Name: Score:
37 Multiple choice questions
Term 1 of 37
The period of time over which an improvement to the property will contribute to its value is
known as its:
amortized life.
chronological life.
actual life.
economic life.
Term 2 of 37
In the income approach, which of the following is NOT considered when calculating the net
operating income?
Real estate taxes
Management fees
Debt service
Utilities
Term 3 of 37
To find the value of a property using the income approach to value, if the net operating income
and the capitalization rate were known, the appraiser would:
multiply the net operating income by the capitalization rate.
multiply the effective gross income by the capitalization rate.
divide the net operating income by the capitalization rate.
divide the capitalization rate by the net operating income
, Term 4 of 37
When appraising a commercial property, the appraiser is most concerned with the:
accrued depreciation on the property.
income generated by the property.
sales prices of comparable properties.
total debt service on the property.
Term 5 of 37
An appraiser has been employed to estimate the market value of a parcel of vacant land. The
resulting appraisal report would include reference to all of the following EXCEPT:
the highest and best use of the parcel.
the listed price of the parcel.
the most probable price the parcel will bring.
the physical dimensions of the parcel.
Term 6 of 37
The income approach as used by an appraiser makes use of which of the following?
Equalization
Depreciation
Appreciation
Capitalization
37 Multiple choice questions
Term 1 of 37
The period of time over which an improvement to the property will contribute to its value is
known as its:
amortized life.
chronological life.
actual life.
economic life.
Term 2 of 37
In the income approach, which of the following is NOT considered when calculating the net
operating income?
Real estate taxes
Management fees
Debt service
Utilities
Term 3 of 37
To find the value of a property using the income approach to value, if the net operating income
and the capitalization rate were known, the appraiser would:
multiply the net operating income by the capitalization rate.
multiply the effective gross income by the capitalization rate.
divide the net operating income by the capitalization rate.
divide the capitalization rate by the net operating income
, Term 4 of 37
When appraising a commercial property, the appraiser is most concerned with the:
accrued depreciation on the property.
income generated by the property.
sales prices of comparable properties.
total debt service on the property.
Term 5 of 37
An appraiser has been employed to estimate the market value of a parcel of vacant land. The
resulting appraisal report would include reference to all of the following EXCEPT:
the highest and best use of the parcel.
the listed price of the parcel.
the most probable price the parcel will bring.
the physical dimensions of the parcel.
Term 6 of 37
The income approach as used by an appraiser makes use of which of the following?
Equalization
Depreciation
Appreciation
Capitalization
