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Test Exam Appraisal
Test Exam Appraisal
INSTRUCTION: Do not write on the test paper. Write your best answer by writing the question
number and the answer opposite to the question number. Example: Q1 – a.
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1. To an appraiser, the definition of value is:
a. The relationship between the thing desired and the potential purchaser
b. The ability of one commodity to command other commodities in exchange
c. The worth, usefulness, or utility of an object to someone for some purpose
d. A good guy
2. An appraisal is:
a. A fixed of value
b. An estimate or opinion of value
c. A statement of value
d. A value determination
3. The two types of real estate appraisals are:
a. Formal and informal
b. Informal and intuitive
c. Structural and formal
d. None of the above
4. Informal appraisals are performed by:
a. Only by appraisers
b. Only by skilled real estate practitioners
c. All consumers
d. Without the use of inspection
5. Informal appraisals rely mostly on:
a. A secret value formula
b. Facts and figures
c. Supporting data
d. A value formula
6. Besides assisting the public by advising on questions of value, appraisers are tasked to:
a. Provide unbiased and objective opinions of value
b. Make market transactions conform to economics
c. Prove or disprove value estimates made by others
d. None on the above
7. Legal transactions that often require appraisals include all of the following except:
a. Income tax casualty loss estimates
b. Property damage lawsuits
c. Company liquidation or mergers
d. Private feasibility studies
8. Some of the important reasons for studying appraisals are:
a. To improve your value estimate skills
b. To help you pass the real estate agent, broker, appraiser examination
c. To improve your ability to communicate with appraisers
d. A, b, and c
16. Refers to a price at which a property may be sold by a seller who is not compelled to sell, and
bought by a buyer who is not compelled to buy.
a. Market value
b. Fair Market Value
c. Assessed Value
d. Value in exchange
17. The act or process of determining the value of property as of a specified date for specific
purpose done only by licensed practitioners.
a. Appraisal
b. Pricing
c. Costing
d. Assessment
18. A young married couple was looking for a home and found one that they liked very much,
but after hearing the high asking price, they decided not to buy it. Their reason for not buying
was probably based upon the principle of:
a. Substitution
b. Conformity
c. Highest and Best Use
d. Anticipation
19. The form and supporting data in an appraisal vary mainly with the:
a. Preference of the appraiser
b. Purpose of the intended use of the appraisal
c. Legal restrictions
d. The types of the value sought
20. A subjective kind of value that can be determined only by the owner of the property or by a
biased valuer is called:
a. Value in exchange
b. Value in use
c. Listing Value
d. Assessed value
21. Which of the following is not effective without purchasing power?
a. Utility
b. Supply
c. Demand
d. Levels of wages
22. In appraising an old house, the following are not important:
a. Purpose of the appraisal
b. Suitability of the site
c. Original cost
d. Physical condition of the improvement
23. The appraisal process involves 6 steps, the first of which is to:
a. Define the problem
b. Choose an appropriate value approach
c. View of the property
d. None of the above
GOOD LUCK!!!