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Day 4 Fundamentals of REA Exam
Day 4 Fundamentals of REA Exam
Real Estate Appraisal Reviewer 2022 by Mister Z (Updated Quarterly). CONGRATULATIONS and CLAIM YOUR APPRAISER LICENSE
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C. Fire insurance
D. A grazing lease
E. A ground lease
8. In preparing an appraisal, definition of the problem identifies all of the following except
A. The highest and best use for the property
B. The real estate being appraised
C. The date of the values estimates
D. The real property rights
E. The use to which the appraisal will be put
9. In appraising, the data requirements are set by the
A. Appraiser
B. Seller
C. Lender
D. Appraisal problem
E. Client
10. The requirement to verify data in appraisal report vary according to
A. The purpose and intended use of the appraisal report
B. The appraiser’s available time
C. Legal restrictions on the property
D. The type of value being sought
E. The use to which the property has been put
11. A property’s immediate environment is
A. A neighborhood
B. The adjacent uses
C. Its pivotal point
D. A natural boundary
E. A “comp” grid
12. The life cycle of a neighborhood illustrates the principle of
A. Change
B. Highest and best use
C. Substitution
D. Conformity
E. Anticipation
Real Estate Appraisal Reviewer 2022 by Mister Z (Updated Quarterly). CONGRATULATIONS and CLAIM YOUR APPRAISER LICENSE
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13. The data required for an appraisal assignment depend on the
A. Nature of the appraisal problem
B. Appraiser Buyer
C. Appraiser
D. Office of the Thrift Supervision
E. Lending association
16. The criteria for determining highest and best use include all of the following except
A. Financial possibility
B. Physical feasibility
C. Legal permissibility
D. Effect on community welfare
E. Maximal productivity
18. In appraising a dwelling built 50 years ago, the appraisers usually rely on the
A. Original construction cost
B. Sales comparison approach
C. Current replacement cost
D. Current reproduction
Real Estate Appraisal Reviewer 2022 by Mister Z (Updated Quarterly). CONGRATULATIONS and CLAIM YOUR APPRAISER LICENSE
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E. Superior construction technique
19. Which approach would be best when appraising a 15- to 20- year-old house?
A. Income capitalization
B. Sales Comparison
C. Feasibility study
D. Cost
E. Replacement costs new less accrued depreciation.
22. Since each value approach has its own strength and weaknesses, an appraiser should
A. Choose the approach that is the most popular with lenders
B. Choose the approach that is the most popular with buyers
C. Weigh the strength and weaknesses of each approach and decide which is the most
reliable for the subject property
D. Weight each approach equally
E. Use the approach that the client feels is most appropriate
23. The cost approach is often given more weight in the appraisal of
A. New buildings or special-use buildings
B. Vacant land
C. Old or obsolete building
D. Commercial and industrial properties
E. Single-family houses more than 10 years old
Real Estate Appraisal Reviewer 2022 by Mister Z (Updated Quarterly). CONGRATULATIONS and CLAIM YOUR APPRAISER LICENSE
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C. Provide arguments to justify his or her final conclusion of value
D. Explain his or her judgments and reasoning
E. Do all of the above
27. Which of the following is the shortest and least detailed type of appraisal report?
A. Restricted
B. Summary
C. Self-contained
D. Engagement letter
E. Detailed
28. All of the following are main sections in the typical narrative appraisal report except
A. Addenda
B. Introduction
C. Description, analyses, and conclusion
D. Engagement letter
E. Valuation
Real Estate Appraisal Reviewer 2022 by Mister Z (Updated Quarterly). CONGRATULATIONS and CLAIM YOUR APPRAISER LICENSE
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B. Are difficult to computerized
C. Are seldom adequate for appraisals
D. Allow little space for neighborhood analysis
E. May not be as detailed or complete as written reports
32. The important reason(s) for inspecting and analyzing the subject site is (are) to
A. Note any unusual characteristics
B. Ascertain its highest and best use
C. Be certain the property exists
D. Find comparable sales
E. All of the above
33. The length of a tract of land along a street is called the land’s
A. Frontage
B. Depth
C. Width
D. Abutment
E. Lineage
35. The livable square footage of a single-family residence is usually measured from the
A. Total interior (including interior walls)
B. Inside room dimensions
C. Interior plus basement
D. Exterior, with adjustment for wall width
E. Exterior
Real Estate Appraisal Reviewer 2022 by Mister Z (Updated Quarterly). CONGRATULATIONS and CLAIM YOUR APPRAISER LICENSE
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36. The most important item an appraiser needs for recording data during a building inspection
is a
A. Checklist
B. Tape measure
C. Clipboard
D. Plat map
E. Blank paper
38. The period over which a building may be profitably used is its
A. Effective life
B. Physical life
C. Actual life
D. Normal life
E. Useful life
40. To be considered as a possible alternative for highest and best use, a use must be
A. Physically and legally possible
B. Physically and legally possible and financially feasible
C. Already in existence and legal
D. Physically possible and appropriate
E. Legal and profitable
41. When applying the concept of highest and best use of land as if vacant, the assumption is
made that
A. Vacant land produces maximum income
B. Zoning cannot be changed
C. The basic characteristics of a site can be changed
Real Estate Appraisal Reviewer 2022 by Mister Z (Updated Quarterly). CONGRATULATIONS and CLAIM YOUR APPRAISER LICENSE
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D. Any existing building can be demolished
E. Land is not subject to erosion
42. The highest and best use of land as if vacant forms part of the basis for
A. Mortgage equity analysis
B. A property rights adjustment
C. The cost approach
D. An operating expense estimates
E. The square footage approach
43. The best assurance of appraisal accuracy results from the use of
A. A large number of truly comparable properties
B. The gross dollar amount of adjustments
C. The greatest number of adjustments
D. A net dollar amount of adjustments
E. Market segmentation
44. The direct sales comparison approach to appraising derives an estimate of value from
A. Checking prices in the Wall Street Journal stock market report
B. Comparison of the architecture of properties
C. Comparison of loans made on properties
D. Original costs of comparable properties
E. Sales of comparable properties
Real Estate Appraisal Reviewer 2022 by Mister Z (Updated Quarterly). CONGRATULATIONS and CLAIM YOUR APPRAISER LICENSE
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C. Is considered inferior to other methods
D. Is used only when the subject property is unimproved
E. Is sed for real estate but not for personal property appraisals
48. In an open market transaction, the subject property sold would not be
A. Sold to a relative
B. Listed on a multiple listing service
C. Advertised in local newspaper
D. Listed for at least 30 days
E. Closed by a title company
49. The minimum number of comparable sales needed to apply direct sales comparison is
A. 10
B. 3
C. 4
D. 30
E. No set number
Real Estate Appraisal Reviewer 2022 by Mister Z (Updated Quarterly). CONGRATULATIONS and CLAIM YOUR APPRAISER LICENSE
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Day 4 Multiple Choice Answers
1. E 26. E
2. B 27. A
3. A 28. D
4. E 29. C
5. A 30. E
6. C 31. B
7. C 32. E
8. A 33. A
9. A 34. C
10. A 35. E
11. B 36. A
12. A 37. C
13. A 38. E
14. C 39. C
15. A 40. B
16. D 41. D
17. A 42. C
18. B 43. A
19. B 44. E
20. B 45. D
21. A 46. D
22. C 47. A
23. A 48. A
24. E 49. E
25. B 50. E
Real Estate Appraisal Reviewer 2022 by Mister Z (Updated Quarterly). CONGRATULATIONS and CLAIM YOUR APPRAISER LICENSE
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