What would be the best appraisal approach to use in estimating the market value of an athletic stadium?

Which of the following terms refers to the stages that a neighborhood goes through over time?

A.a. Growth cycle

B.b. Revitalization

D.d. Redevelopment

Answer Key: C

Question 2 of 50

2.0/ 2.0 Points

The value principle that states that two adjacent parcels of land combined into one larger parcel could have a greater value than the two parcels valued separately is called

A.a. regression.

B.b. anticipation.

D.d. progression.

Answer Key: C

Question 3 of 50

0.0/ 2.0 Points

The period in which property values are generally at their highest is

A.a. growth.

C.c. decline.

D.d. equilibrium.

Question 4 of 50

0.0/ 2.0 Points

The term site refers to

A.a. a legal description of a plot of land.

B.b. land that has been improved.

C.c. raw land with no improvements.

D.d. land within a certain set of boundaries.

Question 5 of 50

2.0/ 2.0 Points

The effects of ordinary wear and tear are considered

A.a. physical deterioration.

B.b. functional obsolescence.

C.c. external obsolescence.

D.d. accelerated depreciation.

Question 6 of 50

2.0/ 2.0 Points

Functional obsolescence could be caused by which of the following?

A.a. A worn-out roof

B.b. A poor location

C.c. Deferred maintenance

D.d. A ceiling that is too high

Question 7 of 50

2.0/ 2.0 Points

A house with four bedrooms and one bathroom is an example of

A.a. physical deterioration.

             B.b. functional obsolescence.

C.c. external obsolescence.

D.d. incurable physical deterioration.

Question 8 of 50

2.0/ 2.0 Points

An expressway is built near a residential neighborhood resulting in very high traffic noise. This is an example of

A.a. physical deterioration.

B.b. functional obsolescence.

             C.c. external obsolescence.

D.d. None of the above

Question 9 of 50

2.0/ 2.0 Points

The usual pattern of growth, equilibrium and decline may be amplified by

A.a. changes in nearby land use.

B.b. availability of newer property nearby.

C.c. general economic downturn.

             D.d. All of the above

Question 10 of 50

2.0/ 2.0 Points

Which of the following factors would not be important in comparing properties under the sales comparison approach to value?

A.a. Size of lot

B.b. Number of rooms

             C.c. Interior decor

D.d. Type of construction

Question 11 of 50

2.0/ 2.0 Points

Which of the following would not be likely to prevent an arm’s-length transaction?

A.a. Parent sells the family home to one of the children

B.b. Corporation buys its transferred employee’s house

C.c. Pending foreclosure necessitates a sale

             D.d. Owner planning to move up to more expensive house

Question 12 of 50

2.0/ 2.0 Points

Which of the following would normally not require a site to be valued separately from the structures on it?

A.a. Use of the cost approach

             B.b. Use of the sales comparison approach

C.c. Use of the building residual technique

D.d. Assessment for ad valorem taxation purposes

Question 13 of 50

2.0/ 2.0 Points

Residential property in an area rezoned for commercial use is an example of a(n)

A.a. conditional use.

B.b. illegal use.

             C.c. nonconforming use.

D.d. speculative use.

Question 14 of 50

2.0/ 2.0 Points

Land value of an improved property can be found using the

A.a. sales comparison method.

             B.b. allocation method.

C.c. subdivision development method.

D.d. land development method.

Question 15 of 50

2.0/ 2.0 Points

When a site’s highest and best use is forecast to change in the near future, the present use is considered a(n)

A.a. restricted use.

             B.b. interim use.

C.c. speculative holding.

D.d. temporary use.

Question 16 of 50

2.0/ 2.0 Points

The value of all improvements (less depreciation) is subtracted from total sales price to find land value in the

A.a. sales comparison method.

B.b. allocation method.

             C.c. abstraction method.

D.d. subdivision development method.

Question 17 of 50

0.0/ 2.0 Points

All probable costs of an improvement and construction are calculated to find land value in the

A.a. sales comparison method.

