Test Exam Appraisal

PRELIM TEST QUESTIONS
REAL ESTATE APPRAISAL AND ASSESSMENT IN MANAGEMENT
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
Prelim Test Real Estate Appraisal and Assessment in Government Page 1

9. Which of the following acts of an appraiser would not be in violation of USPAP?

a. Perform an appraisal and collects a fee for services on a property in which the
appraiser disclosed an interest
b. Perform an appraisal and base the fees on a percentage of the value estimate
c. Accepts and assignment without disclosure of lack of previous knowledge or
experience of a character to qualify for the assignment
d. Pays a fee to another for referring clients for appraisal assignment without disclosure.
10. An objective kind of value that can be assigned to the items and properties bought and sold in
the market is called:
a. Value in use
b. Value in exchange
c. Economic value
d. Potential value
11. Refers to a person who possesses the necessary qualifications, license, ability and experience
to execute or direct the valuation of real property for the government.
a. Assessor
b. Appraiser
c. Consultant
d. Valuer
12. Subject to the provision of the labor code, a corporation or partnership may hire the services
of a registered and licensed real estate appraiser on commission basis to perform real estate
services, the real appraiser shall be deemed _____________.
a. Independent Contractor
b. Full-time employee
c. Part-time employee
d. Dependent contractor
13. Under the code of conduct and ethical standard, the real estate practitioner in relation to the
government is expected to perform as such except:
a. Secure all the necessary license, permits and authority
b. Pay any and all taxes, fees, dues, levies or charges
c. Encourage, abet, tolerate, or participate in the aversion or illegal reduction in the
payment of all taxes, fees, dues, levies or charges
d. Should not offer or agree to pay, split or rebate any commission or fee.
14. Real properties are considered as immovable properties. This kind of real property is
immovable in the sense that it is attached in a fixed manner to be an integral part thereof.
a. Real by nature
b. Real by incorporation
c. Real by destination
d. Real by analogy
15. The following are lands classified as public domain, except:
a. Agricultural land
b. Forest or timber land
c. Residential land
d. National parks

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

24. The “total living area” of a residential structure is measured by:

a. Exterior measurements including walls and finish
b. Interior measurements only
c. House and garage area combined
25. Which of the following might be classified as tangible rather than intangible amenities:
a. Pride of ownership
b. A sense of security
c. Free Rent
d. Work satisfaction
GOOD LUCK!!!

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PRELIM TEST QUESTIONS

REAL ESTATE APPRAISAL AND ASSESSMENT IN MANAGEMENT

Prelim Test Real Estate Appraisal and Assessment in Government Page 1

9. Which of the following acts of an appraiser would not be in violation of USPAP?

Prelim Test Real Estate Appraisal and Assessment in Government Page 2

Prelim Test Real Estate Appraisal and Assessment in Government Page 3

24. The “total living area” of a residential structure is measured by:

Prelim Test Real Estate Appraisal and Assessment in Government Page 4

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