Preview Questions Real Estate Appraiser | Role Specific Skill

Question 1: Which of the following best represents functional obsolescence in property valuation?

Which action should you take?

Choose only one option

Outdated design or features that reduce utility

Poorly maintained landscaping

Zoning non-compliance

Noise from external sources

Question 2: What is the significance of reviewing a title insurance policy when appraising a property?

Which action should you take?

Choose only one option

It confirms the property's compliance with local regulations

It guarantees the property is free of liens

It ensures that the property's title is clear, which impacts the marketability

It guarantees the property's valuation

Question 3: When a market shows signs of overheating, what are the indicators of price correction in the real estate market, based on historical trends?

Which action should you take?

Choose only one option

Lower transaction volumes suggest an overheated market

Rising property prices without corresponding increases in income or rent

Rising vacancy rates and increasing interest rates signal an impending market correction

Increased construction without demand growth leads to corrections

Question 4: Which market trend indicator is most crucial when analyzing housing market cycles?

Which action should you take?

Choose only one option

Inventory-to-sales ratio

Seasonal sales fluctuation

Mortgage interest rates

Average days on market

Question 5: How can one detect improper drainage around a property?

Which action should you take?

Choose only one option

Signs of soil erosion or water pooling near the foundation

Vegetation growth near walls

Water pooling near HVAC units

Crack patterns in concrete paths

Question 6: How does the Band of Investment technique estimate capitalization rates?

Which action should you take?

Choose only one option

By using current tax rates

By dividing net income by operating costs

By analyzing comparable property sales

By combining mortgage and equity requirements