Fundamentals of Appraisal Review, No. 105
Post-Course Assessment
1. The appraiser’s
compensation should NOT be
affected by:
a. the complexity of the
property.
b. the range of the value
opinion.
c. the time expended on
the appraisal.
d. appraiser’s expenses.
2. According to USPAP, an
appraiser who considers that
he/she lacks the technical
expertise to properly perform an
appraisal assignment, must
disclose the lack of expertise:
a. In the certification
section of the report.
b. during the appraisal if it
is determined that the lack of
expertise is critical.
c. prior to accepting the
assignment.
d. prior to accepting the
fee.
3. Prior to accepting a review
assignment, an appraiser must:
a. advise the client of any
limitation of competence.
b. receive a retainer.
c. advise the client of the
scope.
d. analyze the
construction.
4. A separate building should
be valued based on Its:
a. contribution to the site
value.
b. cost.
c. contribution to other
buildings.
d. regression.
5. USPAP requires the review
appraiser to:
a. inspect the property.
b. identity the subject.
c. Inspect both the subject
and the comps.
d. inspect the subject only.
6. When a review is to render a
value conclusion, the reviewer
actually values the:
a. real estate only.
b. property rights.
c. land and all
improvements.
d. land and permanent
improvements.
7. In review appraising, highest
and best use:
a. is important in
developing market value.
b. applies only to the site.
c. is not considered in
review.
d. applies only to the site
as improved
8. Which of the following is real
estate?
a. a septic tank
b. a condominium
c. a deed of trust
d. a long term lease
9. In review appraising, the
Competency Rule of USPAP
applies:
a. only to the property
rights.
b. to the type of real estate
only.
c. only to a specific market.
d. to all of the above
10. According to USPAP,
buildings are valued based on
the:
a. principle of substitution.
b. principle of contribution.
c. rental value.
d. principle of change.
11. In the final value
reconciliation,
a. Two approaches with
the same value are used.
b. Only one approach is
used.
c. the indications of value
are typically averaged after
careful analysis.
d. consideration of each
approach Is based on
quantity and quality of
applicable data analyzed.
12. As residential values
increase, developers find it
profitable to build on land
previously considered to be too
expensive for residential use.
This is an example of the
principle of:
a. supply and demand.
b. conformity.
c. competition.
d. contribution.
13. Four houses in the same
neighborhood were recently
listed, and each was similar in
both appeal and utility. The
principle that the lowest priced
will sell first is called:
a. balance.
b. competition.
c. supply and demand.
d. substitution.
14. The impact on value of
square footage of gross living
area in moderate-sized
residences has
a. essentially the same
effect as in other residences.
b. cannot be assessed
c. is the least critical
indicator of value.
d. has no bearing on value.
15. The review appraiser must
comply with the Competency
Rule, Standard 3 and:
a. The current edition of
the Appraisal of Real Estate.
b. Standard 1.
c. Standard 2.
d. Instructions from the
field appraiser.
16. The subject property was
listed last month for $100,000,
but the sellers have accepted an
offer of $80,000, because they
were in fear of bankruptcy.
USPAP requires the appraiser to
consider and analyze:
a. the sales contract only.
b. the listing only.
c. neither of the two since
they are not “closed, arms
length transactions.
d. both the listing and the
sales contract.
17. In reviewing an appraisal,
you conclude that one of the
approaches is a very poor
indicator of value. You should:
a. ignore the approach
b. explain why you think
that the approach is a poor
indicator.
c. state “the approach is
irrelevant.”
d. develop another
approach in order to have
three approaches.
18. The appraiser’s conclusion
of the highest and best use:
a. must be stated in the
report unless it is
unnecessary or irrelevant.
b. must be stated and
documented in every report.
c. must be stated in the
report, however, it need not
be documented unless it is
different from the current
use.
d. is limited to the legal
uses on the date of the
appraisal.
19. The review appraiser may
reach a different final value
conclusion from the appraiser as
pertains to both the value and
a. date.
b. condition
c. substitution
d. terminology
20. The reviewer’s opinion of
accrued depreciation does not
include:
a. physical deterioration.
b. financial obligations.
c. functional obsolescence.
d. externalities.
Course 105 Answer Key
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