BASIC APPRAISAL PRINCIPLES
p p p
FINAL EXAM 400+ QUESTIONS W
p p p p
ITH VERIFIED DETAILED ANSWE
p p p
RS ALREADY GRADED A+
p p p
"Youppurchasedpaphousepforp$120,000,pthreepyearspago.pPropertypvaluespincreasedp3%pthepfirstpyear,p5%,pt
hepsecondpyear,pandp7%pthepthirdpyear.pHowpmuchpispyourphousepworthpnow?p-
pCORRECTpANSWER=>p$138,865"
"MarypJonesphaspappropertypwithpnoproadpfrontage.pShephaspanpaccessprightpofpwaypacrossptheppropertypofp
herpneighborpBobpSmithpforpingress,pegress,pandpregress.pWhophaspthepdominantptenementpinpthispsituatio
n?p-pCORRECTpANSWER=>pMarypJones"
"Whichpstatementpaboutpprice,pcost,pandpvaluepispTRUE?p-
pCORRECTpANSWER=>pPricepandpvaluepcanpbepthepsamepinpsomepsituations."
"Thepmedianppricepofphomespsoldpinpyourpcountypninepmonthspagopwasp$217,400.pPricesphavepbeenpincrea
singpatpthepratepofp8%pperpyear.pWhatpispthepmedianppricepofphomesptoday?p-
pCORRECTpANSWER=>p$230,444"
"Asppartpofpthepoverallprequirementpforpcontinuingpeducation,pcertifiedpandplicensedpappraiserspmustpcom
pletepthep7-HourpNationalpUSPAPpUpdatepCourseporpitspequivalentp________pcalendarpyear(s).p-
pCORRECTpANSWER=>peveryp2"
"ElectronicpDatapInterchangepforptransmittingpappraisalpreportspbecameppopularpinpthep-
pCORRECTpANSWER=>platep1990s"
"Whenpappraisingpanpincomepproducingpproperty,pyouphavepthepfollowingpGRMspindicatedpfrompcompara
blepsalesp(122,p159,p132,p126,p122,p173,p152,p126).pWhatpispthepmedianpofpthepGRMs?p-
pCORRECTpANSWER=>p129"
""Apdevelopmentprightpthatpcannotpbepusedpbyptheplandowner,porpthatpthepownerpchoosespnotptopuse,pbut
pcanpbepsoldptoplandownerspinpanotherplocation"parepcalledp_____________prights.p-
pCORRECTpANSWER=>ptransferablepdevelopment"
1p|pP a g e
,"ThepConductpSectionpofpthepETHICSpRULEpstates,pinppart,pthatpanpappraiserpmustpperformpassignmentspwi
thp-pCORRECTpANSWER=>pImpartiality,pobjectivity,pandpindependence"
"ThepfourpcomponentspofpthepAppraiserpQualificationpCriteriapare:p-
pCORRECTpANSWER=>pqualifyingpeducation,pexamination,pexperience,pcontinuingpeducation"
"Whichpofpthepbelowpispaprequirementpofpapvalidprealpestatepcontract?p-
pCORRECTpANSWER=>pallpofpthepabove"
"USPAPpdefinesp_________paspthepamountpasked,poffered,porppaidpforpapproperty.p-
pCORRECTpANSWER=>pprice"
""Thepactpofptransferringpanpinterestpinppropertyporpsomeprightp(suchpaspcontractpbenefits)ptopanother"pispt
hepdefinitionpofp-pCORRECTpANSWER=>passignment"
""Thepstudypofpthepcost-benefitprelationshippofpanpeconomicpendeavor"pispthepdefinitionpofp-
pCORRECTpANSWER=>pfeasibilitypanalysis"
"Yourpproperty,pwhichpconsistspofpaphouseponpaplot,pispvaluedpatp$186,000.pYoupwantptopinsurepitpforp80%pof
pvalue.pInsurancepwillpcostp$6.00pperpthousandpperpyear.pHowpmuchpwillpyourpinsurancepcostpperpmonth?p-
pCORRECTpANSWER=>p$74.40"
"Apclientpaskspanpappraiserptopomitpthepclient'spidentitypfrompthepappraisalpreport.pWhatpcanpthepappraiser
pdo?p-
