Basic Appraisal Principles Questions and Answers 100% Pass

Basic Appraisal Principles Questions and Answers 100% Pass The AQB and the ASB were created for the express purpose of promoting and maintaining a high level of ____________ public trust A rod contains ______ feet. 16.5 USPAP requires an appraiser to be objective "An analysis undertaken to investigate whether a project will fulfill the objectives of the investor" is the definition of feasibility analysis Which is a TRUE statement regarding appraiser examinations? The exam is national, so the same questions are used in every state. A chain contains 100 links, which measures _______ feet. 66 65% of the houses in a neighborhood are split levels and 15% are ranches. There are a total of 300 houses. How many are ranches? 45 What is the mean of these numbers: 123.5, 136.2, 162, 188.9,153.27, 227.98, 16, 342.66, 72.7, 21.55, 168.08? 146.62 "A market in which a drop in demand is accompanied by a relative oversupply and a decline in prices" is the definition of a(n) __________ market. depressed Which valuation approach relies most heavily on the principle of substitution? sales comparison What is the median of these numbers: 19, 11, 64, 36, 81, 22, 35, 95? 35.5 Which of the following types of investments has historically generated the highest return on investment? real estate Sonic measurers employ _____________ to take measurements. sound waves Retail space is usually compared on the basis of dollars per square foot per year "An active market in which the sellers of available properties can obtain higher prices than those obtainable in the immediately preceding period; a market in which a few available properties are demanded at prevailing prices by many users and potential users" is the definition of a(n) __________ market. seller's A lot measures 248.4 feet X 378.90 feet. How many acres is that? 2.16 Who is responsible for appointing members to the ASB, AQB, and APB? the Board of Trustees Here are all the sales in your area in the last 4 months. They sold for: $178,500; $166,000; $172,750; $182,000; $168,000; $174,000; $176,000; $184,000; $170,000; $175,000; $172,000; $181,500. What is the median sale price? $174,500 The _______ maintains a national registry of state certified and licensed appraisers who are eligible to perform appraisals in federally related transactions. Appraisal Subcommittee The amount stated in a deed is called the consideration "For real property, a personal, unassignable, and typically revocable privilege or permit to perform some activity on the land of another without obtaining an interest in the property" is the definition of license Which is NOT a requirement of a valid real estate contract? description of the parties A lot measures 217 feet by 264 feet. It sold for $55,000. What was its price per acre? (Hint: when making calculations, round to 2 places!) $41,667 Which system of legal descriptions uses townships? rectangular survey Which two of the following would be private restrictions on property rights? deed restriction and mechanic's lien All of the following could lead to a non-arm's-length transaction EXCEPT knowledgeable buyer and seller The appraisal standards and qualification criteria that are published by The Appraisal Foundation achieve legal authority by adoption, citation or implementation by government agencies with the power to regulate or administrate The current number of appraisal education hours required for Certified Residential Appraiser applicants is ______ hours. 200 In a trust deed state, title to a property is vested in the __________ until the mortgage lien is satisfied. trustee Modern definitions of the word "appraisal" have replaced the word _______ with ________. estimate, opinion A facade easement is a type of_______________ easement. historic preservation In USPAP, the word "Ethics" is defined nowhere The median price of homes sold in your county 6 months ago was $224,650. Prices have been increasing at the rate of 7% per year. What is the median price of homes today? $232,513 "A deed that conveys to the grantee title to the property free and clear of all encumbrances, except those specifically set forth in the document" is the definition of a _______________ deed. warranty An appraisal is best described as an opinion of value "The interest held by the lessee (the tenant or renter) through a lease transferring the rights of use and occupancy for a stated term under certain conditions" is the definition of leasehold estate An appraisal is defined as the act or process of developing an ________ of _______. opinion, value An appraisal report is defined as "the ____________ communication of an appraisal; the document transmitted to the __________upon completion of an appraisal assignment." written or oral, client The principle of highest and best use applies to both vacant land and improved property "A purchaser's wish for an item to satisfy human needs (e.g. shelter, clothing, food, companionship) or individual wants beyond essential life-support needs" is the definition of desire Which is NOT a partial estate? fee simple estate Reporting requirements for real property appraisers are set forth in STANDARD ___ of the Uniform Standards of Professional Appraisal Practice. 