
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Real Estate Valuation and AppraisalPractice Exam questions with actual
answers.
A property at its highest and best use will: ANS - Produce the greatest net income over a period of time
A well done appraisal, including consideration of all available data, and completed by an appraiser of
much experience and good judgment, is best defined as: ANS - An opinion
As a concept of value, the highest and best use is the use that: ANS - Produces the greatest net return
on the investment
Smith owns an older home on a corner lot. A professional appraiser advised him that considerably more
income could be obtained if the house were torn down and a different improvement placed upon the
lot. This illustrates the principle of: ANS - Highest and best use
Which best describes the highest and best use of property? ANS - The use that will produce the highest
net income
The addition to total property value produced by an additional property component is considered to
have resulted from the: ANS - Principle of contribution
A 'real estate appraisal' is an estimate of value: ANS - Based upon analysis of facts as of a specific date
In a real estate analysis one should be more interested in: ANS - Future economic life of the
improvements
Which of the following tends to lower property values? ANS - Deferred maintenance
Which of the following is not a characteristic of value? ANS - Cost
, The value of a piece of land: ANS - Is an estimate of the present worth of future benefits
If the rezoning of a property results in the sudden increase of its value, this increase would be known as:
ANS - Unearned increment
If a person constructed a high quality home costing $100,000 in a neighborhood where other homes
were valued at $50,000, there would be an immediate loss in value. This type of loss in value is called:
ANS - Regression
Construction of homes costing $90,000 in an area of homes valued at $40,000 would affect the lesser
value homes in accordance with the principle of: ANS - Progression
To realize the maximum value of property, a reasonable degree of sociological and economic
homogeneity is necessary, but it should not become monotonously uniform. In real estate, this concept
is called the principle of: ANS - Conformity
If effective demand for real property in an area remains about the same, over time, the market price will
tend to: ANS - Rise when supply decreases
The value of the best property in the neighborhood will be adversely affected by the presence of
comparatively substandard property in the same neighborhood. This is a statement relating to value and
is known as the principle of: ANS - Regression
If the demand for houses remains constant, whereas the supply of housing: ANS - Diminishes, the value
should increase
Market value is: ANS - The price a willing seller will accept and a willing purchaser will pay
The amount of money which would be paid by a buyer to a seller for property; both buyer and seller
being ready, willing, and able to act and both being fully informed, represents that property's: ANS -
Market value
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