pCORRECTpANSWER=>pomitpthepclient'spidentitypfrompthepreportpbutpidentifypthepclientpinpthepworkfile"
"ThepprimaryppurposepofpUSPAPpisptopprotectp-pCORRECTpANSWER=>ppublicptrust"
"Whichpispthepfullestpandpmostpcompleteptypepofpestate?p-pCORRECTpANSWER=>pfeepsimple"
""Apmortgagepinpwhichpthepinterestpratepmaypmovepupporpdown,pfollowingpapspecifiedpscheduleporpinpacco
rdancepwithpthepmovementspofpapstandardporpindexptopwhichpitpisptied"pispthepdefinitionpofpa(n)p_________
_____pmortgage.p-pCORRECTpANSWER=>padjustableprate"
"Transportationpwouldpbepanpexamplepofpa(n)p__________pforcepaffectingppropertypvalues.p-
pCORRECTpANSWER=>pgovernmental"
""Inpappraisal,pthepconceptpthatpaphigher-pricedppropertypwillpbepworthplesspinpaplower-
pricedpneighborhoodpthanpitpwouldpinpapneighborhoodpofpcomparablepproperties"pispthepdefinitionpofpthep
principlepofp-pCORRECTpANSWER=>pregression"
2p|pP a g e
,""Aprightporpinterestpinpproperty"pispa(n)p-pCORRECTpANSWER=>pestate"
""Apvaluepthatpcannotpbepimputedptopanyppartpofpthepphysicalpproperty,pe.g.,pthepexcesspvaluepattributablep
topapfavorablepleaseporpmortgage,pthepvaluepattributableptopgoodwill"pispthepdefinitionpofp____________pv
alue.p-pCORRECTpANSWER=>pintangible"
"Whatpispthepmedianpofpthesepnumbers:p19,p11,p64,p36,p81,p22,p35,p95?p-pCORRECTpANSWER=>p35.5"
"Thepgeneralprulepofpcontractingpwithpminorspispthatpapcontractpwithpapminorpisp-
pCORRECTpANSWER=>pvoidablepatpthepminor'spoption"
""Thepgeographicpregionpfrompwhichpapmajoritypofpdemandpcomespandpwhichpthepmajoritypofpthepcompeti
tionpisplocated"pispthepdefinitionpofp-pCORRECTpANSWER=>pmarketparea"
"Whenpestimatingpthepvaluepofpapfireplacepinpapsingle-
familyphome,pthepmostpimportantpprinciplepispthepprinciplepofp-pCORRECTpANSWER=>pcontribution"
"Normallypthepfirstpsteppinphighestpandpbestpusepanalysispisptopresearchpthepusespthatparep-
pCORRECTpANSWER=>plegallyppermissible"
"Thep_______pmaintainspapnationalpregistrypofpstatepcertifiedpandplicensedpappraiserspwhoparepeligibleptop
performpappraisalspinpfederallyprelatedptransactions.p-pCORRECTpANSWER=>pAppraisalpSubcommittee"
"Aplotpmeasuresp178pfeetpbyp464pfeet.pItpsoldpforp$80,000.pWhatpdidpitpsellpforpperpacre?pHINT:pRoundpthepa
creagepamountptoptwopdecimalpplaces.p-pCORRECTpANSWER=>p$42,105"
"Youpapplypforpapmortgagepandptheplenderpwillpallowpyouptopspendpupptop30%pofpyourpannualpincomepforph
ousingpcosts.pThesephousingpcostspwillpincludepyourpmortgage,ppropertyptaxes,pandpinsurance.pYourpincom
episp$1,635peveryptwopweeks.pIfpyoupapplypforptheploan,phowpmuchpcanpyourpmaximumpmonthlyppaymentp
be?p-pCORRECTpANSWER=>p$1,062.75"
"Youpboughtpappropertypforp$650,000,p2pyearspago.pValuespincreasedpinpthatpareapbyp8%pthepfirstpyearpandp
6%pthepsecondpyear.pHowpmuchpispyourppropertypworthptoday?p-pCORRECTpANSWER=>p$744,120"
""Thepsumpofpvaluespforpapvariablepinpapsampleporppopulationpdividedpbypthepnumberpofpitemspinpthepsamp
leporppopulation"pispthepdefinitionpofp-pCORRECTpANSWER=>pmean"
