Session 3 Quiz

Question 1

In studying a tract of land to estimate its value, what is the appraiser’s first necessary consideration?

Answer 1

Highest and Best Use

Question 2

Who is required to post a bond before engaging in practice?

Answer 2

Private Real Estate Appraiser

Question 3

The first step in the appraisal process is to _____.

Answer 3

Analyse the problem

Question 4

A method of property appraisal to estimate the fair market value of an improvement by estimating present production cost and deducting depreciation.

Answer 4

Cost Approach to Value

Question 5

What are the purposes of appraisal?

Answer 5

Purchase, Insurance, and Property Disputes.

Question 6

What are normally included in the limiting conditions in a Valuation Report?

Answer 6

The valuer did not conduct an instrumental survey; the valuer is not responsible for liens and or encumbrances annotated in the title; and the valuer has no expertise in evaluating any structural defect of the building or improvements.

Question 7

The appraiser’s conclusion of value is most likely based on _____.

Answer 7

A weighing of the values indicated by each tree approached according to their appropriateness and the reliability of the data used in each.

Question 8

In seeking clarity of Valuation Report, the appraiser/valuer must utilize the suitable _____.

Answer 8

Choice of appropriate and simple words; reading level of client and user; and language.

Question 9

The process of discounting income expectancies to a present worth is called _____.

Answer 9

Capitalization

Question 10

The following are the advantages of the corner lots except _____.

Answer 10

Close to intersection and possible prone to noise and headlights of vehicles.

Question 11

It is the result of incompatibility with current market requirements.

Answer 11

Functional Depreciation

Question 12

Conclusion as to the highest and best use is part of which step?

Answer 12

Analysing the data

Question 13

The cost approach is often given more weight in the appraisal of _____.

Answer 13

New building or special-use buildings

Question 14

You are a licensed appraiser who had been asked to help in developing and selling a 15-hectare raw land. The client needs help on what type of development should be introduced to the property and how to deal with the marketing plan. If you accept this assignment, you are _____.

Answer 14

Not comprehend to perform this assignment

Question 15

A method of comparison in appraisal work.

Answer 15

Observation Method

Question 16

To account for significant differences between the subject and other comparable properties, the appraiser identifies and calculates the effect of the said differences and applies them as _____.

Answer 16

Adjustment Factors

Question 17

The principle of anticipation is most useful in which type of real estate valuation?

Answer 17

Income Approach

Question 18

A review of the appraisal report limited to the data in the report, may use a simple checklist.

Answer 18

Desk Review

Question 19

What are the forms of depreciation?

Answer 19

Physical deterioration, functional obsolescence, and economic obsolescence.

Question 20

Which two parts of the Valuation Report are most important to the client?

Answer 20

The estimate of value and justification of value conclusion, and description and environment.

Question 21

Value indications are reconciled into a final estimate.

Answer 21

After all three approaches have been completed.

Question 22

A valuation review that is limited to the date presented in the report, which may or may not be independently confirmed.

Answer 22

Desk Review

Question 23

In reconciliation and conclusion of value, the appraiser should _____.

Answer 23

Describe the relevance of each value approach explored; discuss the reliability of the data used; and provide arguments to justify his or her final conclusion of value.

Question 24

A Valuer or an Appraiser who, together with any associate, has no material links with the client, and agent acting on behalf of the client, or the subject of the assignment.

Answer 24

External Valuer

Question 25

The appraisal term for the cost of an improvement which is an exact replica of subject property.

Answer 25

Reproduction Cost

Question 26

The fundamental valuation principle underlying the sales comparison process is _____.

Answer 26

Substitution

Question 27

The highest level of reliability is found in a _____.

Answer 27

Complete Appraisal

Question 28

The three approaches to estimating value are _____.

Answer 28

Cost, Direct Sales Comparison, and Income Capitalization.

Question 29

In court proceeding where the Appraiser/Valuer is presented as expert witness. Which report is most appropriate at the moment?

Answer 29

Oral Report