Property Valuation & Appraisal Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of the following is an example of curable obsolescence?

Question 2 2. The income approach to property valuation is useful for what kind of buyer?

Question 3 3. A residential home is built in the middle of an industrial park. This will cause the value of the property to be much less than if a manufacturing plant was built on the site. Which principle is this an example of?

Question 4 4. A comparable home has a property value of $200,000. It has an extra bedroom compared to the subject. The appraiser estimates this accounts for a $15,000 difference in value between the two properties. The subject property has a larger garage, which is worth an extra $2,000 in value. Considering these factors, what is the subject's adjusted property value?

Question 5 5. What is the best description of the discounted cash flow method?

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Question 6 6. Which of the following is a limitation of the comparable sales approach?

Question 7 7. The loss of a city's major employer is what type of obsolescence?

Question 8 8. Which of the following is NOT one of the four foundational pillars of property valuation?

Question 9 9. How does the sales comparison approach refer to the property being purchased?

Question 10 10. Which of the following is the most likely example of functional obsolescence?

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Question 11 11. Jack wants to sell his three bedroom Tudor house for $250,000, but all other similar homes in the area are selling for $225,000. According to the principle of _____, Jack's home is more likely to be worth $225,000.

Question 12 12. Bill wants to buy a real estate investment from which he can expect an 8% cap rate. If the net operating income from a certain property is $6500 per year, what is the value to Bill of the home using the direct capitalization method?

Question 13 13. Which of the following is not likely a factor for an adjustment in looking at comparable sales?

Question 14 14. 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?

Question 15 15. What is the gross income multiplier of a house that rents for $1,200 each month and would sell for $150,000?

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Question 16 16. Jon builds a rustic log cabin in the middle of an urban residential area that features many ultramodern style homes. According to the principle of _____, the cabin will diminish in value.

Question 17 17. Which of the following is a method in the income approach to property valuation?

Question 18 18. Fading paint is an example of what kind of obsolescence?

Question 19 19. In the most general sense, what does depreciation refer to?

Question 20 20. How does the sales comparison approach estimate property value?

Property Valuation & Appraisal Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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