"Whichpofpthepfollowingpispapcharacteristicpofpanpeffectivepmarket?p-
pCORRECTpANSWER=>pallpofpthepabove"
3p|pP a g e
, "WhopispresponsiblepforpappointingpmembersptopthepASBpandpAQB?p-
pCORRECTpANSWER=>pthepBoardpofpTrustees"
"Thepfederalpfinancialpinstitutionspregulatorypagenciespdirectlypinvolvedpinpfairplendingpincludepallpofpthepfo
llowingpEXCEPTp-pCORRECTpANSWER=>pFreddiepMac"
""Theprightpheldpbyptheplesseeptopusepandpoccupyprealpestatepforpapstatedptermpandpunderpthepconditionsps
pecifiedpinptheplease"pispthepdefinitionpofp-pCORRECTpANSWER=>pleaseholdpestate"
"Modernpdefinitionspofpthepwordp"appraisal"phavepreplacedpthepwordp_______pwithp________.p-
pCORRECTpANSWER=>pestimate,popinion"
"Aprectangularppropertypmeasuresp320pfeetpbyp574.45pfeet,pandpitpsoldpforp$263,750.pHowpmuchpdidpitpsell
pforpperpacre?p-pCORRECTpANSWER=>p$62,500"
"Underpthepcurrentpqualifyingpeducationpcriteria,pthereparepcollege-
levelpcourseprequirementspforp__________pclassifications.p-
pCORRECTpANSWER=>pbothpCertifiedpResidentialpandpCertifiedpGeneral"
"Thepstrongestpformpofpdeedpispthep__________pdeed.p-pCORRECTpANSWER=>pwarranty"
""Thepratepatpwhichpvacantpspacepinpappropertyporpapgrouppofppropertiespforpsaleporpleasephaspbeenporpispex
pectedptopbepsuccessfullypsoldporpleasedpoverpapspecifiedpperiodpofptime"pispthepdefinitionpofpa(n)p_______
___prate.p-pCORRECTpANSWER=>pabsorption"
"Anpappraiserppayspapfeepforpthepprocurementpofpanpassignment.pWherepinpthepappraisalpreportpdoespthisp
paymentphaveptopbepdisclosed?p-
pCORRECTpANSWER=>pinpthepcertificationpandptransmittalpletterpwherepconclusionsparepstated"
"AllpofpthepfollowingpwouldptypicallypbepconsideredptopbeppersonalppropertypEXCEPTp-
pCORRECTpANSWER=>pwallptopwallpcarpeting"
"ThepManagementpSectionpofpthepETHICSpRULEpstates,pinppart,p"Anpappraiserpmustp__________pthatphepor
psheppaidpapfeeporpcommission,porpgavepapthingpofpvaluepinpconnectionpwithpthepprocurementpofpanpassign
ment."p-pCORRECTpANSWER=>pdisclose"
""Apgatheringpofppeoplepforpthepbuyingpandpsellingpofpthings"pispthepdefinitionpofp-
pCORRECTpANSWER=>pmarket"
"Whichpofpthepfollowingpwouldpbepprivateprestrictionsponppropertyprights?p-
pCORRECTpANSWER=>pdeedprestrictionpandpmechanic'splien"
4p|pP a g e
p p p
FINAL EXAM 400+ QUESTIONS W
p p p p
ITH VERIFIED DETAILED ANSWE
p p p
RS ALREADY GRADED A+
p p p
"Youppurchasedpaphousepforp$120,000,pthreepyearspago.pPropertypvaluespincreasedp3%pthepfirstpyear,p5%,pt
hepsecondpyear,pandp7%pthepthirdpyear.pHowpmuchpispyourphousepworthpnow?p-
pCORRECTpANSWER=>p$138,865"
"MarypJonesphaspappropertypwithpnoproadpfrontage.pShephaspanpaccessprightpofpwaypacrossptheppropertypofp
herpneighborpBobpSmithpforpingress,pegress,pandpregress.pWhophaspthepdominantptenementpinpthispsituatio
n?p-pCORRECTpANSWER=>pMarypJones"
"Whichpstatementpaboutpprice,pcost,pandpvaluepispTRUE?p-
pCORRECTpANSWER=>pPricepandpvaluepcanpbepthepsamepinpsomepsituations."
