What is the size adjustment for Comparable 1?

A. +1,500
B. -1,500
C. 0
D. +3,000
E. -3,000
ANSWER: E

What is the size adjustment for Comparable 2?

A. +1,500
B. - 1,500
C. 0
D. + 3,000
E. - 3,000
ANSWER: A

What is the condition adjustment for Comparable 1?

A. 0
B. +4,500
C. - 4,500
D. +9,000
E. -9,000
ANSWER: B

What is the condition adjustment for Comparable 2?

A. 0
B. +P4,425
C. - 4,425
D. +P8,850
E. - 8,850
ANSWER: C

What is the garage adjustment for Comparable 2?

A. 0
B. - 1,500
C. - 1,500
D. +P3,000
E. - 3,000
ANSWER: A

What is the garage adjustment for Comparable 3?

A. 0
B. +1,500
C. - 1,500
D. + 3,000
E. -3,000
ANSWER: C

In estimating the market value of a comparable sale, an appraiser must consider all
of the following EXCEPT?
A. whether the transaction was made in cash, terms equivalent to cash, or other
precisely revealed terms
B. whether the property had reasonable exposure in a competitive market
C. whether a fair sale was transacted, with neither the seller nor the buyer acting
under duress
D. whether the replacement cost of the property corresponds to its market value
E. whether the seller was related to the buyer
ANSWER: D
The terms financing, whether good or bad, ______.
A. have no effect on the market price
B. have no effect on the market value
C. have no effect on affordability
D. depend on fiscal and monetary policy
E. should be ignored when adjusting comparables
ANSWER: B

Adjustments to the property rights conveyed, financing, conditions of sale, date of

sale, and location are often made to the ____ of the comparable property.
A. unit price
B. actual sales price
C. price per square foot
D. gross income multiplier
E. cash equivalent value
ANSWER: B

Cumulative percentage adjustments may be used ______.

A. when the characteristics are interdependent
B. when the characteristics are independent
C. when dollar figures are available
D. when unimproved properties are being appraised
E. under no circumstances
ANSWER: A

The best unit of comparison for vacant land is ______.

A. the square foot
B. the total lot
C. a combination of square foot and front foot units
D. the linear foot
E. the unit considered important by the market
ANSWER: E

You are asked to appraise a vacant building lot. The neighborhood is about 75%
built-up. Most lots in the area are from 55 ft. to 85 ft. to 65 ft. wide; the lot
under appraisal is 60 ft. Comparable sales indicate that lots are selling at 120 to
150 per front foot. What is a good estimate of the price range for this lot?
A. 9,000-11,000
B. 7,200-9,000
C. 5,400-6,750
D. 6,600-7,600
E. 6,600-11,250
ANSWER: B

In appraising a residential property by the cost appraiser considers the ______.

A. sales prices of comparable properties
B. deprecation of the land
C. depreciation of improvements
D. potential for new competition
E. potential misuse of this approach
ANSWER: C

In the cost approach, ____ is deducted after estimating the cost to reproduce an
existing structure.
A. land cost
B. cost to maturity
C. depreciation
D. cash equivalence
E. legal factors
ANSWER: C

Economic obsolescence does NOT result from ______.

A. and outdate kitchen
B. construction of a freeway near the property
C. the presence of an earthquake fault nearby
D. building restrictions in the community
E. factors external to the subject property itself
ANSWER: D

Reproduction or replacement cost includes all of the following EXCEPT?

A. an outdated kitchen
B. construction of a freeway near the property
C. the presence of an earthquake fault nearby
D. building restrictions in the community
E. factors external to the subject property itself
ANSWER: A

Reproduction or replacement cost includes all of the following EXCEPT?

A. direct or hard costs
B. indirect or soft costs
C. entrepreneurial profit
D. fixed and variable expenses of operations
E. elevator shafts
ANSWER: A

In analyzing obsolescence , the test of curability of a component in a building is

whether the cost to cure is no greater than the ______.
A. expected increase in value
B. reproduction cost new
C. replacement cost
D. installation cost
E. economic life of the new component
ANSWER: A

Which of the following is NOT a type of depreciation?

A. entrepreneurial loss
B. external obsolescence
C. physical deterioration
D. functional obsolescence
E. economic obsolescence
ANSWER: A

Estimation of occurred depreciation and obsolescence does NOT involve ______.

A. physical deterioration
B. economic obsolescence
C. financial structure
D. functional obsolescence
E. wear and tear
ANSWER: C