Price, Value, & Appraising End of Course Test #2

Question 1 of 30

1. Question

Which of the following inspections will not be part of the appraiser’s job?

a. interior inspection
b. exterior inspection
c. title work

Question 2 of 30

2. Question

The appraiser’s value estimate is based on:

a. verifiable data
b. speculation
c. the list price

Question 3 of 30

3. Question

The sales comparison approach is best used on:

a. office buildings
b. special use properties
c. residential single-family dwellings

Question 4 of 30

4. Question

Are cost and value the same amount of money?

a. never
b. always
c. they might be, but often they are not identical

Question 5 of 30

5. Question

Is the garage area of a single-family dwelling included in the square footage?

a. yes, always
b. yes, if it has outlets
c. no

Question 6 of 30

6. Question

Which of the following is not part of the appraisal report?

a. site analysis
b. a history of all previous owners
c. a neighborhood analysis

Question 7 of 30

7. Question

Do the terms and conditions of a sale ever influence why a property sold for the price the seller received?

a. yes, especially if the seller paid the buyer’s closing costs
b. yes, but it is illegal
c. no, it never matters

Question 8 of 30

8. Question

Does FNMA require the appraiser to do the cost approach on form 1004 for all properties?

a. yes, always
b. no, it is not required
c. no, but it must be done for the appraiser to get paid

Question 9 of 30

9. Question

Superior maintenance and remodeling of a property might influence a property’s effective age in:

a. a positive way (looks newer)
b. a negative way (looks older)
c. in an illegal way (looks stigmatized)

Question 10 of 30

10. Question

Are recent sales the only data considered for an appraisal or CMA?

a. yes, it is all that matters
b. no, other data is also important
c. it depends on the individual doing the analysis

Question 11 of 30

11. Question

Market value and market price are:

a. always the same
b. never the same
c. two independent items that could be the same…or not

Question 12 of 30

12. Question

Which of the following is least likely to influence the value of a home?

a. the number of people occupying it
b. the location of the property
c. the size of the property

Question 13 of 30

13. Question

Which would influence an appraiser’s value estimate the most?

a. the comparable sales in the area
b. the seller’s loan balance
c. the age of the average homeowner

Question 14 of 30

14. Question

The cost of the land, plus the cost of labor and materials is used in which approach to value?

a. the sales comparison approach
b. the income approach
c. neither a or b

Question 15 of 30

15. Question

Which approach to value does FNMA form 1004 focus on most?

a. the sales comparison approach
b. the cost approach
c. the income approach

Question 16 of 30

16. Question

Which influences property values the least?

a. taxes in the area
b. the social media habits of the people in the area
c. the condition of properties in the area

Question 17 of 30

17. Question

Is it important to verify the accuracy of the data to be analyzed?

a. yes, because garbage in…garbage out
b. no, if you get it on your computer screen or cell phone it’s buffered
c. no, because fake data is illegal

Question 18 of 30

18. Question

Which approach to value involves adjustment to sold properties?

a. cost approach
b. income approach
c. sales comparison approach

Question 19 of 30

19. Question

What happens when demand exceeds supply?

a. prices go up
b. prices stay flat
c. prices go down

Question 20 of 30

20. Question

Tom and Betty bought a vacant lot in an area where all of the homes are 0-3 years old and are valued between $300,000 to $400,000. Which of the following is best considering they paid $90,000 for the lot?

a. improvements in the $100,000 to $150,000 range
b. improvements in the $190,000 to $250,000 range
c. improvements in the $350,000 to $500,000 range

Question 21 of 30

21. Question

What type of value do most lenders care most about when making a home loan?

a. insured value
b. market value
c. salvage value

Question 22 of 30

22. Question

A CMA and an appraisal have which item in common?

a. they cost the client the same amount (fees are identical)
b. they both use market data to formulate an opinion
c. they both rely heavily on the cost approach to value

Question 23 of 30

23. Question

Appraisers are expected to be:

a. objective
b. emotional
c. easily influenced by sellers

Question 24 of 30

24. Question

Which is an example of economic or external obsolescence?

a. a house backing to a junk yard
b. a house that has been updated
c. a house with 5 bedrooms

Question 25 of 30

25. Question

A house with a poor floor plans suffers a loss in value due to:

a. plottage increment
b. a violation of fair housing
c. functional obsolescence

Question 26 of 30

26. Question

Is a screened in porch part of the property’s real estate?

a. yes, but not part of the square footage
b. no
c. only if it is a four seasons room

Question 27 of 30

27. Question

Does an appraiser normally take a picture of the subject property and include it as part of the report?

a. yes, but only if the appraisal is coming in low
b. yes, this is normally expected
c. no, seeing subject property’s photo is not of value to the client

Question 28 of 30

28. Question

Is it illegal for real estate agents to talk to appraisers?

a. no, it is ok for the agent
b. yes, it violates federal fair housing
c. yes, unless the appraiser starts the conversation

Question 29 of 30

29. Question

What would happen if too many homes were built in an area? Would property values:

a. go up, because someday the demand might be there
b. go down, because supply exceed demand
c. stay flat, because typically, property values don’t change

Question 30 of 30

30. Question

Assessed value and appraised value are:

a. opposite types of value
b. the same
c. two different types of value