Certified General Appraiser Exam Prep FREE Sample Exam

An older home will remain the best use for several years until a planned commercial corridor matures, after which redevelopment will be more productive. The current home use in the interim is best described as what?

A nonconforming use that must stop immediately

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Excess land

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Surplus land

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An interim use

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A distribution company spends $180,000 on a specialized loading addition that increases the property’s market value by $135,000. How much of the addition’s cost is not recovered in value?

$45,000

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$315,000

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$135,000

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$0

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When estimating retail demand in a trade area, an analyst multiplies trade-area population by average per-capita spending in a merchandise category. The product of that calculation represents:

The subject store's guaranteed sales

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The construction cost of new retail space

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Total category sales potential available to all competing stores in the trade area

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The tax base of the municipality

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The allocation method estimates site value by applying what kind of evidence to a total property value?

A typical ratio of land value to total property value from comparable improved sales

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The owner's original land purchase price in every case

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A capitalization rate taken from office buildings

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The building's remaining economic life

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A four-unit residential property is valued using a supported unit price of $48,000 of land value per acre applied to a 2.5-acre site in a related land analysis. What amount results?

$48,000

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$96,000

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$144,000

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$120,000

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Which element of comparison addresses a comparable that sold with an existing long-term lease at above-market rent on a small rental property?

Physical characteristics only

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Location only

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Economic characteristics and, where the lease encumbers the interest conveyed, rights conveyed

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Market conditions only

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Once all adjustments are made to one comparable, the resulting figure represents what?

The subject's final appraised value

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The price the comparable would have brought if it had been sold as-is

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That comparable's adjusted sale price — an indication of the subject's value derived from that one sale

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The average value of the neighborhood

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Under the Hoskold premise, an income stream requires a 9 percent yield rate plus recapture through a sinking fund earning a safe rate of 4 percent over 20 years, for which the sinking-fund factor is 0.0336. What capitalization rate applies to that stream?

9.00 percent

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10.68 percent

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12.36 percent

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13.00 percent

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A property produces net operating income of $45,000 and sold for $750,000. What overall capitalization rate is implied by that sale?

5 percent

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7 percent

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16.7 percent

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6 percent

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Laundry receipts and paid parking fees collected at an apartment property are ordinarily handled in the income analysis in which way?

They are excluded because only apartment rent can produce income

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They are deducted as a variable operating expense

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They are included as other income in arriving at effective gross income

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They are added after net operating income has been capitalized

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A holding period ends after year ten. Year-eleven net operating income is projected at $825,000 and the terminal capitalization rate is 6.5 percent. Selling costs are 3 percent of the gross sale price. What is the net reversion, rounded to the nearest hundred dollars?

$12,692,300

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$11,930,800

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$13,076,900

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$12,311,500

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After delivery, a client asks an appraiser to raise the reported value by $15,000, offering no new data. The appraiser may:

Not simply change the conclusion to please the client; any reconsideration must rest on analysis of relevant information

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Change it if the client signs an indemnity letter

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Change it once per assignment without documentation

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Issue a second report with both values and let the client choose

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Certified General Appraiser Exam Prep FREE Sample Exam — Fixed Set

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