Download MCKISSOCK BASIC APPRAISAL PRINCIPLES FINAL EXAM 2025: Questions and Answers and more Exams Insurance Economics in PDF only on Docsity!
MCKISSOCK BASIC APPRAISAL PRINCIPLES FINAL
EXAM 2025 | ALL QUESTIONS AND CORRECT
ANSWERS | NEWEST EXAM | GRADED A+ | VERIFIED
ANSWERS
"A neighborhood characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural" is the definition of ---------CORRECT ANSWER-----------------District _________ is a computerized mapping system for encoding, retrieving, analyzing and presenting geographic or spatial data. ---------CORRECT ANSWER-----------------GIS USPAP defines _________ as the amount asked, offered, or paid for a property. ---------CORRECT ANSWER-----------------Price A rancher owns six full sections plus three-quarter sections. How many acres is that? ---------CORRECT ANSWER-----------------4320, 1 Section = 640 acres, 1 Quarter = 160 acres Which entity is responsible for monitoring state appraiser licensing and certification agencies? ---------CORRECT ANSWER-----------------The Appraisal Subcommittee Modern definitions of the word "appraisal" have replaced the word _______ with ________. ---------CORRECT ANSWER-----------------estimate, opinion
The Uniform Commercial Code covers the sale of goods over $________. - --------CORRECT ANSWER----------------- 500 When comparing printers, make sure to compare the cost per --------- CORRECT ANSWER-----------------Printer Page You want to buy a house for $243,500. You can get a loan for 90% of value. You will also have to pay 2.75 points on the loan. How much will you have to deliver to closing to cover both the down payment and the loan points? ---------CORRECT ANSWER-----------------$30,376. The federal financial institutions regulatory agencies directly involved in fair lending include all of the following EXCEPT ---------CORRECT ANSWER---- -------------ASB A rectangular property measures 320 feet by 574.45 feet, and it sold for $263,750. How much did it sell for per acre? ---------CORRECT ANSWER-- ---------------$62, Which of the following types of investments has historically generated the highest return on investment? ---------CORRECT ANSWER----------------- Real Estate A market analysis examines ____________ , where a marketability analysis examines ______________. ---------CORRECT ANSWER------------ -----a type of property, a specific property
The four components of the Appraiser Qualification Criteria are: --------- CORRECT ANSWER-----------------qualifying education, examination, experience, continuing education Under the current qualification criteria, an applicant for Appraiser Trainee must have completed ___ creditable hours of experience. --------- CORRECT ANSWER----------------- 0 "The sum of values for a variable in a sample or population divided by the number of items in the sample or population" is the definition of --------- CORRECT ANSWER-----------------Mean "A business arrangement in which two or more persons jointly own a business and share in its profits and losses" is the definition of --------- CORRECT ANSWER-----------------Partnership "A mortgage in which the interest rate may move up or down, following a specified schedule or in accordance with the movements of a standard or index to which it is tied" is the definition of a(n) ______________ mortgage. ---------CORRECT ANSWER-----------------Adjustable Rate The _____ has oversight authority over state appraisal boards. --------- CORRECT ANSWER-----------------ASC
"The ability of a property or building to be useful and to perform the function for which it is intended according to current market tastes and standards; the efficiency of a building's use in terms of architectural style, design and layout, traffic patterns, and the size and type of rooms" is the definition of -- -------CORRECT ANSWER-----------------Functional Utility A client has requested that an appraiser value a property that is improved with an old dilapidated single family home, and asks the appraiser not to mention the existence of the home in the appraisal report. Which statement is TRUE regarding this situation? ---------CORRECT ANSWER----------------- It would be misleading if the appraiser did not disclose the existence of this structure in the report. "The price expected for a whole property, e.g., a house, or a part of a property, e.g., a plumbing fixture, that is removed from the premises usually for use elsewhere" is the definition of ____________ value. --------- CORRECT ANSWER-----------------Salvage Reporting requirements for real property appraisers are set forth in STANDARD ___ of the Uniform Standards of Professional Appraisal Practice. ---------CORRECT ANSWER----------------- 2 The appraisal standards and qualification criteria that are published by The Appraisal Foundation achieve legal authority by adoption, citation or implementation by ---------CORRECT ANSWER-----------------Government agencies with the power to regulate or administrate The ________ is responsible for establishing criteria for individuals to become real property appraisers ---------CORRECT ANSWER----------------- Appraiser Qualification Board
The median price of homes sold in your county 6 months ago was $224,650. Prices have been increasing at the rate of 7% per year. What is the median price of homes today? ---------CORRECT ANSWER----------------