"Thepmedianppricepofphomespsoldpinpyourpcountypninepmonthspagopwasp$217,400.pPricesphavepbeenpincrea
singpatpthepratepofp8%pperpyear.pWhatpispthepmedianppricepofphomesptoday?p-
pCORRECTpANSWER=>p$230,444"
"Asppartpofpthepoverallprequirementpforpcontinuingpeducation,pcertifiedpandplicensedpappraiserspmustpcom
pletepthep7-HourpNationalpUSPAPpUpdatepCourseporpitspequivalentp________pcalendarpyear(s).p-
pCORRECTpANSWER=>peveryp2"
"ElectronicpDatapInterchangepforptransmittingpappraisalpreportspbecameppopularpinpthep-
pCORRECTpANSWER=>platep1990s"
"Whenpappraisingpanpincomepproducingpproperty,pyouphavepthepfollowingpGRMspindicatedpfrompcompara
blepsalesp(122,p159,p132,p126,p122,p173,p152,p126).pWhatpispthepmedianpofpthepGRMs?p-
pCORRECTpANSWER=>p129"
""Apdevelopmentprightpthatpcannotpbepusedpbyptheplandowner,porpthatpthepownerpchoosespnotptopuse,pbut
pcanpbepsoldptoplandownerspinpanotherplocation"parepcalledp_____________prights.p-
pCORRECTpANSWER=>ptransferablepdevelopment"
1p|pP a g e
,"ThepConductpSectionpofpthepETHICSpRULEpstates,pinppart,pthatpanpappraiserpmustpperformpassignmentspwi
thp-pCORRECTpANSWER=>pImpartiality,pobjectivity,pandpindependence"
"ThepfourpcomponentspofpthepAppraiserpQualificationpCriteriapare:p-
pCORRECTpANSWER=>pqualifyingpeducation,pexamination,pexperience,pcontinuingpeducation"
"Whichpofpthepbelowpispaprequirementpofpapvalidprealpestatepcontract?p-
pCORRECTpANSWER=>pallpofpthepabove"
"USPAPpdefinesp_________paspthepamountpasked,poffered,porppaidpforpapproperty.p-
pCORRECTpANSWER=>pprice"
""Thepactpofptransferringpanpinterestpinppropertyporpsomeprightp(suchpaspcontractpbenefits)ptopanother"pispt
hepdefinitionpofp-pCORRECTpANSWER=>passignment"
""Thepstudypofpthepcost-benefitprelationshippofpanpeconomicpendeavor"pispthepdefinitionpofp-
pCORRECTpANSWER=>pfeasibilitypanalysis"
"Yourpproperty,pwhichpconsistspofpaphouseponpaplot,pispvaluedpatp$186,000.pYoupwantptopinsurepitpforp80%pof
pvalue.pInsurancepwillpcostp$6.00pperpthousandpperpyear.pHowpmuchpwillpyourpinsurancepcostpperpmonth?p-
pCORRECTpANSWER=>p$74.40"
"Apclientpaskspanpappraiserptopomitpthepclient'spidentitypfrompthepappraisalpreport.pWhatpcanpthepappraiser
pdo?p-
pCORRECTpANSWER=>pomitpthepclient'spidentitypfrompthepreportpbutpidentifypthepclientpinpthepworkfile"
"ThepprimaryppurposepofpUSPAPpisptopprotectp-pCORRECTpANSWER=>ppublicptrust"
"Whichpispthepfullestpandpmostpcompleteptypepofpestate?p-pCORRECTpANSWER=>pfeepsimple"
