When reconciling the adjusted sales prices of comparables, the greatest emphasis

should be given to
A. the average
B. the median
C. the mode
D. the mean of A, B, and C
E. none of the above
ANSWER: E

Which of the following forms of appraisal report is NOT recommended?

A. completely filled-in institutional form
B. telephone conversation
C. letter report
D. long narrative report
E. demonstration
ANSWER: B

Which of the following approaches would probably be given the most weight in
appraising a large office building?
A. reproduction cost
B. subdivision development
C. replacement cost
D. income capitalization
E. market absorption
ANSWER: D

The form in which a formal appraisal is presented is called

A. a presentation of value
B. an appraisal log
C. an appraisal report
D. a value certification
E. a narrative
ANSWER: C

The form of an appraisal report

A. has no influence on the appraisal process
B. is the same, regardless of the problem
C. is set by the amount of the fee
D. is determined by the appraiser
E. determines the appraisal framework
ANSWER: A

The effective age and the useful life of a building represent judgments made by the
A. appraiser
B. property owner
C. tax assessor
D. buyer
E. insurer
ANSWER: A

The period over which existing improvements are expected to continue to contribute
to property value is their
A. effective age
B. remaining economic life
C. remaining physical life
D. period of diminishing returns
E. chronological age
ANSWER: B
For a building, effective age is best defined as
A. the average age of the roof
B. the actual age divided by the age-life
C. the age of other property in equivalent condition and utility the chronological
age of the building
D. the chronological age of the building
E. the period over which the building may be effectively used
ANSWER: C

The utility of real estate is its

A. attractiveness to the trained observer
B. longevity
C. capacity to satisfy human needs and desires
D. effective demand
E. remaining economic life
ANSWER: C

In appraising a residence, adjustments are NOT made to the comparable property for
A. age
B. lot value
C. assessed valuation
D. terms of sale
E. size
ANSWER: E

When a site has improvements on it, the highest and best use
A. is not definable
B. is its existing use
C. is its potential use
D. depends on whether or not the existing use is changeable
E. may be different from its existing use
ANSWER: E

To be considered as a comparable, a property

A. a must have been sold within the past 5 years
B. must be competitive with the subject
C. must have been sold by an open-market transaction
D. must be a similar color
E. both B and C
ANSWER: E

The direct sales comparison approach is better than the income or cost approach
because
A. fewer comparable properties are require, so it is easier to outline the results
to clients
B. there are fewer mathematical calculations, so there is less chance of
mathematical errors
C. the market for real estate is slow to change
D. it is always easier to obtain data for the direct sales comparison approach
E. none of the above true
ANSWER: E

The appraisal of an established 20-year old motel on a road with numerous

competitive motels would most likely be based on the
A. square foot are of improvements
B. number of units
C. reproduction cost
D. gross rent multiplier
E. occupancy rate
ANSWER: B

In applying gross rent multiplier analysis to the subject property, the appraiser
would use the
A. market rental
B. actual rent being paid
C. rent currently asked by the owner
D. rent offered by a potential tenant
E. rent listed in advertising the property
ANSWER: A