EXAM PREP (MCKISSOCK) QUESTIONS
AND ANSWERS 2025
What,does,not,include,physical,mobility,,but,rather,the,control,and,possession,of,all,the,rights,of
,ownership?,-,ANSWER,Purchasing,Power
If,an,appraiser,is,valuing,real,property,by,sales,comparison,,whose,actions,is,he,or,she,LEAST,likel
y,to,consider?,-,ANSWER,Government,Agencies
Which,value,characteristic,implies,the,presence,of,a,need,or,demand,,which,considers,the,mone
tary,power,to,fill,that,need?,-,ANSWER,Desire
The,rights,and,benefits,inherent,in,the,ownership,of,a,parcel,of,land,would,be,defined,as:,-
,ANSWER,Real,Property
Which,statement,is,TRUE,regarding,appraisers,and,value?,-
,ANSWER,Market,value,is,only,one,type,of,value;,appraisers,estimate,other,types,of,value,as,well
.
What,is,the,motivation,of,an,individual,,group,of,persons,,or,business,entity,involving,the,purcha
se,of,an,item?,-,ANSWER,Desire
What,is,the,focal,point,of,a,real,property,appraisal?,-,ANSWER,The,value,of,ownership,rights
USPAP,cautions,appraisers,to,use,the,definition,of,market,value,that,is,specified,in,the,DEFINITIO
NS,section,of,USPAP.,-,ANSWER,False.
Which,methods,are,most,appropriate,to,the,sales,comparison,approach?,-
,ANSWER,Economics,and,Statistics
,Appraiser,Abigail,is,appraising,a,newer,,high-
tech,steel,mill.,In,delineating,her,market,,which,of,these,should,she,most,likely,consider?,-
,ANSWER,Properties,within,a,region,or,several-state,area
Which,market,is,inefficient?,-,ANSWER,Real,estate,market
The,growth,rate,is,higher,in,Community,A,than,Community,B,,because,Community,A,has,public,
water,and,sewage,available.,As,a,result,,property,values,are,higher,in,Community,A.,This,is,an,ex
ample,of,what,force,affecting,the,market?,-,ANSWER,Environmental
A,large,,old,,dilapidated,commercial,building,sits,in,an,economically,depressed,section,of,the,city
.,There,are,no,market,participants,who,have,the,financial,capability,to,renovate,and,use,such,a,l
arge,building.,This,is,an,example,of,what,force?,-,ANSWER,Economic
Which,statement,is,TRUE,regarding,the,appraisal,development,process?,-
,ANSWER,Development,and,reporting,are,two,separate,and,distinct,functions
Harry,is,preparing,a,real,property,appraisal,report,for,his,client.,Which,USPAP,Standard,must,he,f
ollow,when,preparing,this,report?,-,ANSWER,STANDARD,2
An,appraiser,inspects,a,subject,property,,which,is,a,vacant,apartment,building.,The,appraiser's,
measurements,and,field,notes,from,the,inspection,would,be,considered,what,type,of,data?,-
,ANSWER,Specific,Data
An,appraiser,is,valuing,a,small,apartment,building.,The,appraiser,gathers,information,on,demogr
aphics,and,employment,trends,,which,is,useful,in,analyzing,the,market.,This,would,be,considere
d,what,type,of,data?,-,ANSWER,General,Data
The,appraisal,development,process,and,appraisal,reporting,process,are,considered,to,be,one,fun
ction.,-,ANSWER,False
,In,the,appraisal,process,,what,type,of,data,pertains,only,to,the,subject,property,and,comparable
s?,-,ANSWER,Specific,Data
Dave,is,completing,a,market,value,appraisal,on,an,office,building.,Which,statement,will,most,like
ly,be,TRUE,regarding,his,highest,and,best,use,analysis?,-
,ANSWER,He,will,have,to,develop,two,highest,and,best,use,opinions.
What,is,the,most,profitable,use,to,which,a,property,can,be,put?,-,ANSWER,Highest,and,best,use
When,considering,legal,permissibility,and,current,land,use,regulations,,an,appraiser,must,also,c
onsider,__________.,-,ANSWER,Reasonably,probable,modifications,of,land,use,regulations
Margot,is,appraising,a,vacant,site,which,is,suitable,for,commercial,development.,In,selecting,co
mparable,sales,,what,would,likely,be,her,most,important,consideration?,-
,ANSWER,Sales,should,have,the,same,highest,and,best,use
A,property,is,improved,with,a,building,,and,is,valued,at,$425,000.,It,would,cost,$50,000,to,raze,a
nd,remove,the,building,,and,the,value,of,the,vacant,site,would,be,$500,000.,Under,this,scenario,
,razing,and,removing,the,building,would,be,considered,____________.,-
,ANSWER,Financially,feasible
An,appraiser,takes,secondary,data,on,a,sale,from,the,local,MLS,,and,personally,verifies,elements
,of,the,transaction,and,the,physical,characteristics,of,the,property,with,the,purchaser.,This,sale,
would,now,be,considered,what,type,of,data?,-,ANSWER,Primary,Data
A,building,owner,installs,a,new,"green",roof,on,the,structure,at,a,cost,of,$300,000.,The,value,of,
the,building,only,increases,by,$200,000,as,a,result,of,the,new,roof.,This,demonstrates,which,eco
nomic,principle?,-,ANSWER,Contribution
Value,is,a,fact,,or,an,estimate,of,fact.,-,ANSWER,False
, The,Concentric,Zone,Model,includes,which,zones?,-
,ANSWER,Commuter,,residential,,working,class,,transition,,factory,,Loop,or,Central,Business,Distr
ict
Which,statement,is,FALSE,regarding,the,sales,comparison,approach?,-
,ANSWER,When,the,appraiser,has,an,understanding,of,value,influences,in,the,market,,the,appro
ach,is,more,reliable.
Cyndi,contacts,the,buyer,and,verifies,that,a,comparable,sale,she,is,using,was,purchased,on,the,o
pen,market,,between,a,typically-
motivated,seller,and,buyer,,who,were,not,related,to,each,other.,What,type,of,sale,is,this?,-
,ANSWER,Arm's,length,transfer
What,is,the,primary,purpose,of,the,sales,comparison,approach?,-
,ANSWER,To,arrive,at,a,value,indication,for,the,subject,property
The,sales,comparison,approach,is,primarily,based,on,what,principle?,-,ANSWER,Substitution
A,property,being,appraised,has,a,debt,coverage,ratio,of,1.1.,What,does,this,mean?,-
,ANSWER,The,property,generates,enough,income,to,make,the,mortgage,payment.
Peggy,blackmails,Frank,into,selling,his,property,to,her.,The,sale,appears,in,the,local,MLS,and,is,re
ported,in,the,local,assessment,office,as,a,valid,sale.,Is,this,an,arm's,length,transfer?,-
,ANSWER,No
The,sales,comparison,approach,is,most,effective,when,the,subject,and,comparable,sales,all,have
,the,same,potential,highest,and,best,use.,-,ANSWER,True
What,helps,appraisers,understand,and,apply,accurate,analysis,in,the,evaluation,of,real,estate?,-
,ANSWER,Statistical,techniques
