Certified Residential Appraiser Exam Prep FREE Sample Exam

Why must highest and best use be determined before selecting an approach emphasis for a home on an oversized lot with surplus land?

It replaces the need for any market data

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The use conclusion determines how the land and any surplus are valued and which data are comparable

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It sets the tax assessment

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It determines the loan interest rate

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A buyer expects to hold a rental home for appreciation and rent growth rather than current cash flow alone. The purchase price is most influenced by:

Escheat

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Conformity

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Anticipation

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Severance

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Total expected demand in a market area is 300 households in a year. A project needs 60 of those households to fill. What capture rate does the project require?

20%

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5%

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60%

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360%

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Market value also assumes the property has had:

No exposure to any buyer

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Reasonable exposure time in the open market

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A forced auction with one day of advertising

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Exposure only to family members

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A lot contains 21780 square feet. Expressed in acres, this is what?

0.5 acre

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1.0 acre

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0.25 acre

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2.0 acres

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A proposed subdivision will contain 40 finished lots expected to sell for $55,000 each. What is the gross retail value of the lots before costs and discounting?

$2,750,000

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$550,000

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$2,200,000

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$1,650,000

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For a two- to four-unit residential property, which unit of comparison is often most meaningful to buyers and appraisers?

Price per unit (per dwelling unit)

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Price per square foot of lot only

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Price per year of age

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Price per window

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A comparable’s site is 9,000 square feet; the subject’s site is 7,500 square feet, and larger sites command a premium in this market. The direction of the site-size adjustment to the comparable is what?

Positive, because the comparable's lot is bigger

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No adjustment, because both lots are buildable

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Negative, because the comparable is superior in site size and is adjusted downward toward the subject

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Applied to the subject instead of the comparable

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Paired sales differing only in garage count sell for $438,000 (2-car) and $452,000 (3-car). The supported per-bay adjustment, before considering other differences in a subject grid, is:

$14,000

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$7,000

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$28,000

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$452,000

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Paired-data analysis for depreciation requires the pair to be alike except for:

Every physical and locational characteristic, so no adjustment is possible

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The sale date, financing, and conditions of sale combined

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The single characteristic whose value or depreciation effect is being isolated

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Their land values, which must be unknown

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A client tells an appraiser, ‘We need at least $420,000 on this one or the deal dies — just get us there.’ The appraiser’s proper response is to:

Meet the figure if comparable sales can be stretched to reach it

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Withdraw automatically, since the remark voids the engagement

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Report a range whose top end reaches the figure

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Decline the condition and develop an unbiased opinion, or not accept the assignment on those terms

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A desktop appraisal with no inspection is requested for a low-risk refinance, and the appraiser determines credible results are achievable with reliable data sources. Accepting this scope is:

Permissible, provided the scope is appropriate for the intended use, is disclosed, and produces credible results

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Prohibited because every appraisal requires an interior inspection

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Permissible only if the report hides the lack of inspection

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A jurisdictional exception

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Certified Residential Appraiser Exam Prep FREE Sample Exam — Fixed Set

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