101- FUNDAMENTALS OF REAL
PROPERTY APPRAISAL EXAM
QUESTIONS & ACTUAL CORRECT
ANSWERS
Responsibilities of the Assessor - Correct Answer ✔✔ List, Value and Discover
Periodic on-site inspections - Correct Answer ✔✔ One of the steps an assessor must
take in the discovery of property
ad valorem - Correct Answer ✔✔ according to value
Budget - Correct Answer ✔✔ divided by the assessed value equals the tax rate.
Effective tax rate - Correct Answer ✔✔ Assessment level times the tax rate
Real estate - Correct Answer ✔✔ the physical land & everything permanently attached
to it.
Governmental Restrictions - Correct Answer ✔✔ Police Power
Eminent Domain
Taxation
Escheat
Basic rights associated with the ownership of property - Correct Answer ✔✔ Sell
Lease
Use
Give away
Exit or leave
Refuse to do any of the above
Supply & demand - Correct Answer ✔✔ In order for a property to have value, it must
have utility, scarcity, desirability, & effective purchasing power. The economic forces
that determine scarcity are
Equilibrium - Correct Answer ✔✔ the point at which the forces of supply & demand
meet- the point of balance
Fee simple - Correct Answer ✔✔ interest is ownership of all the rights in a property,
except those reserved by the government & with no private encumbrances.
PROPERTY APPRAISAL EXAM
QUESTIONS & ACTUAL CORRECT
ANSWERS
Responsibilities of the Assessor - Correct Answer ✔✔ List, Value and Discover
Periodic on-site inspections - Correct Answer ✔✔ One of the steps an assessor must
take in the discovery of property
ad valorem - Correct Answer ✔✔ according to value
Budget - Correct Answer ✔✔ divided by the assessed value equals the tax rate.
Effective tax rate - Correct Answer ✔✔ Assessment level times the tax rate
Real estate - Correct Answer ✔✔ the physical land & everything permanently attached
to it.
Governmental Restrictions - Correct Answer ✔✔ Police Power
Eminent Domain
Taxation
Escheat
Basic rights associated with the ownership of property - Correct Answer ✔✔ Sell
Lease
Use
Give away
Exit or leave
Refuse to do any of the above
Supply & demand - Correct Answer ✔✔ In order for a property to have value, it must
have utility, scarcity, desirability, & effective purchasing power. The economic forces
that determine scarcity are
Equilibrium - Correct Answer ✔✔ the point at which the forces of supply & demand
meet- the point of balance
Fee simple - Correct Answer ✔✔ interest is ownership of all the rights in a property,
except those reserved by the government & with no private encumbrances.
