BASIC APPRAISAL PROCEDURES COMPLETE
FINAL EXAM COMPREHENSIVE QUESTIONS WITH
VERIFIED ANSWERS(ALREADY PASSED)
1.A house is rented for $1,050 per month, but lacks air conditioning. Comparable
houses with air conditioning, rent for $1,100 per month. The appropriate gross
rent multiplier is 75. By the capitalized value method, how much is the
depreciation attributable to the lack of air conditioning?
$3,750
Capitalization of Income Loss. $1,100 - $1,050 = $50 rent loss. $50 X 75 = $3,750.
2."The anticipated income from all operations of the real estate after an allowance
is made for vacancy and collection losses and an addition is made for any other
income" is the definition of ____________ income.
Effective gross income
3.Soil maps produced by the Natural Resources Conservation Service are based
on
Aerial maps
4.Drilled wells need to use __________ until the drilling enters ___________.
Casing, bedrock
5.A property has a cost new of $350,000. It has an effective age of 20 years and a
total expected economic life of 65 years. There are curable items totaling $45,000.
If they are cured, it will reduce the effective age to 15 years. What is the value of
the improvements on a modified age-life basis, before including the site value?
$234,545
$350,000 - $45,000 = $305,000.
15 ÷ 65 = .231 or 23.1%. $305,000 X .231 = $70,455.
$305,000 - $70,455 = $234,545.
6.Separate site valuations would likely be required in which of the following
situations:
cost approach
condemnation appraisals
highest and best use analysis
any of the above
any of the above
, 7.Which type of valuation analysis would typically NOT include a separate site
valuation?
gross rent multiplier
cost approach
highest and best use analysis
taxes and assessment
gross rent multiplier
8.Which of the stages in the life cycle of a market area does not always occur?
growth
stability
decline
revitalization
Revitalization
9.A _______________ home has a permanent steel chassis, wheels and axles.
Manufactured
10.An expansion tank is part of a ___________ heating system.
Hot water
11.The "summation approach" is another name for the _______________
approach.
Cost
12."Absolute ownership unencumbered by any other interest or estate, subject
only to the limitations imposed by the governmental powers of taxation, eminent
domain, police power, and escheat" is the definition of
fee simple estate
13.The most common brownfield contaminant is
Petroleum
14."The right held by the lessee to use and occupy real estate for a stated term
and under the conditions specified in the lease" is the definition of
_______________.
Leasehold interest
15.The first step in the valuation process is
Define the problem
16.A property contains 2.4 acres and is worth: A. $155,000 as single home site B.
$85,000 per unit as a site for a duplex and C. $60,000 per acre as a retail site. All
uses are physically possible, economically feasible and legally permitted. Which
is the highest and best use?
FINAL EXAM COMPREHENSIVE QUESTIONS WITH
VERIFIED ANSWERS(ALREADY PASSED)
1.A house is rented for $1,050 per month, but lacks air conditioning. Comparable
houses with air conditioning, rent for $1,100 per month. The appropriate gross
rent multiplier is 75. By the capitalized value method, how much is the
depreciation attributable to the lack of air conditioning?
$3,750
Capitalization of Income Loss. $1,100 - $1,050 = $50 rent loss. $50 X 75 = $3,750.
2."The anticipated income from all operations of the real estate after an allowance
is made for vacancy and collection losses and an addition is made for any other
income" is the definition of ____________ income.
Effective gross income
3.Soil maps produced by the Natural Resources Conservation Service are based
on
Aerial maps
4.Drilled wells need to use __________ until the drilling enters ___________.
Casing, bedrock
5.A property has a cost new of $350,000. It has an effective age of 20 years and a
total expected economic life of 65 years. There are curable items totaling $45,000.
If they are cured, it will reduce the effective age to 15 years. What is the value of
the improvements on a modified age-life basis, before including the site value?
$234,545
$350,000 - $45,000 = $305,000.
15 ÷ 65 = .231 or 23.1%. $305,000 X .231 = $70,455.
$305,000 - $70,455 = $234,545.
6.Separate site valuations would likely be required in which of the following
situations:
cost approach
condemnation appraisals
highest and best use analysis
any of the above
any of the above
, 7.Which type of valuation analysis would typically NOT include a separate site
valuation?
gross rent multiplier
cost approach
highest and best use analysis
taxes and assessment
gross rent multiplier
8.Which of the stages in the life cycle of a market area does not always occur?
growth
stability
decline
revitalization
Revitalization
9.A _______________ home has a permanent steel chassis, wheels and axles.
Manufactured
10.An expansion tank is part of a ___________ heating system.
Hot water
11.The "summation approach" is another name for the _______________
approach.
Cost
12."Absolute ownership unencumbered by any other interest or estate, subject
only to the limitations imposed by the governmental powers of taxation, eminent
domain, police power, and escheat" is the definition of
fee simple estate
13.The most common brownfield contaminant is
Petroleum
14."The right held by the lessee to use and occupy real estate for a stated term
and under the conditions specified in the lease" is the definition of
_______________.
Leasehold interest
15.The first step in the valuation process is
Define the problem
16.A property contains 2.4 acres and is worth: A. $155,000 as single home site B.
$85,000 per unit as a site for a duplex and C. $60,000 per acre as a retail site. All
uses are physically possible, economically feasible and legally permitted. Which
is the highest and best use?
