1 | M O C K E X A M – F I N A L C O A C H I N G F O R 2 0 2 1 R E A GENERAL REVIEW CONDUCTED BY

Prime Real Estate Values and integrated Learnings, Inc. REAL ESTATE SERVICE - APPRAISER REAL ESTATE
APPRAISER Licensure Examination ------- PROFESSIONAL APPRAISER EXAM SET A INSTRUCTION: Select
the correct answer for each of the following questions. Mark only one answer for each item by shading
the box corresponding to the letter of your choice on the answer sheet provided. MULTIPLE CHOICE 1. In
appraisal report writing, which reports intend to demonstrate that appraiser has a complete
understanding off all the appraisal process, as well as the expertise in applying the appraisal process to a
specific situation a. Oral report b. Narrative report c. Self-contained appraisal report d. Summary
appraisal report 2. Which approach to value is generally NOT used for residential property appraisal? a.
Sales comparison approach b. Cost approach c. Extraction approach d. Income approach 3. What refers
to Cost Approach? Define the following statements. I. A single universal approach to value real estate II.
A method of estimating reproduction and replacement cost III. An estimate of the investment requires to
duplicate the property in its present condition IV. The approach used to determine the cost of replacing
the property loss from deterioration 2 | M O C K E X A M – F I N A L C O A C H I N G F O R 2 0 2 1 R E A
GENERAL REVIEW CONDUCTED BY Prime Real Estate Values and integrated Learnings, Inc. V. A method to
estimate the value plus the cost of replacement and improvements minus depreciation a. I, III, IV, V b. II,
III, IV, V c. I, II, III, IV d. I, II, IV, V 4. If the subject property has an 85% occupancy rate, what conclusion
can be drawn if the occupancy rate in the area is 95% a. The rent is low b. The rent is high c. The
management is performing below average d. The advertising is below average 5. Compute the area of
the square circumscribed by a circle with a diameter of 4 meters. a. 25.00 square meters b. 4.00 square
meters c. 8.00 square meters d. 2.25 square meters 6. Old homes in Baguio City, in a particular market
area have two fireplaces, and the subject property has only one fireplace, a difference in value, if avy due
to the absence of a fireplace is an example of Principle of __________. a. Regression b. Balance c.
Substitution d. Contribution 7. Which of the following estimates will produce a capitalization rate of 8%
a. Property value of Php4,000,000 and effective operating income of Php500,000 3 | M O C K E X A M – F
I N A L C O A C H I N G F O R 2 0 2 1 R E A GENERAL REVIEW CONDUCTED BY Prime Real Estate Values and
integrated Learnings, Inc. b. Property value of Php5,000,000 and effective operating income of
Php400,000 c. Property value of Php5,000,000 and effective net operating income of Php400,000 d.
Property value of Php4,000,000 and effective operating income of Php500,000 8. What is also known as
the Guideline Transaction Method, which utilizes information on transactions involving assets that are
the same or similar to the subject asset to arrive at an indication of value? a. Gordon growth model b.
Market approach consideration c. Comparable transaction method d. Guideline publicly-traded
comparable method 9. Which is not part of presentation of data section of a narrative report? a.
Intended use b. Definition of value, date of value estimate c. Assumptions d. Table of contents 10. In
accounting term, what form of depreciation represents the total depreciation taken against the cost of
an asset, as of given date? a. Accumulated b. Curable c. Accrued d. Incurable 11. The following are the
generic descriptions of machinery for appraisal, EXCEPT; a. Brand name b. Transformers c. Pumps d.
Lathes 4 | M O C K E X A M – F I N A L C O A C H I N G F O R 2 0 2 1 R E A GENERAL REVIEW CONDUCTED
BY Prime Real Estate Values and integrated Learnings, Inc. 12. In real property taxation, identify the
determining factor in applying the appropriate assessment level of a given market value of real property
using the approved schedule of market values. a. Predominant use b. Land use c. Principal use d. Actual
use 13. A real estate investor bought a 10 hectares of raw agricultural land for Php60,000,000. If the
value of the raw agricultural land will normally increase by 6% per year and the inflation is estimated to
be at 2% for the next for years, what will be the projected value of the land at the end of the fourth year
taking into consideration inflammation? a. Php88,159,684.61 b. Php64,800,000.57 c. Php79,200,000.23
d. Php81,629,337.60 14. What is the circumference of a circle with a given radius? a. Pi multiply by
radius square divide by 2 b. Pi multiply by radius c. Pi multiply by radius square d. Pi multiply by radius
multiply by 2 15. An eight year old building is currently being valued at Php12,500,00. Determine the
original value of the building of its value has appreciated by 70% since it was built. a. Php7,128,500 b.