- $232, Forty percent of the houses in a neighborhood are Colonials and 18% are Cape Cods. There are a total of 200 houses. How many are Cape Cods? -- -------CORRECT ANSWER----------------- 36 Which of these factors would result in a violation of USPAP if the appraiser based his or her appraisal fee on it? ---------CORRECT ANSWER------------- ----the appraiser's value opinion You have found comparable sales of rural land parcels that indicate the following sale prices per acre: ($930, $775, $1202, $995, $1612, $906). What is the mode of these indications? ---------CORRECT ANSWER---------- -------There is no mode A purchaser bought a property for $176,000, put 10% down and borrowed the rest at 6.5% interest for 25 years. The lender charged 1.75 points at the closing. How much was paid for the points? ---------CORRECT ANSWER--- --------------$2, The ETHICS RULE of USPAP is the ________ of five Rules in USPAP. ---- -----CORRECT ANSWER-----------------First
Which is NOT an economic force affecting property values? --------- CORRECT ANSWER-----------------Transportation. Wage rates, expense levels and consumer price index affect economic forces. The primary operators in the secondary mortgage market include all of the following EXCEPT ---------CORRECT ANSWER-----------------FHA Which entity is responsible for making periodic changes to USPAP? - -------- CORRECT ANSWER-----------------Appraisal Standards Board What is the mean of these numbers: 124.5, 146.8, 152, 187.9, 153, 217.98, 12, 542.66, 45.7, 71.44, 158.04? ---------CORRECT ANSWER-----------------
The general rule of contracting with minors is that a contract with a minor is ---------CORRECT ANSWER-----------------Voidable at the minor's option "A market in which a drop in demand is accompanied by a relative oversupply and a decline in prices" is the definition of a(n) __________ market. ---------CORRECT ANSWER-----------------Depressed "A development right that cannot be used by the landowner, or that the owner chooses not to use, but can be sold to landowners in another location" are called _____________ rights. ---------CORRECT ANSWER---- -------------Transferable Development
Which of the following are examples of demand in a real property market? - --------CORRECT ANSWER-----------------Increasing immigration into the area, increasing building permits, decreasing vacancy rates, unemployment Two years ago, you bought a property for $264,500. Values increased in that area by 5% the first year and 7% the second year. How much is your property worth today? ---------CORRECT ANSWER-----------------$297, The intent of USPAP is to ____________ a high level of __________ in professional appraisal practice. ---------CORRECT ANSWER----------------- Promote and maintain, public trust "The right to construct and maintain tunnels, subways, subcellars, pipelines, sewers, etc." is the definition of _________ rights. --------- CORRECT ANSWER-----------------Subsurface An appraisal is best described as ---------CORRECT ANSWER----------------- An opinion of value Which statement about price, cost, and value is TRUE? ---------CORRECT ANSWER-----------------Price and value can be the same in some situations "A firm agreement to perform an act, refrain from acting or make a payment or delivery" is the definition of ---------CORRECT ANSWER----------------- Promise
The interest rate that banks charge when lending money to their highest rated customers is called the __________ rate. ---------CORRECT ANSWER-----------------Prime You have found comparable sales of rural land parcels that indicate the following sale prices per acre: ($930, $775, $1202, $995, $1612, $906). What is the median of these indications? ---------CORRECT ANSWER------- ----------$962. Which of the following is NOT a characteristic of land? ---------CORRECT ANSWER-----------------Mobility The appraisal standards and qualification criteria promulgated by the boards of The Appraisal Foundation achieves legal authority by adoption, citation or implementation by ---------CORRECT ANSWER----------------- Government Agencies Transportation would be an example of a(n) __________ force affecting property values. ---------CORRECT ANSWER-----------------Governmental The Federal Reserve can influence the level of economic activity by --------- CORRECT ANSWER-----------------Both of these: regulating the availability of money, and regulating the rate of interest. Here are all the sales in your area in the last 4 months. They sold for: $178,500; $166,000; $172,750; $182,000; $168,000; $174,000; $176,000; $184,000; $170,000; $175,000; $172,000; $181,500. What is the mean sale price? ---------CORRECT ANSWER-----------------$174,
An applicant who wishes to become a Certified Residential appraiser must have accumulated a minimum of ______ hours of appraisal education. ------ ---CORRECT ANSWER----------------- 200 How many experience hours are required to become a certified residential appraiser? ---------CORRECT ANSWER-----------------2500 in no fewer than 24 True or False: Attorneys often engage appraisers to complete assignments for estates and divorces. ---------CORRECT ANSWER-----------------True True or False: Of the required number of experience hours required for certified general appraiser applicants, at least 1,500 hours must be in the appraisal of non-residential property. ---------CORRECT ANSWER------------ -----True For licensed and certified real property appraisers, _____ class hours of continuing education are required each year. ---------CORRECT ANSWER-- ---------------14 hours The continuing education requirement in the 2008 criteria (compared to the previous criteria) ---------CORRECT ANSWER-----------------Remained Unchanged
