Texas Real Estate Appraisal Questions And Correct Detailed Answers (Verified Answers) Already Graded A+

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Texas Real Estate Appraisal Questions And Correct Detailed Answers (Verified Answers) Already Graded A+

• An appraiser just finished an appraisal for a new client. How long must he retain the

work file and the report?

• For at least five years
• For at least seven years
• For at least two years
• Varies

Correct Answer: a. For at least five years

• The principle of ______ says that value is created and maintained when the

characteristics of a property fit in with its surroundings.

• Anticipation
• Conformity
• Contribution
• Substitution

Correct Answer: b. Conformity

• What system uses a central exhaust fan and ducts to move stale air out of a

building?

• Air conditioning
• Forced air
• Heating
• Ventilation

Correct Answer: d. Ventilation

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• If a comparable property is situated in a more desirable neighborhood, for what

feature will an appraiser adjust the sales price when using the sales comparison approach?

• Date of sale
• Location
• Physical features
• Terms and conditions of sale

Correct Answer: b. Location

• A capitalization rate is the expected ______.
• Rate at which assets depreciate over time
• Rate of capital recapture
• Rate of return on investment
• Value of a business as an investment

Correct Answer: c. Rate of return on investment

• "Beginning at a stake and stones about 30 feet from the center of the brook that runs

across the road Southwesterly from the dwelling house of the late Henry Nelson ..." is an example of what type of legal description?

• Benchmark
• Lot and block
• Metes and bounds
• Rectangular

Correct Answer: c. Metes and bounds

• If an appraiser using the sales comparison approach adjusts for a change in market

value of 5% due to average property depreciation, what type of adjustment is the appraiser making?

• Dollar adjustment
• Gross adjustment
• Net adjustment

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• Percentage adjustment

Correct Answer: d. Percentage adjustment

• Rico is an appraiser who is performing a valuation on a property. What's another

term for what Rico is doing?

• Analytical exercise
• CMA
• Formal appraisal
• Price opinion

Correct Answer: c. Formal appraisal

• A lessee holds a ______ interest.
• Leased fee
• Leasehold estate
• Lease value
• Sandwich

Correct Answer: b. Leasehold estate

• When working with commercial properties, the appraiser develops an estimate of

market rent by ______ and comparing rents across the subject and comparable properties.

• Converting rental income to annual dollars per square foot
• Converting rental income to annual per room
• Using a gross income multiplier
• Using a gross rent multiplier

Correct Answer: a. Converting rental income to annual dollars per square foot

• Your cash buyer decides to waive the appraisal to sweeten his full-price offer. What

risk is involved here?

• One half of the buyer's earnest money is at risk.
• Other prospective buyers may also waive the appraisal.

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• The offer may not be accepted because the appraisal was waived.
• The property may be worth less than the list price.

Correct Answer: d. The property may be worth less than the list price.

• Which government agency is one of the primary enforcers of green regulations on a

national scale?

• The Commission on Environmental Quality
• The Environmental Protection Agency
• The National Security Agency
• The U.S. Department of Energy

Correct Answer: b. The Environmental Protection Agency

• Which of the following is an arm's length transaction?
• James buys his own listing.
• Meredith buys her mother's home.
• The buyer and seller are unknown to one another.
• Two neighbors trade houses.

Correct Answer: c. The buyer and seller are unknown to one another.

• When will a lessee realize the benefit of deficit rent by sub-leasing the property?
• When there is excess rent, causing a liability to the lessee
• When the scheduled rent and market rent are the same
• When the scheduled rent is higher than the market rent
• When the scheduled rent is lower than the market rent

Correct Answer: d. When the scheduled rent is lower than the market rent

• Carmen is a builder. Which of the following is true about construction codes as

they apply to her next project?

• Carmen must adhere to all federal, state, and local building codes, which are enforced at

the local level.

• Carmen must adhere to local, but not state or federal, building codes.