Php6,812,500 c. Php7,812,500 d. Php8,500,200 5 | M O C K E X A M – F I N A L C O A C H I N G F O R 2 0 2
1 R E A GENERAL REVIEW CONDUCTED BY Prime Real Estate Values and integrated Learnings, Inc. 16.
Determine the amount of concrete needed to fill a cylindrical hole with a radius of 1 meter and depth of
3 meters a. 9.42 cubic meters b. 2.36 cubic meters c. 4.71 cubic meters d. 37.7 cubic meters 17. What
should the appraiser do in case that in the preparation of the appraisal report, his/her analysis found out
that one of the approaches used is not applicable in the engagement? a. State in the report that the
approach is not applicable and explain his/her reason b. Use hypothetical data to make the approach
applicable c. Do not include the approach in the report d. Hust state in the report that the approach is
not relevant 18. In valuation, the appraiser is also aware that the sales prices of a property is also the
_____________ a. Market value b. Appraised value c. Transaction price d. Insurance value 19. Define
Property Valuation and Taxation Reform Agenda from the following: I. Implement a valuation system that
will assess property values at their market levels thru the Valuation Reform Act II. Establish an
independent National Valuation Authority that will set and enforce valuation standards III. Raise the level
and professionalize the property valuation practice IV. Develop valuation standards for government and
private professional practitioners a. I, III, IV b. II, III, IV c. I, II, III, IV 6 | M O C K E X A M – F I N A L C O A C
H I N G F O R 2 0 2 1 R E A GENERAL REVIEW CONDUCTED BY Prime Real Estate Values and integrated
Learnings, Inc. d. I, II, III 20. A triangular residential lot in Cavite City is measured at 40 meters at its base
and a depth 30 meters cost Php3,000 per square meter. The property has a 15% corner influence and a
topography advantage of 10%. Compute the value of the residential lot. a. Php1,980,000 b.
Php4,500,000 c. Php2,070,000 d. Php2,250,000 21. It is the remaining income considered, capitalized
into a value indication when a financial analysis is made of the net income that can be obtained by an
income-producing use and a deduction from the net income is made for the following financial return
required by the improvements. Which of the following this technique is being applied? a. Subdivision
development technique b. Sales comparison method c. Ground rent capitalization d. Land residual
technique 22. A property composed of a house and lot was recently sold for P4,800,000. Using the rule-
ofthumb of land to building ratio, determine the value of the building a. Php2,400,000 b. Php3,360,000
c. Php2,880,000 d. Php3,840,000 23. Determine the total cost to fill up the cylindrical hole with a radius
of 1 meter and depth of 3 meters, if the per cubic feet cost of concrete is Php12,000, transportation cost
is Php15,000 per kilometer and the cylindrical hole is 2.5 miles from the concrete plant a. Php160,008 b.
Php459,192 7 | M O C K E X A M – F I N A L C O A C H I N G F O R 2 0 2 1 R E A GENERAL REVIEW
CONDUCTED BY Prime Real Estate Values and integrated Learnings, Inc. c. Php1,657,632 d. Php259,596
24. The Valuer shall take account of, and make reference to other matters that have a material impact on
the valuation. Identify these property types and rights being valued: I. The status of tenements, rights
and other interest; II. All mineral or petroleum deposits within the boundaries of the tenets or rights III.
Access to markets and the quality and quantity of product that can be sold IV. Services and
infrastructure, and any toll arrangements, fees or liabilities related thereto; V. Taxation and royalties VI.
