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Real Estate Appraisal questions and actual answers.
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Real Estate Appraisal questions and actual answers.
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Real Estate Appraisal questions andactual answers.
Mario's investment in a home in an older neighborhood is paying off now that the old post office next
door has been converted to a recreational open space. ANS - Change
Jane owns an empty warehouse. She's contemplating whether she stands to profit more by keeping the
industrial property or converting it to residential condominiums. ANS - Highest and Best Use
"Last year, we could have sold for $20,000 more, but there just aren't enough buyers in the current
market," you explain to your client. ANS - Competition
Which of these best describes the purpose of FIRREA Title XI? ANS - The public's and federal
government's financial interests are protected during a real estate transaction by ensuring that real
estate appraisals are performed with professional integrity.
A _______________________ Real Property Appraiser can appraise any residential property, regardless
of value or complexity, and vacant land that will be developed as residential property. They aren't
qualified to appraise commercial property. ANS - certified residential
A ___________________________ Real Property Appraiser can appraise one- to four-unit residential
properties that are valued up to $1 million and are not complex in nature. They aren't qualified to
appraise non-residential property. ANS - licensed residential
A ________________________ Real Property Appraiser can appraise any residential or non-residential
property, regardless of value or complexity. ANS - certified general
Certified general real property appraiser ANS - 300 hours
Licensed residential real property appraiser ANS - 150 hours
,Certified residential real property appraiser ANS - 200 hours
Appraiser trainee ANS - 75 hours
Your client is purchasing a single-family home with a VA loan. The listing price is $150,000. ANS -
Required
Key Points 2 ANS - - Scarcity relates to market supply--how rare is this type of property in this price
range in this location?
- Utility speaks to the function of the property—to what use can the property be put?
- Demand relates to how popular or desirable a property is—the market's thirst for that particular
property.
- Transferability has to do with the ease at which another person can purchase the property, (e.g., how
marketable the title is).
- The four factors of value are demand, utility, scarcity and transferability (they spell the acronym DUST).
- While mortgage value or market value is the most common in a residential transaction, other types of
value include investment, going-concern, insurance, salvage, liquidation, value in use, and tax
assessment value.
- An appraisal may be used to determine different types of value.
- Specific influences of property value are the improvements that exist, the construction, and available
comparables.
- Appraisers look at general influencers of value, which are categorized as geographic, physical,
economic, social, and governmental.
,- Principles that can affect the value of real estate include anticipation, change, competition, supply and
demand, conformity, contribution, highest and best use, regression, progression, and substitution.
A property needs major renovations. ANS - Drives values down
There is a cloud on the title. ANS - Drives values down
Counsels a client on the best listing price for a property ANS - Real Estate Professional
Can work for a lender, buyer, or seller ANS - Appraiser
Vlad the appraiser broke his leg and is on crutches. Is this likely to affect his ability to complete appraisal
assignments? ANS - Yes
Why does an appraiser need an understanding of business and economics? ANS - To appropriately
include information about the status of the economy when arriving at a value for a subject property
Why does an appraiser need to be good at analysis? ANS - To process multiple types of data about a
property in order to arrive at a single value
AND
To determine the scope of work and plan an appropriate process for valuing the subject property
BOTH real estate professionals and appraisers need to be knowledgeable about: ANS - - Real Estate
Market
- Mortgage Market
T/F:
"It's true that a CMA isn't as accurate or detailed as a formal appraisal" ANS - TRUE
A buyer wants to know if an investment property is worth the asking price. ANS - Appraiser
, A buyer wants to win the property by making a competitive offer. ANS - Real Estate Professional
A lender needs to know the value of a property acting as security for a conventional mortgage. ANS -
Appraiser
A seller wants to know what recent local sales are in order to set a listing price. ANS - Real Estate
Professional
Provides an unbiased estimate of value ANS - Appraiser
Works for a commission based on sales price ANS - Real Estate Professional
Always works for a flat fee ANS - Appraiser
Negotiates the best possible sales price for a client: ANS - Real Estate Professional
There are more buyers than sellers. ANS - Drives values up
The market is flooded with properties. ANS - Drives values down
Ease at which another can purchase the property ANS - Transfer-ability
Reflection of market supply, which relates to demand ANS - Scarcity
Relates to how popular or desirable a property is ANS - Demand
Four significant factors influence value. These are easy to remember because their initials spell the
acronym DUST.
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