Barney Fletcher Cram Exam 7
Actual Exam Questions with Verified Answers /Latest 2025
1. Who determines the value for buyers and sellers?
A. an appraiser
B. the lending institution
C. buyers and sellers
D. the surveyor:
C. buyers and sellers
2. Which of the following is not an example of fair market value?
A. no undue pressure
B. knowledgeable buyers and sellers
C. arm’s length transaction
D. the appraisal:
D. the appraisal
3. Which of the following is not an example of the principles of value?
A. substitution
B. narrative
C. highest and best use
D. conformity
B. narrative
4. The CMA is based on the principle of:
A. substitution
B. competition
C. highest and best use
D. anticipation
A. substitution
5. Bob goes out to appraise a property. It is the first residential home built in the new
subdivision. What method should Bob use to estimate the value?
A. lot and block method
B. market data method
C. summation method (cost approach)
D. income method
C. summation method (cost approach)
6. Which of the following is not a characteristic of value?
A. external
B. demand
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, C. utility
D. scarcity
A. external
7. Which of the following is not a type of depreciation?
A. capitalization
B. external
C. physical
D. functional
A. capitalization
8. How is the estimate of value calculated using the capitalization method?
A. NOI x Cap rate
B. cost - depreciation + land value
C. NOI x GRM
D. NOI divided by Cap rate
D. NOI divided by Cap rate
9. An agent is ready to help a client make an offer on a home. Which of the following best
describes what the agent should do to help advise her client?
A. call a home inspector
B. market data approach
C. call a loan officer
D. CMA (comparative market analysis)
D. CMA (comparative market analysis)
10. While appraising a property, the appraiser notices that the subject property had a
basement that the comparable did not have. The value of a basement for that area and style
home was $20,000. What should the appraiser do?
A. add $20,000 to the subject property because it's better
B. subtract the $20,000 from the comparable property because it's worse
C. add the $20,000 to the comparable property because it's worse
D. subtract $20,000 from the subject property because it's better
C. add the $20,000 to the comparable property because it's worse
11. An agent was getting ready to go out and list three properties that were adjacent to each
other. The agent wanted to maximize the values of each property by achieving pottage
increment. What should the agent do?
A. value appreciation
B. value average each property
C. an assemblage
D. a weighted average
2/5
Actual Exam Questions with Verified Answers /Latest 2025
1. Who determines the value for buyers and sellers?
A. an appraiser
B. the lending institution
C. buyers and sellers
D. the surveyor:
C. buyers and sellers
2. Which of the following is not an example of fair market value?
A. no undue pressure
B. knowledgeable buyers and sellers
C. arm’s length transaction
D. the appraisal:
D. the appraisal
3. Which of the following is not an example of the principles of value?
A. substitution
B. narrative
C. highest and best use
D. conformity
B. narrative
4. The CMA is based on the principle of:
A. substitution
B. competition
C. highest and best use
D. anticipation
A. substitution
5. Bob goes out to appraise a property. It is the first residential home built in the new
subdivision. What method should Bob use to estimate the value?
A. lot and block method
B. market data method
C. summation method (cost approach)
D. income method
C. summation method (cost approach)
6. Which of the following is not a characteristic of value?
A. external
B. demand
1/5
, C. utility
D. scarcity
A. external
7. Which of the following is not a type of depreciation?
A. capitalization
B. external
C. physical
D. functional
A. capitalization
8. How is the estimate of value calculated using the capitalization method?
A. NOI x Cap rate
B. cost - depreciation + land value
C. NOI x GRM
D. NOI divided by Cap rate
D. NOI divided by Cap rate
9. An agent is ready to help a client make an offer on a home. Which of the following best
describes what the agent should do to help advise her client?
A. call a home inspector
B. market data approach
C. call a loan officer
D. CMA (comparative market analysis)
D. CMA (comparative market analysis)
10. While appraising a property, the appraiser notices that the subject property had a
basement that the comparable did not have. The value of a basement for that area and style
home was $20,000. What should the appraiser do?
A. add $20,000 to the subject property because it's better
B. subtract the $20,000 from the comparable property because it's worse
C. add the $20,000 to the comparable property because it's worse
D. subtract $20,000 from the subject property because it's better
C. add the $20,000 to the comparable property because it's worse
11. An agent was getting ready to go out and list three properties that were adjacent to each
other. The agent wanted to maximize the values of each property by achieving pottage
increment. What should the agent do?
A. value appreciation
B. value average each property
C. an assemblage
D. a weighted average
2/5