Site rehabilitation, reclamation and closure cost; VII. Residual value estimates a. I, II, III, IV, V, VI b. I, II, III,
IV, V, VI, VII c. II, II, IV, V, VI, VII d. I, II, III, V, VI, VII 25. A rectangular lot has an area of 48 square meters
with a 6 meters width. If the length of the lot is reduced by ½ and the width is reduced to ⅓. What is the
percentage decrease of the lot area? a. 500 b. 600 c. 800 d. 400 26. What can be drawn by the equation:
x + y = 0 in the Cartesian graph? a. Parabola b. Straight line c. Circle d. Curved line 8 | M O C K E X A M –
F I N A L C O A C H I N G F O R 2 0 2 1 R E A GENERAL REVIEW CONDUCTED BY Prime Real Estate Values
and integrated Learnings, Inc. 27. Pursuant to the Philippine Qualification Framework Act, the following
are the agencies responsible for each education level EXCEPT _______ a. Department of Education b.
Department of Science and Technology c. Technological Education and Skills Development Authority d.
Commission on Higher Education 28. What agreement refers to the agreement within the United Nation
Framework Convention on Climate Change that deals with green gas emissions mitigation and
adaptation in which the Philippines is a member? a. Agenda 21 b. Kyoto Protocol c. Paris Agreement d.
Treaty of Paris 29. Which refers to the total amount of greenhouse gases produced to directly and
indirectly support human activities a. Ozone deflator b. Carbon footprint c. Carbon gases d.
Chlorofluorocarbons emission 30. Geographical information system involves data capture and tools
resulting to data input. Which of the following is not part of data capture? a. Interactive terminal b.
Existing map c. Sensor d. Field observation 31. Which foreign technology company was blacklisted by the
U.S. Government in May 2019 because it was alleged that its equipment are previously unsafe? 9 | M O
C K E X A M – F I N A L C O A C H I N G F O R 2 0 2 1 R E A GENERAL REVIEW CONDUCTED BY Prime Real
Estate Values and integrated Learnings, Inc. a. Panasonic b. Samsung c. Huawei d. Xiamoi 32. Which
appraisal term is used to describe the rate at which invested capital will be returned over a period of
time? a. Recapture b. Interest c. Capitalization d. Investment 33. Which of the following Social
Development Goals DOES NOT address the problem of quality of life? a. Good health and well being b.
No poverty c. Life below water d. Quality education 34. The following are the methods of presenting the
appraisal information in a written format EXCEPT _________ a. Memo report b. Narrative report c. Form
report d. Letter report 35. Identify the basic system of coordinates used to describe the spatial
distribution of elements in a Geographical Information System (GIS). a. Map projecting b. Cross-hatching
c. Computer-aided design 10 | M O C K E X A M – F I N A L C O A C H I N G F O R 2 0 2 1 R E A GENERAL
REVIEW CONDUCTED BY Prime Real Estate Values and integrated Learnings, Inc. d. Modelling 36. Select
from the following checklist of observable attributes of real property (Land) that should not be
overlooked in conducting field inspection: I. Geographical location (topography, squatters) II. Physical
condition (shape, size, swamp) III. Land improvements (plants, structure) IV. Legal limitations (zoning,
easements) V. Services available (utilities, amenities, facilities) a. I, II, III, IV, V b. II, III, IV, V c. I, III, IV, V d.
I, II, III, IV 37. In using the direct sales comparison approach in the appraisal of a residential building, the
value can be derived by comparing the ____________ a. Sale of the properties b. Age of the properties c.
Design of the properties d. Original cost of the properties 38. Choose from the following what Appraisal
or Valuation is all about. I. An act of estimating the value of a property for a specific purpose as of
specific date II. A valuation of property by the estimate of an authorized person III. The result of the
valuing the property, making a cost estimate, forecasting earnings or any combination of two or more
stated results IV. The determination of the monetary values of the property rights encompass in an
ownership at some specified time/period a. I, III, IV b. II, III, IV 11 | M O C K E X A M – F I N A L C O A C H I
N G F O R 2 0 2 1 R E A GENERAL REVIEW CONDUCTED BY Prime Real Estate Values and integrated
Learnings, Inc. c. IV,II, I d. I, II, III, IV 39. Identify the results of a valuation, verbally communicated to a
client or presented before a court either as expert testimony or by means of disposition, supported by a
work file and at a minimum followed up by a written summary of the valuation? a. Oral report b. Written
report c. Valuation report d. Compliance statement 40. What is the total land area distribution of the
Philippines? a. 40% forestland; 40% alienable lands; 20% private lands b. 30% forestland; 30% alienable
lands; 40% private lands c. 20% forestland; 20% alienable lands; 20% public lands; 20% private lands;
20% unclassified lands d. 50% forestland; 47% alienable lands; 3% unclassified lands 41. Appraisal for
insurance purposes largely depends of _________ a. Cost estimate b. Highest and best use c. Book value
d. Specialty value 42. A house and lot was bought for a price of Php15,000,000.00. If a similar house of
the same age area and structure within the vicinity was found out to cost Php11,000,000.00. Determine
the cost of the land and the method used? a. Php 26,000,000.00 sales approach method b. Php
4,000,000.00 abstraction method c. Php 4,000,000.00 sales approach method d. Php 4,000,000.00
income approach method 12 | M O C K E X A M – F I N A L C O A C H I N G F O R 2 0 2 1 R E A GENERAL
REVIEW CONDUCTED BY Prime Real Estate Values and integrated Learnings, Inc. 43. The law of supply
and demand is _________ a. Legislated by senate b. Not used in appraisal process c. A basic economic
principle d. Short term in application 44. The following are the classification of real property for purposes
of assessment, EXCEPT _____________ a. Marshland, grassland b. Mineral, timberland, special c.
