Real Estate Appraisal (RISK) EXAM 2 Questions and Answers Graded A+
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Course
Real Estate Appraisal
Institution
Real Estate Appraisal
Real Estate Appraisal (RISK) EXAM 2
Questions and Answers Graded A+
What role does the market analysis play in an appraisal?
A) It provides data on market trends and property values
B) It predicts future property values
C) It determines construction costs
D) It evaluates buyer preferences
...
Real Estate Appraisal (RISK) EXAM 2
Questions and Answers Graded A+
What role does the market analysis play in an appraisal?
✔✔A) It provides data on market trends and property values
B) It predicts future property values
C) It determines construction costs
D) It evaluates buyer preferences
What is a significant risk factor that appraisers assess?
A) The aesthetic appeal of the property
✔✔B) The economic stability of the neighborhood
C) The owner's personal financial situation
D) The age of the property
Which appraisal approach is most useful for special-purpose properties?
A) Cost Approach
B) Sales Comparison Approach
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,✔✔C) Income Approach
D) Market Approach
What is the function of an appraisal report?
A) To provide a list of recommended repairs
✔✔B) To document the appraiser's findings and conclusions
C) To negotiate sale terms
D) To advertise the property
What does the term "adjustment" refer to in the context of comparable sales?
A) The original sale price of the property
B) The appraiser’s personal opinion
✔✔C) Changes made to comparable sales prices to reflect differences
D) The cost of repairs needed
What does RISK stand for in the context of real estate appraisal?
A) Real Estate Investment Strategy Knowledge
✔✔B) Recognizing Investment and Service Knowledge
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,C) Real Estate Insights and Knowledge
D) Risk Identification and Safety Knowledge
Which method is commonly used to estimate the value of residential properties?
✔✔A) Comparative Market Analysis (CMA)
B) Cost Approach
C) Income Approach
D) Historical Value Method
What factors are considered in the cost approach to appraisal?
A) Only location and size
✔✔B) Land value and construction costs
C) Market trends and sales data
D) Neighborhood demographics
How does the income approach determine property value?
A) By calculating the cost of construction
✔✔B) By estimating potential rental income
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, C) By comparing similar properties
D) By assessing buyer interest
What is depreciation in real estate terms?
✔✔A) A decrease in property value over time
B) An increase in property value over time
C) The maintenance costs of a property
D) The interest rate on a mortgage
Which type of property typically uses the sales comparison approach?
✔✔A) Residential properties
B) Commercial properties
C) Industrial properties
D) Agricultural properties
What is a significant factor that can affect property value?
A) The age of the property only
✔✔B) Location and surrounding amenities
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