What is the net income ratio of a property where the potential gross income is $110,000; the vacancy and collection loss is estimated at $10,000, and the operating expenses are estimated at $30,000? a. 30% b. 142% c. 100% d. 70%

93. Appraisers performing appraisals for federally related transactions may be required to go beyond the scope of USPAP by

a. Conforming to even stricter standards b. Showing appropriate deductions for proposed construction, partially leased buildings, and tracts with unsold units. c. Be based on the definition of market value set forth in the regulation of the agency d. All of the above

89. Whether an Appraisal Report or a Restricted Appraisal Report is used should depend upon all of the following except:

a. The intended use and intended user(s) of the appraisal b. Which value approaches were used c. A mutual understanding of the differences between the reporting options d. The detail of disclosure needed

85. What is the net income ratio of a property where the potential gross income is $110,000; the vacancy and collection loss is estimated at $10,000; and the operating expenses are estimated at $30,000?

a. 30% b. 142% c. 100% d. 70%

72. By the cost approach, estimate the value of a 40-year-old, 2,000 square foot house, based on the following: House replacement cost $ 80/SF Garage cost (400 square feet) $ 30/SF Patio and yard improvements cost $ 15,000 Physical deterioration $ 27,000 Functional obsolescence (poor floor plan) $ 20,000 Land value from comparable sales $100,000 As indicated by the cost approach, the value of the described property is

a. $260,000 b. $287,000 c. $200,000 d. $240,000

71. A 20-year old property sells for $240,000. If the lot is worth $100,000 and the cost new for the building is $200,000, what is the annual rate of depreciation as indicated by the market?

a. 1.5% or $3,000 b. 2.5% or $5,000 c. 3.5% or $7,000 d. 4.5% or $9,000

70. The age-life method of estimating accrued depreciation suggests that

a. The age of the building depends on its life b. Annual value loss is proportional to the total life expectancy c. All buildings depreciate at the same rate d. Loss in value depends on market studies

68. Which type of value loss is attributed to causes lying within the property?

a. Functional obsolescence b. External obsolescence c. Economic obsolescence d. None of the above

69. An environmental study shows that nearby toxic wastes have affected the neighborhood market. What kind of loss in value might be experienced by the improved properties?

a. Physical deterioration b. Economic or external obsolescence c. Functional obsolescence d. Detrimental obsolescence

66. For a new residential structure being developed, the direct construction costs have been estimated at $140,000. If certain indirect costs of 15%, and a 25% builder’s overhead and profit are added, what is the total construction cost for this building? Assume that the profit applies to both direct and indirect costs given.

a. $201,250 b. $161,000 c. $140,000 d. $175,000

67. Also referred to as diminished utility, accrued depreciation is defined for appraisal purposes as

a. Deductions from value b. Total loss in value from cost as if new c. Original cost less book cost d. None of the above

62. Which of the following is not a typical reason for using the cost approach?

a. To appraise unusual or special-use properties b. To appraise older tract homes c. To check against the values estimated from the other approaches d. To suggest the value of new property

63. Of the four methods of estimating cost, which is the one most often used by appraisers?

a. Index method b. Unit-in-place method c. Comparative square-foot method d. Quantity survey method

60. A lower density zoning code in a high rent apartment neighborhood has changed the usual comparison units and rules of thumb for land value. If vacant apartment-zoned lots could formerly be developed to 12 units each, but now can be developed to only 6 units, what value change is likely?

a. A decrease in the value per square foot b. An increase in the value per buildable unit c. Both a and b are likely d. Neither a or b is likely

57. An opinion of highest and best use in a market value appraisal of a vacant parcel

a. Suggests the comparables b. Is required by USPAP c. Both of the above d. None of the above

32. Which of the following do not represent private restrictions?

a. Association Agreements b. Deed restrictions c. Zoning laws d. Leases

28. The highest and best use of a property is defined by:

a. It’s current use b. The use that the owner intends for the property c. The development patterns in the broader city or county d. The use that provides the most economic benefit under given restrictions