PART 1(5 POINTS)

Choose the best answer for each question. Each question is worth 0.2 points.
1. Actual Furvival life of the building before it collapses is called the
C) PHYSICAL LIFE
2. Nancy's house is the most dilapidated home in her neighborhood. However, her property has
been valued higher than she expected. What principle of valuation is likely at play?
A) PRINCIPLE OF HIGHEST AND BEST USE
3. What is the property being appraised known as in the process of appraising?
D) SUBJECT PROPET
4. Which of the following is not normally included as one of the advantages of real estate as an
investment?
A) LIQUIDITY
5. Which the following method is used to estimate the market value of the asset based on the
price at which similar assets have been sold in the market?
D) MARKET METHOD
6. ……. refers to the loss in value within a structure due to changes in tasies, preferences, and
technical innovations
D) FUNCTIONAL OBSOLESCENCE
7.......represent an arm's length transaction and must be included from consideration in an
appraisal?
A) A HOME THAT SOLD SIX MONTHS AGO, BUT IS OTHERWISE SIMILAR TO
THE HOME BEING APPRAISED
8. A valuer is valuating property using the comparative method. Which of the following
characteristics of comparable properties for use?
D) ALL THE ABOVE
9. Two types of value that are often contrasted are subjective value and:
C) OBJECTIVE VALUE
10. Which of the following would be considered a design deficiency newer, hi-end construction?
D) THERE ARE NO COMFORTABLE AREA IN THE KITCHEN WHERE THE
FAMILY CAN EAT
11. The proposed development of Metrorail station in the city creates an increase in real estate
demand in the surrounding area. According to the principle of Demand, Supply, and Desire:
B) THE HOME VALUES AND RENTS WILL GO UP.
12. Before making a valuation report, a valuer should:
A) VISIT THE PROPERTY TO OBSERVE ITS FEATURES AND QUALITY
13. The best indication of a property's value comes from:
C) RECENTLY SOLD PROPERTIES
14. Under rent capitalization method, the value of the property incresses with
C) LOWER CAPITALIZATION RATE
15. "not coercive manner" is meaning:
B) WITHOUT COMPULSION
16. "Arm's length transaction" is meaning
B) OBJECTIVE TRANSACTION
17. In the cost method, what adjustments is typically made to the historical cost of the asset?
C) ADJUSTMENTS FOR FUNCTIONAL OBSOLESCENCE
18. How is the income approach applied to valuing a fleet of delivery trucks?
B) ESTIMATING POTENTIAL INCOME OVER USEFUL LIFE
19. What is the best way to estimate the value of a house to sell?
B) COMPARING THE PROPERTY WITH SIMILAR HOME THAT HAVE SOLD
RECENTLY
20. Technological assets become obsolete so fast that their…………………… is often shortened.
A) ECONOMIC LIFE
21. When comparing with sales of similar properties, valier typically make names sens to the
comparables' prices. This is because
C) NO TWO PROPERTIES ARE EXACTLY ALIKE
22. Fair market value is the amount at which property would change hands between a willing
seller and a willing buyer when neither is acting under…………. and when both have reasonable
knowledge of the relevant facts.
B) COMPULSION
23. When using the income method for valuation, what aspect of asset is primarily focus?
A) FUTURE POTENTIAL INCOME
24. Depreciated Replacement Cost is:
C) USUALLY SMALLER THAN THE REPRODUCTION COST
25. The value at the end of the utility period without being dismantled is termed as:
C) SALVAGE VALUE
PART 1(5 POINTS)
Choose the best answer for each question. Each question is worth 0.2 points.
1. Actual Furvival life of the building before it collapses is called the
C) PHYSICAL LIFE
2. Nancy's house is the most dilapidated home in her neighborhood. However, her property has
been valued higher than she expected. What principle of valuation is likely at play?
A) PRINCIPLE OF HIGHEST AND BEST USE
3. What is the property being appraised known as in the process of appraising?
D) SUBJECT PROPET
4. Which of the following is not normally included as one of the advantages of real estate as an
investment?
A) LIQUIDITY
5. Which the following method is used to estimate the market value of the asset based on the
price at which similar assets have been sold in the market?
D) MARKET METHOD
6. ……. refers to the loss in value within a structure due to changes in tasies, preferences, and
technical innovations
D) FUNCTIONAL OBSOLESCENCE
7.......represent an arm's length transaction and must be included from consideration in an
appraisal?
A) A HOME THAT SOLD SIX MONTHS AGO, BUT IS OTHERWISE SIMILAR TO
THE HOME BEING APPRAISED
8. A valuer is valuating property using the comparative method. Which of the following
characteristics of comparable properties for use?