Commercial, industrial d. Residential, agricultural 45. A homeowner would like to put a water tank atop
his house. He has two choices; whether to install a cube measuring 2 meters on all sides or a spherical
shaped tank measuring 3 meters in diameter. If he wishes to install a tank that would yield the greater
volume of water, which shape would he choose? a. Cube b. Sphere c. Either shape will do because both
will yield the same water volume d. Neither shape is advisable because the water tank will destroy the
roof of his house 46. What is the final step to be undertaken in the reconciliation part of the appraisal
report? a. Select the final value estimate b. Review previous work and analysis c. Decide on which data
to be collected d. Identify which of the three approach to use 47. Analytic geometry provides technique
of visualizing numbers as points on a graph and equations as geometric shapes. Determine the shape of
the equation x - y = 0 when graphed 13 | M O C K E X A M – F I N A L C O A C H I N G F O R 2 0 2 1 R E A
GENERAL REVIEW CONDUCTED BY Prime Real Estate Values and integrated Learnings, Inc. a. Ellipse b.
Straight line c. Parabola d. Circle 48. Determine the amount of concrete needed, IN CUBIC FEET, to fill a
cylindrical hole with a radius of 1 meter and depth of 3 meters. (Let pi = 3.1) a. 166.33 b. 83.34 c. 332.66
d. 1331.36 49. Within how many days from the receipt of the notice of assessment can a property owner
file an appeal with the Local Board of Assessment Appeal? a. 90 b. 30 c. 45 d. 60 50. A house and lot was
purchased for Php15,000,000.00. The house alone was valued at Php8,000,000.00. Compute the ratio of
the house to the total purchase price. a. 66.67% b. 76.66% c. 33.33% d. 56.67% 51. Applying the
maximum assessment level prescribed under RA 7160, otherwise known as the Local Government code
of 1991, a building with a market value of Php1,500,000.00 will fetch the highest assessed value if it is
used for _____________ a. Commercial purpose b. Industrial purpose 14 | M O C K E X A M – F I N A L C
O A C H I N G F O R 2 0 2 1 R E A GENERAL REVIEW CONDUCTED BY Prime Real Estate Values and
integrated Learnings, Inc. c. Timberland purpose d. Agricultural purpose 52. A 100-unit apartment
complex include 60 one-bedroom and 40 two-bedroom units that are rented out for Php4,000.00 and
Php7,000.00 respectively. The apartment complex has vacancy rate of 5%, a miscellaneous income
Php50,000.00 per year and an annual operating expense of Php600,000.00. Compute the potential gross
income of the apartment complex. a. Php6,240,000.00 b. Php5,928,000.00 c. Php6,290,000.00 d.
Php5,978,000.00 53. What is the occupancy rate of the apartment complex that has 400 units, 50 units
of which are available for lease? a. 75.50% b. 80.75% c. 87.50% d. 85.70% 54. A trapezoidal residential
lot in Cavite City is measured at 40 meters at its longer base, 30 meters at the shorter base and 20
meters depth and cost Php4,000 per square meter. The property has a 20% corner influence and a
topography disadvantage of 5%. Compute the value of residential lot. a. Php2,500,000 b. Php3,220,000
c. Php3,500,000 d. Php3,360,000 55. What type of government is being proposed by President Duterte?
a. Parliamentary b. Presidential 15 | M O C K E X A M – F I N A L C O A C H I N G F O R 2 0 2 1 R E A
GENERAL REVIEW CONDUCTED BY Prime Real Estate Values and integrated Learnings, Inc. c.