""Apmortgagepinpwhichpthepinterestpratepmaypmovepupporpdown,pfollowingpapspecifiedpscheduleporpinpacco
rdancepwithpthepmovementspofpapstandardporpindexptopwhichpitpisptied"pispthepdefinitionpofpa(n)p_________
_____pmortgage.p-pCORRECTpANSWER=>padjustableprate"
"Transportationpwouldpbepanpexamplepofpa(n)p__________pforcepaffectingppropertypvalues.p-
pCORRECTpANSWER=>pgovernmental"
""Inpappraisal,pthepconceptpthatpaphigher-pricedppropertypwillpbepworthplesspinpaplower-
pricedpneighborhoodpthanpitpwouldpinpapneighborhoodpofpcomparablepproperties"pispthepdefinitionpofpthep
principlepofp-pCORRECTpANSWER=>pregression"
2p|pP a g e
,""Aprightporpinterestpinpproperty"pispa(n)p-pCORRECTpANSWER=>pestate"
""Apvaluepthatpcannotpbepimputedptopanyppartpofpthepphysicalpproperty,pe.g.,pthepexcesspvaluepattributablep
topapfavorablepleaseporpmortgage,pthepvaluepattributableptopgoodwill"pispthepdefinitionpofp____________pv
alue.p-pCORRECTpANSWER=>pintangible"
"Whatpispthepmedianpofpthesepnumbers:p19,p11,p64,p36,p81,p22,p35,p95?p-pCORRECTpANSWER=>p35.5"
"Thepgeneralprulepofpcontractingpwithpminorspispthatpapcontractpwithpapminorpisp-
pCORRECTpANSWER=>pvoidablepatpthepminor'spoption"
""Thepgeographicpregionpfrompwhichpapmajoritypofpdemandpcomespandpwhichpthepmajoritypofpthepcompeti
tionpisplocated"pispthepdefinitionpofp-pCORRECTpANSWER=>pmarketparea"
"Whenpestimatingpthepvaluepofpapfireplacepinpapsingle-
familyphome,pthepmostpimportantpprinciplepispthepprinciplepofp-pCORRECTpANSWER=>pcontribution"
"Normallypthepfirstpsteppinphighestpandpbestpusepanalysispisptopresearchpthepusespthatparep-
pCORRECTpANSWER=>plegallyppermissible"
"Thep_______pmaintainspapnationalpregistrypofpstatepcertifiedpandplicensedpappraiserspwhoparepeligibleptop
performpappraisalspinpfederallyprelatedptransactions.p-pCORRECTpANSWER=>pAppraisalpSubcommittee"
"Aplotpmeasuresp178pfeetpbyp464pfeet.pItpsoldpforp$80,000.pWhatpdidpitpsellpforpperpacre?pHINT:pRoundpthepa
creagepamountptoptwopdecimalpplaces.p-pCORRECTpANSWER=>p$42,105"
"Youpapplypforpapmortgagepandptheplenderpwillpallowpyouptopspendpupptop30%pofpyourpannualpincomepforph
ousingpcosts.pThesephousingpcostspwillpincludepyourpmortgage,ppropertyptaxes,pandpinsurance.pYourpincom
episp$1,635peveryptwopweeks.pIfpyoupapplypforptheploan,phowpmuchpcanpyourpmaximumpmonthlyppaymentp
be?p-pCORRECTpANSWER=>p$1,062.75"
"Youpboughtpappropertypforp$650,000,p2pyearspago.pValuespincreasedpinpthatpareapbyp8%pthepfirstpyearpandp