D) ALL THE ABOVE
9. Two types of value that are often contrasted are subjective value and:
C) OBJECTIVE VALUE
10. Which of the following would be considered a design deficiency newer, hi-end construction?
D) THERE ARE NO COMFORTABLE AREA IN THE KITCHEN WHERE THE
FAMILY CAN EAT
11. The proposed development of Metrorail station in the city creates an increase in real estate
demand in the surrounding area. According to the principle of Demand, Supply, and Desire:
B) THE HOME VALUES AND RENTS WILL GO UP.
12. Before making a valuation report, a valuer should:
A) VISIT THE PROPERTY TO OBSERVE ITS FEATURES AND QUALITY
13. The best indication of a property's value comes from:
C) RECENTLY SOLD PROPERTIES
14. Under rent capitalization method, the value of the property incresses with
C) LOWER CAPITALIZATION RATE
15. "not coercive manner" is meaning:
B) WITHOUT COMPULSION
16. "Arm's length transaction" is meaning
B) OBJECTIVE TRANSACTION
17. In the cost method, what adjustments is typically made to the historical cost of the asset?
C) ADJUSTMENTS FOR FUNCTIONAL OBSOLESCENCE
18. How is the income approach applied to valuing a fleet of delivery trucks?
B) ESTIMATING POTENTIAL INCOME OVER USEFUL LIFE
19. What is the best way to estimate the value of a house to sell?
B) COMPARING THE PROPERTY WITH SIMILAR HOME THAT HAVE SOLD
RECENTLY
20. Technological assets become obsolete so fast that their…………………… is often shortened.
A) ECONOMIC LIFE
21. When comparing with sales of similar properties, valier typically make names sens to the
comparables' prices. This is because
C) NO TWO PROPERTIES ARE EXACTLY ALIKE
22. Fair market value is the amount at which property would change hands between a willing
seller and a willing buyer when neither is acting under…………. and when both have reasonable
knowledge of the relevant facts.
B) COMPULSION
23. When using the income method for valuation, what aspect of asset is primarily focus?
A) FUTURE POTENTIAL INCOME
24. Depreciated Replacement Cost is:
C) USUALLY SMALLER THAN THE REPRODUCTION COST
25. The value at the end of the utility period without being dismantled is termed as:
C) SALVAGE VALUE
PART 1(5 POINTS)
Choose the best answer for each question. Each question is worth 0.2 points.
1. Actual Furvival life of the building before it collapses is called the
C) PHYSICAL LIFE
2. Nancy's house is the most dilapidated home in her neighborhood. However, her property has
been valued higher than she expected. What principle of valuation is likely at play?
A) PRINCIPLE OF HIGHEST AND BEST USE
3. What is the property being appraised known as in the process of appraising?
D) SUBJECT PROPET
4. Which of the following is not normally included as one of the advantages of real estate as an
investment?
A) LIQUIDITY
5. Which the following method is used to estimate the market value of the asset based on the
price at which similar assets have been sold in the market?
D) MARKET METHOD
6. ……. refers to the loss in value within a structure due to changes in tasies, preferences, and
technical innovations
D) FUNCTIONAL OBSOLESCENCE
7.......represent an arm's length transaction and must be included from consideration in an
appraisal?
A) A HOME THAT SOLD SIX MONTHS AGO, BUT IS OTHERWISE SIMILAR TO
THE HOME BEING APPRAISED
8. A valuer is valuating property using the comparative method. Which of the following
characteristics of comparable properties for use?
D) ALL THE ABOVE
9. Two types of value that are often contrasted are subjective value and:
C) OBJECTIVE VALUE
10. Which of the following would be considered a design deficiency newer, hi-end construction?
D) THERE ARE NO COMFORTABLE AREA IN THE KITCHEN WHERE THE
FAMILY CAN EAT
11. The proposed development of Metrorail station in the city creates an increase in real estate
demand in the surrounding area. According to the principle of Demand, Supply, and Desire:
B) THE HOME VALUES AND RENTS WILL GO UP.