The current AQB Real Property Appraiser Qualification Criteria went into effect ---------CORRECT ANSWER-----------------January 1, 2015 The Certified General Real Property Appraiser classification requires ____ hours of experience in no fewer than ___ months. ---------CORRECT ANSWER-----------------3,000, 30 Which of the following situations would NOT normally require an appraisal? ---------CORRECT ANSWER-----------------Title insurance The four components of the Appraiser Qualification Criteria include Continuing Education, Examination, ____________, and ______________. ---------CORRECT ANSWER-----------------Experience and Qualifying Education Which characteristic would NOT be associated with a good appraiser? ------ ---CORRECT ANSWER-----------------Biased The _____ is charged with establishing the qualifications that all the states must adopt in licensing, certification and re-certification of appraisers. ------- --CORRECT ANSWER-----------------The AQB Which is a true statement regarding appraiser examinations? --------- CORRECT ANSWER-----------------They are the same in every state with few exceptions
Which TAF advisory council consists of for-profit entities? --------- CORRECT ANSWER-----------------IAC True or False? Appraisal management companies (AMCs) are required to comply with the requirements of USPAP. ---------CORRECT ANSWER------- ----------False Who retains final authority over revisions to USPAP? ---------CORRECT ANSWER-----------------The Appraisal Standards Board Which board of The Appraisal Foundation is responsible for revising and editing USPAP? ---------CORRECT ANSWER-----------------ASB True or False? The guidance issued by the Appraisal Practices Board (APB) is binding on real property appraisers. ---------CORRECT ANSWER-- ---------------False True or False? The Dodd-Frank Act gave the ASC the authority to create a National Registry of appraisal management companies. ---------CORRECT ANSWER-----------------true True or False? The requirements of the Equal Credit Opportunity Act do NOT apply to residential second mortgages. ---------CORRECT ANSWER--- --------------False
True or False? The ASC is responsible for maintaining a National Registry of appraisers. ---------CORRECT ANSWER-----------------True Which of these is NOT a protected class, according to the Fair Housing Act? ---------CORRECT ANSWER-----------------Political party affiliation How is the Appraisal Subcommittee funded? ---------CORRECT ANSWER-- ---------------Through national registry fee charged to each appraiser Which entity is responsible for monitoring state appraiser licensing and certification agencies? ---------CORRECT ANSWER-----------------The appraisal subcommittee The Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) is also known as ---------CORRECT ANSWER-----------------The savings and loan bailout bill ECOA applies to all the following types of loans EXCEPT --------- CORRECT ANSWER-----------------Vacant Land There are ________ advisory Councils committees that provide research and advice to The Appraisal Foundation ---------CORRECT ANSWER-------- ---------Three
The _________ exercises all authority and power over the subject, style, content, and substance of USPAP. ---------CORRECT ANSWER--------------- --ASB The _____ monitors state appraisal boards. ---------CORRECT ANSWER--- --------------ASC The Fair Housing Act prohibits discrimination in housing because of all of the following statuses EXCEPT ---------CORRECT ANSWER----------------- Age Mortgage interest rates peaked in the U.S. in the ---------CORRECT ANSWER-----------------Early 1980s Which is NOT considered to be "other communications" offered by the ASB? ---------CORRECT ANSWER-----------------Comments on Appraisal Standards True or False? If not required to comply with USPAP by law, regulation, or agreement with the client, an appraiser may voluntarily choose to comply with USPAP. ---------CORRECT ANSWER-----------------true What term is defined as "relating to what is good or bad; having to do with moral duty and obligation"? ---------CORRECT ANSWER-----------------ethics
True or False? An appraiser who selects only the data that supports the contract sale price in an appraisal has violated USPAP. ---------CORRECT ANSWER-----------------true Ethics concerns our obligation to consider ---------CORRECT ANSWER------ -----------the well-being of society as a whole, the well-being of others, and our own personal well-being True or False? The mere fact that an appraiser has previously appraised a property is typically NOT considered confidential information under USPAP. ---------CORRECT ANSWER-----------------true True or False? It is unethical for an appraiser to pay a fee to be included on a lender's approved appraiser list. ---------CORRECT ANSWER----------------
- false When an appraiser discloses that she paid a fee for the procurement of an assignment, must she disclose the AMOUNT of the fee? ---------CORRECT ANSWER-----------------no A client has requested that an appraiser value a property that is improved with an old dilapidated single family home, and asks the appraiser not to mention the existence of the home in the appraisal report. Which statement is TRUE regarding this situation? ---------CORRECT ANSWER----------------- It would be misleading if the appraiser did not disclose the presence of this structure in the appraisal report.