Authoritarian d. Federalism 56. A commercial building was constructed at a cost of Php30,000 per square
meter on a 1,000 square meter rectangular lot which has a 20 meters frontage. If the building has a
setback of 3.5 meters on all sides, compute the cost of the building a. Php16,770,000 b. Php18,660,000
c. Php15,770,000 d. Php8,000,000 57. In a residential area, a square lot with an area of 625 square
meter is price at Php8,000,000.00. If one side of the square is increased by a 5 meters and the other side
of the square is decreased by 6 meters, determine the price of the resized residential lot using the given
data information: a. Php7,680,000 b. Php5,120,000 c. Php11,520,000 d. Php8,000,000 58. What are the
rights or remedies of buyers if developer/owner failed to develop the project according to the approved
plans within the period of completion? a. File a suit with the Courts of HLURB b. Non-forfeiture of its
installment payments c. Obtain 100% refund of the total amount paid including amortization, legal
interest excluding delinquency interest or penalty d. Suspension of the amortization payments 59. Which
of the following is not one of the required qualifications for assessors? a. A resident of the LGU
concerned b. Lawyer 16 | M O C K E X A M – F I N A L C O A C H I N G F O R 2 0 2 1 R E A GENERAL
REVIEW CONDUCTED BY Prime Real Estate Values and integrated Learnings, Inc. c. First grade civil service
eligible d. Civil or mechanical engineer 60. A 100-unit apartment complex has 60 one-bedroom and 40
two-bedroom. The prevailing monthly rental in the vicinity ih Php4,000 for a one-bedroom unit and
Php7,000 for a twobedroom unit. Aside from the rental income, it is estimated that the apartment
complex will earn a miscellaneous income of Php50,000 per annum from advertisement. Operating the
apartment complex will incur an annual operating cost of Php600,000. Compute the potential gross
income of the apartment complex. a. Php5,978,000 b. Php5,928,000 c. Php6,290,000 d. Php6,240,000
61. Compute the MEAN from the given set of numbers such as 15, 13, 14, 17, 20, 22, 14, 19, 13, 14, 15.
a. 17 b. 16 c. 20 d. 14 62. What part of the narrative appraisal report contains the disclaimer and basic
conditions pertaining the appraisal undertaken? a. Reconciliation b. Statement of limiting conditions c.
Letter of transmittal d. Summary 63. A locally-made ride mill was acquired new in 1998 for Php 100,000.
Compute the Replacement Cost New Less Depreciation (RCNLD) for 2013 if the local price index is 1.138
and economic life is 20 years. 17 | M O C K E X A M – F I N A L C O A C H I N G F O R 2 0 2 1 R E A
GENERAL REVIEW CONDUCTED BY Prime Real Estate Values and integrated Learnings, Inc. a. Php 108,
110 b. Php 28,450 c. Php 113,800 d. Php 85,350 64. What is the meaning of GPS a. Global positioning
system b. Geological projection system c. Geographical positioning standards d. Global projection
standards 65. For the local taxation, the fair market value of used machinery is the _________ a. Cost of
an equivalent b. Replacement cost new less depreciation c. Cost in the second-hand market d.
Acquisition cost less depreciation 66. The following national government agencies shall be supervised by
the DHUD EXCEPT __________________ a. Social Housing Finance Corporation b. Housing and Land Use
Regulatory Board c. Home Development Mutual Fund d. National Housing Authority 67. In the sales
comparison approach, an adjustment was made because the comparable was sold as a life estate and
the subject involves a fee simple absolute estate. This element of comparison is with respect to the
_____________ a. Financing terms b. Conditions of sale c. Market conditions d. Property rights conveyed
18 | M O C K E X A M – F I N A L C O A C H I N G F O R 2 0 2 1 R E A GENERAL REVIEW CONDUCTED BY
Prime Real Estate Values and integrated Learnings, Inc. 68. The types of appraisal written reports are the
following EXCEPT ________ a. Survey b. Letter survey c. Form d. Narrative 69. Determine the resulting
fraction in dividing ⅛ by ⅓ a. ⅜ b. 5/24 c. 1/24 d. ⅝ 70. Donors tax for the first P100,000 is ________% a.
