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STATE CERT EXAM - AI TEST QUESTIONS, CGA EXACT QUESTIONS
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STATE CERT EXAM - AI TEST QUESTIONS, CGA EXACT QUESTIONS
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STATE CERT EXAM - AI TEST QUESTIONS, CGAEXACT QUESTIONS
In preparing a market value appraisal with a retrospective date of value, is the appraiser
allow to consider any information after the effective date of value, and why? - Answers -
Yes; the appraiser may use data subsequent to the effective date as a confirmation of
trends.
Which of the following values would a bank request for a new loan on an established
hotel? - Answers -Going concern value
Which of the following demand-side economic factors creates value? - Answers -Desire
& effective purchasing power
An appraiser concluded a market-derived 9% overall capitalization rate within the
income cap approach. The user of the appraisal asked the appraiser to render a second
value based upon the user's required 8.75% overall rate. What definition of value
applies to the secondary value conclusion? - Answers -Investment value
Which of the following methods of cost estimating is the most comprehensive and
accurate? - Answers -Quantity survey
An appraiser is contacted by a property manager to appraise a large & complex non-
residential property. The property manager requires the appraiser pay $3,000 to procure
the assignment. How can the appraiser accept the assignment & still comply with
USPAP? - Answers -The appraiser must disclose the the commission in the certification
& any letter of transmittal that includes conclusions.
What construction class of buildings has wood or light steel frames & roof structures? -
Answers -Class D
What term describes the lump sum benefit an investor receives upon termination of an
investment or at the intermediate analysis period during the term of an investment? -
Answers -Reversion
A staff appraiser, employed by a local bank for 5 years, plans to leave the bank to open
an independent appraisal business. Must the appraiser remove all work files for
assignments completed for the bank? - Answers -No; the appraiser may make
arrangements with the bank to access or retrieve the files.
An appraiser receives an appraisal assignment. The appraiser has not performed any
services in connection with this property in the past three years. What disclosures are
required under the USPAP? - Answers -The appraiser must disclose in the report's
certification that no prior services has been performed in the last three years.
,The assignment is to value a 9,600 sf church on a 25-acre single family parcel.
Residential land is currently selling for $55,000 an acre. However, demand for new
single-family construction is eight years out with a discount rate of 15%. Similar
churches have recently sold for between $50-$55 sf. What type of value is illustrated? -
Answers -Market value
A parcel in the path of development is zoned for high-density apartment use. It currently
has a single-unit owner-occupied dwelling on the site. The improvements do not
represent the highest & best use of the site but the current use is likely to continue until
competing sites are developed. How is the highest & best use of the site as improved
described? - Answers -Interim use
Which influence on real estate is considered economic - Answers -Extent of owner
occupancy
In what part of the appraisal report must prior services be disclosed? - Answers -
Certification
What type of assignment should be employed to determine general conditions of
supply, demand, & pricing for a specific property type? - Answers -Market analysis
The subject property is a 6,000 ft by 1,452 ft home site with a single-unit dwelling. When
the site was platted, there was no zoning. The current zoning requires a 160-acre
minimum site size for a residence. What is the status of the lot? - Answers -Surplus land
The appraisal assignment of a building under construction requires a value as of the
date of stabilized occupancy. What value is required, and what assignment condition is
employed? - Answers -Prospective market value and extraordinary assumption
What principle describes the ability of an individual or group to participate in a market? -
Answers -Effective demand
What term refers to a division of a total market based on the preferences of buyers &
sellers? - Answers -Submarket
An appraisal report allegedly contains misleading information. What entity has the
authority to determine if a violation of USPAP has occurred? - Answers -State appraiser
regulatory agency
The scope of work of the assignment requires the development of an opinion of the
leased fee interest in a commercial building. Which interest is being valued? - Answers -
Landlord
An appraisal review assignment includes the client's request that the reviewer either
agree with the appraiser's value, or disagree and conclude the reviewer's value opinion
in the report as of the date of review. Can the assignment be accepted, and why? -
, Answers -Yes; the review may develop an alternative value, but the effective date must
be the same as the date of the work under review.
When potential homebuyers investigate the zoning of nearby properties, what influence
on value are they considering? - Answers -Governmental
What force is represented by the mean and median household income level? - Answers
-Economic
In appraisal assignment, the definition of market value includes exposure time as a
component. What USPAP requirement is relevant to this assignment? - Answers -An
opinion of reasonable exposure time must be developed and reported.
An appraiser was asked to update an appraisal performed by another appraiser who
works at a different firm. May the appraiser accept this assignment, and why? - Answers
-Yes; the appraiser may prepare a new report and incorporate the original report.
Which of the following techniques should be used to perform a qualitative analysis? -
Answers -Ranking
What technique can be utilized to value a leasehold estate? - Answers -Present worth of
rent advantage
What type of risk affect operating income due to shifts in demand and/or supply? -
Answers -Market
An attorney requested an oral opinion of value prior to the completion of a written
appraisal report. At a minimum, the substantive matters of which of the following
reporting options must be met in the oral report? - Answers -Restricted Use Appraisal
Report
An appraiser receives an assignment to review an appraisal six months ago. In the
development of the review, the appraiser had gathered the pertinent information and
began the reporting process. Which of the following information must be included in the
report? - Answers -Identity of the client and intended user; intended use; effective date
of the original appraisal.
An appraiser has been asked to appraise real property interest of a single-unit
residence. The same appraiser performed an appraisal of the residence six months ago
and a construction draw inspection two years ago. What disclosure must the appraiser
make prior to accepting this assignmen? - Answers -Disclose the prior appraisal and the
prior construction draw assignment to the current client.
The lender/client requested the appraiser provide a value of opinion on a proposed
property at a stabilized occupancy. What type of value is the client requesting? -
Answers -Prospective value
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