6%pthepsecondpyear.pHowpmuchpispyourppropertypworthptoday?p-pCORRECTpANSWER=>p$744,120"
""Thepsumpofpvaluespforpapvariablepinpapsampleporppopulationpdividedpbypthepnumberpofpitemspinpthepsamp
leporppopulation"pispthepdefinitionpofp-pCORRECTpANSWER=>pmean"
"Whichpofpthepfollowingpispapcharacteristicpofpanpeffectivepmarket?p-
pCORRECTpANSWER=>pallpofpthepabove"
3p|pP a g e
, "WhopispresponsiblepforpappointingpmembersptopthepASBpandpAQB?p-
pCORRECTpANSWER=>pthepBoardpofpTrustees"
"Thepfederalpfinancialpinstitutionspregulatorypagenciespdirectlypinvolvedpinpfairplendingpincludepallpofpthepfo
llowingpEXCEPTp-pCORRECTpANSWER=>pFreddiepMac"
""Theprightpheldpbyptheplesseeptopusepandpoccupyprealpestatepforpapstatedptermpandpunderpthepconditionsps
pecifiedpinptheplease"pispthepdefinitionpofp-pCORRECTpANSWER=>pleaseholdpestate"
"Modernpdefinitionspofpthepwordp"appraisal"phavepreplacedpthepwordp_______pwithp________.p-
pCORRECTpANSWER=>pestimate,popinion"
"Aprectangularppropertypmeasuresp320pfeetpbyp574.45pfeet,pandpitpsoldpforp$263,750.pHowpmuchpdidpitpsell
pforpperpacre?p-pCORRECTpANSWER=>p$62,500"
"Underpthepcurrentpqualifyingpeducationpcriteria,pthereparepcollege-
levelpcourseprequirementspforp__________pclassifications.p-
pCORRECTpANSWER=>pbothpCertifiedpResidentialpandpCertifiedpGeneral"
"Thepstrongestpformpofpdeedpispthep__________pdeed.p-pCORRECTpANSWER=>pwarranty"
""Thepratepatpwhichpvacantpspacepinpappropertyporpapgrouppofppropertiespforpsaleporpleasephaspbeenporpispex
pectedptopbepsuccessfullypsoldporpleasedpoverpapspecifiedpperiodpofptime"pispthepdefinitionpofpa(n)p_______
___prate.p-pCORRECTpANSWER=>pabsorption"
"Anpappraiserppayspapfeepforpthepprocurementpofpanpassignment.pWherepinpthepappraisalpreportpdoespthisp
paymentphaveptopbepdisclosed?p-
pCORRECTpANSWER=>pinpthepcertificationpandptransmittalpletterpwherepconclusionsparepstated"
"AllpofpthepfollowingpwouldptypicallypbepconsideredptopbeppersonalppropertypEXCEPTp-
pCORRECTpANSWER=>pwallptopwallpcarpeting"
"ThepManagementpSectionpofpthepETHICSpRULEpstates,pinppart,p"Anpappraiserpmustp__________pthatphepor
psheppaidpapfeeporpcommission,porpgavepapthingpofpvaluepinpconnectionpwithpthepprocurementpofpanpassign
ment."p-pCORRECTpANSWER=>pdisclose"
""Apgatheringpofppeoplepforpthepbuyingpandpsellingpofpthings"pispthepdefinitionpofp-
pCORRECTpANSWER=>pmarket"
"Whichpofpthepfollowingpwouldpbepprivateprestrictionsponppropertyprights?p-
pCORRECTpANSWER=>pdeedprestrictionpandpmechanic'splien"
4p|pP a g e