3 b. 0 c. 1 d. 2 71. A structure with a total of gross leasable area (GLA) of 2,00 square foot would cost $65
per square foot to reproduce today. It has an expected economic life of 60 years, and an effective age of
10 years. The lot has a market value of $35,000. What is the estimated value of the property. a. $143,300
b. $108,300 c. $112,500 d. $165,000 72. A 100-unit apartment complex includes 60 one-bedroom and 40
two-bedroom units that are rented out for Php4,000.00 and Php7,000.00 respectively. The apartment
complex has vacancy rate of 5%, a miscellaneous income Php50,000.00 per year and an actual operating
expenses of Php600,000.00. Compute the effective gross income of the apartment complex. 19 | M O C
K E X A M – F I N A L C O A C H I N G F O R 2 0 2 1 R E A GENERAL REVIEW CONDUCTED BY Prime Real
Estate Values and integrated Learnings, Inc. a. Php6,290,000.00 b. Php5,978,000.00 c. Php5,928,000.00
d. Php5,378,000.00 73. What refers to a HIGHLY ACCURATE method of field operations for identifying
real property units, defining property boundaries, determining actual use, and discovering undeclared
properties for taxation purpose? a. Tax mapping b. Data computerization c. Records conversion
management d. Real property tax collection operations 74. Identify the resultant value if the area of a
rectangular lot is divided by its road frontage a. Lot depth b. Lot length c. Lot elevation d. Lot width 75.
The final value obtained and presented by the appraiser in his report is the result of the ___________ a.
Honest assessment of facts b. Careful study of incidents c. Weiging of the indicated value based on the
data gathered, using the three (3) value approaches d. Average of the three (3) value approaches 76.
Enumerate the KEY STEPS in the Guidelines if Publicly-traded Comparable Method I. Identify the relevant
guideline publicly-traded comparable and calculate the key valuation metrics for those transactions 20 |
M O C K E X A M – F I N A L C O A C H I N G F O R 2 0 2 1 R E A GENERAL REVIEW CONDUCTED BY Prime
Real Estate Values and integrated Learnings, Inc. II. Identify the valuation metrics/comparable evidence
that are used by participants in the relevant market III. Perform a consistent comparative analysis of
qualitative and quantitative similarities and differences between the publicly-traded comparables and
the subject asset IV. Make necessary adjustments to the valuation metrics to reflect V. Apply the
adjusted valuation metrics to the subject aset and if multiple valuation metrics are used, weight the
indication of value a. III, IV, V, I, II b. II, I, III, IV, V c. I, II, III, IV, V d. III, IV, V, II 77. Compute the vacancy rate
of the apartment complex that has 400 units, 50 of which are available for lease a. 12.50% b. 11.00% c.
10.50% d. 13.00% 78. What is a circumstance where a seller is under compulsion to sell, the price
obtainable depends on the nature of pressure on the seller or the reasons why proper marketing cannot
be undertaken? a. Freehold internet b. Going concern c. Forced sale d. Extraction method 79. The value
added to the total property value by a particular component is shown on what economic principle of the
value of property? a. Contribution b. Substitution 21 | M O C K E X A M – F I N A L C O A C H I N G F O R 2
0 2 1 R E A GENERAL REVIEW CONDUCTED BY Prime Real Estate Values and integrated Learnings, Inc. c.
Anticipation d. Conformity 80. Three identical water tanks are to be installed on a building. These
cylindrical tanks are 3 meters hgh with 2-meter radius circular bases. If these tanks are to be placed on
their sides, separated by a 1-meter gap, how large an area has to allotted for the water tanks atop the
building? a. 42 square meter b. 56 square meters c. 28 square meters d. 40 square meters 81. In the
income approach, the estimated value of the property is calculated by ________ a. Dividing the net
operating income by the capitalization rate b. Dividing the gross operating income by the capitalization
rate c. Multiplying the gross operating income by the capitalization rate d. Multiplying the net operating
income by the capitalization rate 82. What method/approach is used to estimate the value of the land by
estimating first the value of the improvement as per Sec 210 of the LGC, and the value of improvement is
deducted from the sale price to derive the land value? a. Income Capitalization Approach b. Cost
Approach c. Abstraction Method d. Market Data Approach 83. In the preparation of the appraisal report,
recent sale of the subject property should ________ a. Be discussed in the appraisal report b. Be use as
comparable c. Not be considered in the report d. Be considered confidential 22 | M O C K E X A M – F I N
A L C O A C H I N G F O R 2 0 2 1 R E A GENERAL REVIEW CONDUCTED BY Prime Real Estate Values and
integrated Learnings, Inc. 84. An office building was built 10 years ago and leased to a call center for 25
years. What approach will you use to appraise its value today? a. Income approach b. Cost approach c.