12. Before making a valuation report, a valuer should:
A) VISIT THE PROPERTY TO OBSERVE ITS FEATURES AND QUALITY
13. The best indication of a property's value comes from:
C) RECENTLY SOLD PROPERTIES
14. Under rent capitalization method, the value of the property incresses with
C) LOWER CAPITALIZATION RATE
15. "not coercive manner" is meaning:
B) WITHOUT COMPULSION
16. "Arm's length transaction" is meaning
B) OBJECTIVE TRANSACTION
17. In the cost method, what adjustments is typically made to the historical cost of the asset?
C) ADJUSTMENTS FOR FUNCTIONAL OBSOLESCENCE
18. How is the income approach applied to valuing a fleet of delivery trucks?
B) ESTIMATING POTENTIAL INCOME OVER USEFUL LIFE
19. What is the best way to estimate the value of a house to sell?
B) COMPARING THE PROPERTY WITH SIMILAR HOME THAT HAVE SOLD
RECENTLY
20. Technological assets become obsolete so fast that their…………………… is often shortened.
A) ECONOMIC LIFE
21. When comparing with sales of similar properties, valier typically make names sens to the
comparables' prices. This is because
C) NO TWO PROPERTIES ARE EXACTLY ALIKE
22. Fair market value is the amount at which property would change hands between a willing
seller and a willing buyer when neither is acting under…………. and when both have reasonable
knowledge of the relevant facts.
B) COMPULSION
23. When using the income method for valuation, what aspect of asset is primarily focus?
A) FUTURE POTENTIAL INCOME
24. Depreciated Replacement Cost is:
C) USUALLY SMALLER THAN THE REPRODUCTION COST
25. The value at the end of the utility period without being dismantled is termed as:
C) SALVAGE VALUE
PART 1(5 POINTS)
Choose the best answer for each question. Each question is worth 0.2 points.
1. Actual Furvival life of the building before it collapses is called the
C) PHYSICAL LIFE
2. Nancy's house is the most dilapidated home in her neighborhood. However, her property has
been valued higher than she expected. What principle of valuation is likely at play?
A) PRINCIPLE OF HIGHEST AND BEST USE
3. What is the property being appraised known as in the process of appraising?
D) SUBJECT PROPET
4. Which of the following is not normally included as one of the advantages of real estate as an
investment?
A) LIQUIDITY
5. Which the following method is used to estimate the market value of the asset based on the
price at which similar assets have been sold in the market?
D) MARKET METHOD
6. ……. refers to the loss in value within a structure due to changes in tasies, preferences, and
technical innovations
D) FUNCTIONAL OBSOLESCENCE
7.......represent an arm's length transaction and must be included from consideration in an
appraisal?
A) A HOME THAT SOLD SIX MONTHS AGO, BUT IS OTHERWISE SIMILAR TO
THE HOME BEING APPRAISED
8. A valuer is valuating property using the comparative method. Which of the following
characteristics of comparable properties for use?
D) ALL THE ABOVE
9. Two types of value that are often contrasted are subjective value and:
C) OBJECTIVE VALUE
10. Which of the following would be considered a design deficiency newer, hi-end construction?
D) THERE ARE NO COMFORTABLE AREA IN THE KITCHEN WHERE THE
FAMILY CAN EAT
11. The proposed development of Metrorail station in the city creates an increase in real estate
demand in the surrounding area. According to the principle of Demand, Supply, and Desire:
B) THE HOME VALUES AND RENTS WILL GO UP.
12. Before making a valuation report, a valuer should:
A) VISIT THE PROPERTY TO OBSERVE ITS FEATURES AND QUALITY
13. The best indication of a property's value comes from:
C) RECENTLY SOLD PROPERTIES
14. Under rent capitalization method, the value of the property incresses with
C) LOWER CAPITALIZATION RATE
15. "not coercive manner" is meaning:
B) WITHOUT COMPULSION
16. "Arm's length transaction" is meaning
B) OBJECTIVE TRANSACTION
17. In the cost method, what adjustments is typically made to the historical cost of the asset?
C) ADJUSTMENTS FOR FUNCTIONAL OBSOLESCENCE
18. How is the income approach applied to valuing a fleet of delivery trucks?
B) ESTIMATING POTENTIAL INCOME OVER USEFUL LIFE
19. What is the best way to estimate the value of a house to sell?
B) COMPARING THE PROPERTY WITH SIMILAR HOME THAT HAVE SOLD
RECENTLY
20. Technological assets become obsolete so fast that their…………………… is often shortened.
A) ECONOMIC LIFE
21. When comparing with sales of similar properties, valier typically make names sens to the
comparables' prices. This is because
C) NO TWO PROPERTIES ARE EXACTLY ALIKE
22. Fair market value is the amount at which property would change hands between a willing
seller and a willing buyer when neither is acting under…………. and when both have reasonable
knowledge of the relevant facts.
B) COMPULSION
23. When using the income method for valuation, what aspect of asset is primarily focus?
A) FUTURE POTENTIAL INCOME
24. Depreciated Replacement Cost is:
C) USUALLY SMALLER THAN THE REPRODUCTION COST
25. The value at the end of the utility period without being dismantled is termed as:
C) SALVAGE VALUE