CPE EXAM REVIEW QUESTIONS & ANSWERS
RATED 100% CORRECT!!
Physical Deterioration
Curable = cost to cure is economically prudent because cost is equal to or less than the increase in
value or utility AKA Deferred maintenance.
Incurable = not economically justified to correct.
What are the units of comparison most likely used for an Industrial Property?
SqFt, Cubic FT, GIM
Which principle is closest related to the Adjustment Technique?
The Principle of Contribution
Which Legal Description doesn't define Real Property?
Quantity Survey (Engineer Breakdown)
What is the term for when combining 2 or more parcels, the resulting combined parcel is worth more
than the sum of the individual parcels?
Plottage
Which Legal Description is primarily used west of the Ohio River?
Rectangular Survey
What is an arrangement of numbers sorted from smallest to largest?
Array
What is the surface of the earth, including land and water and everything under the surface including
natural resources in their natural state? It also includes the air above to the height of the airspace.
Land
What is the present worth of future benefits arising from the ownership of real property?
Value
What is the critical order for finding the highest and best use?
Is it Legal?
Is it Physically possible?
Is it Financial feasible?
Does it maximize profit?
What is the actual amount paid, or to be paid, for a property in a particular transaction called?
Selling(Market) Price
What are the units of comparison most used for Land?
Front feet, Sq Ft, Acres, Site/Lot, Buildable units
,Which principle is closest related to the Sale Comparison Approach?
The Principle of Substitution
What are the 2 ways of collecting data?
Primary and secondary
What is land called that has been developed to the point of being ready for a structure to be built on
it?
Site
Which 2 approaches are used for valuing land?
Income and Sale Comparison
What is a tract of land called that is divided into smaller lots and sold as single residences?
Subdivision
What is the critical order for adding adjustments to comparisons?
Financial, Condition, Time, Location, Physical characteristics
What is an appraisal?
An opinion of value that can be supported
How do you reconcile the adjusted values of comparisons?
Review each sale and judge its comparability to the subject.
Put greatest reliance of comp with the least amount of adjustments.
What is the process of combining 2 or more parcels into 1 or more ownership or use?
Assemblege
What is a geographic area defined for some useful purpose, such as to ensure that properties are
homogenous and share important characteristics?
Neighborhood
Who is the one that holds the property title and conveys rights under a lease?
Lessor (Landlord)
If a property is inferior to the subject, does the adjustment increase or decrease the value of the
comparison?
Increase
What are the 4 disciplines of land?
Geography, Economic, Law and Social
, What is the price for which something is offered for sale, usually is the upper limit of value?
Asking price
Which type of legal description is this?
N 45°, 30 minutes 22 seconds E
Metes and Bounds
What is the difference between the largest number and the smallest number called?
Range
What are the 2 categories of property data?
General and Specific
What are reliable data sources?
Licensed professionals:
Assessors
Engineers
Real estate brokers
Which principle is closely related to subdivisions?
The Principle of Conformity
What is it called when combining 2 or more parcels, the resulting value is less than the sum of the
individual properties?
Negative Plottage
What value do assessors look for?
Market Value
Which technique is used when valuing land by the income approach?
Land Residual Technique
Who has the right to occupy or use a property under a lease agreement?
Lessee (tenant)
Which process uses data from 2 sales, where everything is identical except the 1 item being
compared?
Paired(Matched) Sales
Why do appraisers analyze neighborhoods?
To evaluate factors:
Physical
Economical
Governmental
Social
RATED 100% CORRECT!!
Physical Deterioration
Curable = cost to cure is economically prudent because cost is equal to or less than the increase in
value or utility AKA Deferred maintenance.
Incurable = not economically justified to correct.
What are the units of comparison most likely used for an Industrial Property?
SqFt, Cubic FT, GIM
Which principle is closest related to the Adjustment Technique?
The Principle of Contribution
Which Legal Description doesn't define Real Property?
Quantity Survey (Engineer Breakdown)
What is the term for when combining 2 or more parcels, the resulting combined parcel is worth more
than the sum of the individual parcels?
Plottage
Which Legal Description is primarily used west of the Ohio River?
Rectangular Survey
What is an arrangement of numbers sorted from smallest to largest?
Array
What is the surface of the earth, including land and water and everything under the surface including
natural resources in their natural state? It also includes the air above to the height of the airspace.
Land
What is the present worth of future benefits arising from the ownership of real property?
Value
What is the critical order for finding the highest and best use?
Is it Legal?
Is it Physically possible?
Is it Financial feasible?
Does it maximize profit?
What is the actual amount paid, or to be paid, for a property in a particular transaction called?
Selling(Market) Price
What are the units of comparison most used for Land?
Front feet, Sq Ft, Acres, Site/Lot, Buildable units
,Which principle is closest related to the Sale Comparison Approach?
The Principle of Substitution
What are the 2 ways of collecting data?
Primary and secondary
What is land called that has been developed to the point of being ready for a structure to be built on
it?
Site
Which 2 approaches are used for valuing land?
Income and Sale Comparison
What is a tract of land called that is divided into smaller lots and sold as single residences?
Subdivision
What is the critical order for adding adjustments to comparisons?
Financial, Condition, Time, Location, Physical characteristics
What is an appraisal?
An opinion of value that can be supported
How do you reconcile the adjusted values of comparisons?
Review each sale and judge its comparability to the subject.
Put greatest reliance of comp with the least amount of adjustments.
What is the process of combining 2 or more parcels into 1 or more ownership or use?
Assemblege
What is a geographic area defined for some useful purpose, such as to ensure that properties are
homogenous and share important characteristics?
Neighborhood
Who is the one that holds the property title and conveys rights under a lease?
Lessor (Landlord)
If a property is inferior to the subject, does the adjustment increase or decrease the value of the
comparison?
Increase
What are the 4 disciplines of land?
Geography, Economic, Law and Social
, What is the price for which something is offered for sale, usually is the upper limit of value?
Asking price
Which type of legal description is this?
N 45°, 30 minutes 22 seconds E
Metes and Bounds
What is the difference between the largest number and the smallest number called?
Range
What are the 2 categories of property data?
General and Specific
What are reliable data sources?
Licensed professionals:
Assessors
Engineers
Real estate brokers
Which principle is closely related to subdivisions?
The Principle of Conformity
What is it called when combining 2 or more parcels, the resulting value is less than the sum of the
individual properties?
Negative Plottage
What value do assessors look for?
Market Value
Which technique is used when valuing land by the income approach?
Land Residual Technique
Who has the right to occupy or use a property under a lease agreement?
Lessee (tenant)
Which process uses data from 2 sales, where everything is identical except the 1 item being
compared?
Paired(Matched) Sales
Why do appraisers analyze neighborhoods?
To evaluate factors:
Physical
Economical
Governmental
Social