Market data approach d. Sales comparison approach 85. The following properties are exempted from
payment of real property tax EXCEPT _______ a. Buildings owned by a municipal government b. Lands
owned by educational institution used for commercial purposes c. Land owned by cooperatives
registered with the CDA d. Machinery and equipment used for pollution control 86. In sales comparison
approach to value, what is the MINIMUM number of closed comparables are needle in the appraisal
report? a. Three b. Two c. Four d. Five 87. The current interest rate for real estate loans offered by a
savings bank is 33 ⅓ % lower than the previous year. Express the percentage decrease as a fraction a.
33.3/100 b. ⅔ c. 33 ⅓ d. ⅓ 88. Determine the perimeter of the rectangular lot with length and width of
15 meters and 10 meters respectively? a. 60 meters 23 | M O C K E X A M – F I N A L C O A C H I N G F O R
2 0 2 1 R E A GENERAL REVIEW CONDUCTED BY Prime Real Estate Values and integrated Learnings, Inc. b.
25 meters c. 50 meters d. 40 meters 89. Which refers to an appraisal report in letter form with the
Appraiser’’s opinion of the value, supporting data, analysis and interpretation preserved in files? a. Oral
report b. Narrative report c. Certificate form d. Standard form 90. In a residential area, a square lot with
an area of 625 square meters was bought at an arm’s length for a price of Php6,000,000.00. Determine
the cost of the adjacent lot with a dimension of 30 meters by 25 meters. a. Php7,200,000 b.
Php8,000,000 c. Php7,000,000 d. Php6,500,000 SITUATIONAL Situation 1 - A residence is 12 years old but
has been so well cared for that it is in good condition as a typical 8 year old property. Residences in this
area typically last 60 years, and even that life span may be extended with extensive renovation. 91. The
effective age of the residence is _____ years a. 8 b. 100 c. 12 d. 60 24 | M O C K E X A M – F I N A L C O A
C H I N G F O R 2 0 2 1 R E A GENERAL REVIEW CONDUCTED BY Prime Real Estate Values and integrated
Learnings, Inc. 92. The chronological age of the residence is ___ years a. 6 b. 60 c. 100 d. 12 93. The
remaining economic life of the residence is _____ years a. 52 b. 60 c. 48 d. 100 94. The normal life
expectancy of the residence is _____ years a. 8 b. 60 c. 12 d. 100 95. The life span of the residence may
be extended to ______ years with extensive renovation a. 100 b. 8 c. 60 d. 12 Situation 2 - A P12 million
office building is purchased with an 80% loan to value ratio mortgage, payable over 30 years at 11%
interest with monthly og P91,423. At 100% occupancy, rents would be P2 million. The vacancy trend in
the area is 2.5%. Operating expenses amount to P650,000, including P50,000 placed in a replacement
reserve. The land is considered to be worth P2 million. 96. What ration, expressed as a percentage, is
between 80 and 85? 25 | M O C K E X A M – F I N A L C O A C H I N G F O R 2 0 2 1 R E A GENERAL REVIEW
CONDUCTED BY Prime Real Estate Values and integrated Learnings, Inc. a. Overall rate b. Mortgage
constant c. Improvement d. Vacancy 97. What ratio, expressed as a percentage, is between 10 and 11? a.
Mortgage constant b. Vacancy c. Overall rate d. Improvement 98. What ratio, expressed as a percentage,
is between 11 and 12? a. Mortgage constant b. Overall rate c. Vacancy d. Improvement 99. What ratio,
expressed as a percentage, is between 30 and 40? a. Operating expenses b. Overall rare c. Mortgage
constant d. Vacancy 100. What ratio, expressed as a percentage, is between 0 and 5? a. Vacancy b.
Operating expenses c. Overall rate d. Mortgage constant = END =