In B.b. allocation method.

C.c. abstraction method.

D.d. subdivision development method.

Question 18 of 50

2.0/ 2.0 Points

Building net income is a consideration in finding land value by the

A.a. sales comparison method.

B.b. allocation method.

C.c. subdivision development method.

             D.d. land residual method.

Question 19 of 50

0.0/ 2.0 Points

Which statement is true?

A.a. The sales comparison approach is the least reliable method of site valuation.

B.b. There are no basic differences between the data valuation of improved properties and unimproved sites in the sales comparison method.

C.c. Vacant land cannot be valued by the sales comparison method.

In D.d. Adjustments are always applied to the sales price of the subject property, not the value of the comparable property.

Question 20 of 50

2.0/ 2.0 Points

The period in which property values generally increase is

             A.a. growth.

B.b. equilibrium.

C.c. decline.

D.d. transition.

Question 21 of 50

2.0/ 2.0 Points

Land value is treated as a proportion of the total value of improved property in the

A.a. sales comparison method.

             B.b. allocation method.

C.c. subdivision development method.

D.d. land residual method.

Question 22 of 50

2.0/ 2.0 Points

Sales of similar vacant sites are analyzed and compared in the

             A.a. sales comparison method.

B.b. allocation method.

C.c. abstraction method.

D.d. All of these

Question 23 of 50

0.0/ 2.0 Points

Using the allocation method, if the ratio of land value to building value is one to three and an improved property is valued at $300,000, land value is

A.a. $150,000.

B.b. $100,000.

C.c. $75,000.

In D.d. None of these

Question 24 of 50

0.0/ 2.0 Points

In appraising a special-purpose building, such as a post office, the most reliable approach to value would generally be the

A.a. sales comparison approach.

B.b. cost approach.

In C.c. income capitalization approach.

D.d. gross income multiplier.

Question 25 of 50

0.0/ 2.0 Points

Widespread use of appraisal report forms has resulted in frequent use of

A.a. square-foot method of calculating reproduction cost.

B.b. unit-in-place method.

In C.c. quantity survey method.

D.d. index method.

Question 26 of 50

2.0/ 2.0 Points

With a present index of 462, an index at time of construction of 220, and an original cost of $145,000, the present cost of a structure using the index method is

A.a. $69,048.

             B.b. $304,500.

C.c. $319,000.

D.d. $350,900.

Question 27 of 50

2.0/ 2.0 Points

One method used to determine reproduction cost is to estimate the costs of the various components of a structure separately, and then add them together to find the total cost. This is called the

A.a. square-foot method.

             B.b. unit-in-place method.

C.c. cubic-foot method.

D.d. quantity survey method.

Question 28 of 50

2.0/ 2.0 Points

A factor representing the percentage increase in construction costs over time is used in the

A.a. quantity survey method.

B.b. square-foot method.

C.c. unit-in-place method.

             D.d. index method.

Question 29 of 50

2.0/ 2.0 Points

The method that results in the most accurate cost estimate is the

             A.a. quantity survey method.

B.b. square-foot method.

C.c. unit-in-place method.

D.d. index method.

Question 30 of 50

2.0/ 2.0 Points

A federally related transaction is

A.a. any transaction involving the sale of real estate.

             B.b. a transaction in which a federal financial institution is involved.

C.c. a federally insured transaction.

D.d. all transactions above $1 million in value.

Question 31 of 50

2.0/ 2.0 Points

Which standard of USPAP deals with review appraisals?

A.a. Standard 1

B.b. Standard 2

             C.c. Standard 3

D.d. Standard 4

Question 32 of 50

2.0/ 2.0 Points

An appraiser should be

A.a. a party to a transaction.

             B.b. objective.

C.c. consulted only in sales transactions.

D.d. compensated based on the determined value of the property.

Question 33 of 50

2.0/ 2.0 Points

The extension of some improvement, such as a fence, across the legal boundary of an adjoining parcel of land is referred to as

A.a. a special limitation.