2 Which of the following is NOT a characteristic of land? mobility Which of the following would NOT be considered a governmental influence on value? wage levels Under the current qualifying education criteria, there are college-level course requirements for __________ classifications. all The ETHICS RULE of USPAP is the ________ of five Rules. first Your house is valued at $186,000. You want to insure it for 80% of value. Insurance will cost $6.00 per thousand per year. How much will your insurance cost per month? $74.40 The primary purpose of USPAP is to protect public trust A lot measures 316.4 X 428.90. How many acres is that? 3.12 The federal financial institutions regulatory agencies directly involved in fair lending include all of the following EXCEPT ASB The Management Section of the ETHICS RULE states, in part, "An appraiser must __________ that he or she paid a fee or commission, or gave a thing of value in connection with the procurement of an assignment." disclose The Conduct Section of the ETHICS RULE states, in part, that an appraiser must perform assignments with Impartiality, objectivity, and independence To whom is the Fed accountable? Congress 8.8% is the same as .088 "A type of market area characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural" is the definition of district A lot measures 178 feet by 464 feet. It sold for $80,000. What did it sell for per acre? HINT: Round the acreage amount to two decimal places. $42,105 "A written, legal instrument that conveys an estate or interest in real property when it is executed and delivered" is the definition of a deed Value is created by external market forces Another name for trade fixture is chattel fixture "The study of the economics of individual spheres of activity or patterns and behaviors, e.g., a firm, an industry, a retail market, a consumer segment, pricing, local employment" is the definition of microeconomics "A business arrangement in which two or more persons jointly own a business and share in its profits and losses" is the definition of partnership When appraising an income producing property, you have the following GRMs indicated from comparable sales (122, 159, 132, 126, 122, 173, 152, 126). What is the median of the GRMs? 129 Real estate includes all of the following EXCEPT property rights Which is NOT a characteristic of tenancy in common? there is a right of survivorship Which entity is responsible for making periodic changes to USPAP? Appraisal Standards Board "The sum of a series of values divided by the number of values in the group" is the definition of mean You want to buy a house for $243,500. You can get a loan for 90% of value. You will also have to pay 2.75 points on the loan. How much will you have to put down at the closing? $30,376.63 The nationally-recognized ethical and performance standards for appraisers are known as USPAP "The present or anticipated undersupply of an item relative to the demand for it...." is the definition of scarcity "The act of transferring an interest in property or some right (such as contract benefits) to another" is the definition of assignment Two years ago, you bought a property for $264,500. Values increased in that area by 5% the first year and 7% the second year. How much is your property worth today? $297,166 The four agents of production are land, ________, capital, and _____________. labor, entrepreneurial coordination The strongest form of a deed is a warranty "The party or parties who engage, by employment or contract, an appraiser in a specific assignment" is the definition of client Transportation would be an example of a(n) __________ force affecting property values. governmental "The right to construct and maintain tunnels, subways, subcellars, pipelines, sewers, etc." is the definition of _________ rights. subsurface A drainage easement is an example of a(n) negative easement "A manifestation of willingness to be bound by the terms of an offer made in a manner invited or required by the offer" is the definition of acceptance Which is the fullest and most complete type of estate? fee simple All of the following would typically be considered to be personal property EXCEPT wall to wall carpeting The ________ established new criteria for appraiser education that went into effect in _______. AQB, 2008 A(n) __________ contract is one that is not been fully performed or completed. executory Which of these would be considered a public restriction on real property ownership? escheat A(n) ___________ contract is one that has been fully performed. executed Property Owner A has the right to develop his property into 10 lots. He sells this right to nearby Property Owner B who wishes to develop his property into additional lots. This is an example of transferable development rights Which would NOT be an example of demand in a real estate market? decreasing building starts The right of government that gives the state titular ownership of a property when its owner dies without a will or any ascertainable heirs is called escheat Which principle has the strongest application in the valuation of income producing properties? anticipation Public limitations on private property rights include all of the following EXCEPT CC&R's Which of the following situations would NOT normally require an appraisal? life insurance In a particular market, there is a demand for 500 houses per year, and there are currently 1,500 houses for sale. What does this most likely indicate? there is a three-year supply of homes currently for sale Tenancy in severalty involves ____________ owner(s). only one The four components of the Appraiser Qualification Criteria are: qualifying education, examination, experience, continuing education The distances that a boundary runs at a prescribed angle is called bounds The _____ monitors state appraisal boards. ASC Taxes would be an example of a(n) ___________ force affecting property values. governmental feet in a single acre 43560 feet