             B.b. an encroachment.

C.c. an easement.

D.d. eminent domain.

Question 34 of 50

2.0/ 2.0 Points

Under a quitclaim deed

             A.a. the grantor transfers whatever interests he or she may have in the property without making any claims of having any interest or ownership.

B.b. the grantor personally guarantees the title.

C.c. the grantor does not guarantee title but states that he or she has an interest in the property.

D.d. the grantor warrants that he or she has not previously conveyed the property and has placed no undisclosed encumbrances against the property.

Question 35 of 50

2.0/ 2.0 Points

Which principle best describes the effect of an international airport on the value of a nearby residential subdivision?

A.a. Conformity

             B.b. Externalities

C.c. Contribution

D.d. Highest and best use

Question 36 of 50

2.0/ 2.0 Points

A highest and best use study will always value

A.a. present improvements, with no feasible change.

B.b. land without improvements.

C.c. improvements alone.

             D.d. the property's most profitable permitted use.

Question 37 of 50

0.0/ 2.0 Points

In the sales comparison approach, adjustments are made to the sales price(s) of

A.a. comparable properties only.

In B.b. the subject property only.

C.c. only the comparable most like the subject.

D.d. both the subject and comparables.

Question 38 of 50

2.0/ 2.0 Points

Vacant land would probably be valued using the

             A.a. sales comparison approach.

B.b. gross rent multiplier method.

C.c. cost approach.

D.d. income capitalization approach.

Question 39 of 50

2.0/ 2.0 Points

The measure of the effectiveness of insulation is its

A.a. heating capacity.

B.b. BTUs.

             C.c. R-value.

D.d. grade.

Question 40 of 50

2.0/ 2.0 Points

A two-story house benefits economically because

A.a. plumbing can be lined up.

B.b. heated air rises.

C.c. less ground area is required.

             D.d. All of the above

Question 41 of 50

0.0/ 2.0 Points

A rectangular-shaped building that is 35 feet wide and 55 feet long has a perimeter of

A.a. 180 feet.

In B.b. 180 square feet.

C.c. 1,925 feet.

D.d. 1,925 square feet.

Question 42 of 50

0.0/ 2.0 Points

In the U.S. government survey system, a one-square-mile area, or 640 acres, is referred to as a

In A.a. township.

B.b. tract.

C.c. section.

D.d. block.

Question 43 of 50

2.0/ 2.0 Points

The value of 100 acres of land best suited for high-density residential use may be found using the

A.a. cost approach.

B.b. income capitalization approach.

             C.c. subdivision development method.

D.d. gross rent multiplier method.

Question 44 of 50

2.0/ 2.0 Points

A property use (as opposed to a building specification) contrary to local zoning regulations would require which of the following?

A.a. Variance

B.b. Special building permit

C.c. Dezoning

             D.d. Conditional-use permit

Question 45 of 50

2.0/ 2.0 Points

Varying financing terms may be compensated for when considering comparable properties by using the

A.a. cost approach.

B.b. income capitalization approach.

             C.c. cash equivalency technique.

D.d. cash flow method.

Question 46 of 50

2.0/ 2.0 Points

The ratio of building value to land value is approximately 4 to 1. What is the land value of a property valued at $200,000, using the allocation method?

A.a. $50,000

B.b. $100,000

C.c. $66,667

             D.d. $40,000

Question 47 of 50

2.0/ 2.0 Points

All property is influenced by the principle of

A.a. anticipation.

B.b. substitution.

             C.c. change.

D.d. conformity.

Question 48 of 50

0.0/ 2.0 Points

Depreciation is most important to an appraiser using the

A.a. sales comparison approach.

B.b. gross rent multiplier method.

In C.c. income capitalization approach.

D.d. cost approach.

Question 49 of 50

2.0/ 2.0 Points

The highest and best use of real estate is its

A.a. most profitable use, without other considerations.

B.b. most environmentally sound use.

C.c. present use, unless its improvements have reached the end of their useful life.