Preview Questions Real Estate Appraiser | Role Specific Skill

Question 1: What is the most common method to estimate land value in a highly urbanized area?

Which action should you take?

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Extraction method

Sales comparison approach

Cost approach

Income approach

Question 2: What is the primary risk of using median price trends as the sole market indicator?

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It reflects short-term fluctuations

It is difficult to calculate

It doesn't account for changes in property characteristics

It requires seasonally adjusted data

Question 3: How do market conditions adjustments impact property appraisal?

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They only apply to industrial properties

They align past comparable sales with current market conditions

They account for inflation only

They are rarely used in residential appraisals

Question 4: When analyzing market trends, how would regional economic performance influence the valuation of real estate in suburban areas compared to urban areas?

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Economic downturns affect both urban and suburban areas similarly

Economic growth in urban areas increases suburban property demand

Economic growth in regional areas increases suburban property demand more than urban demand

Economic performance has no effect on property demand in suburban areas

Question 5: When performing a highest and best use analysis, which of these factors is least relevant?

Which action should you take?

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Financial feasibility

Owner's intended use

Legal permissibility

Physical possibility

Question 6: During a property inspection, how do you assess moisture intrusion in the walls, and what effect does it have on long-term property value?

Which action should you take?

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Moisture intrusion only affects immediate aesthetics and does not influence long-term value

It can increase property value by indicating the need for renovation

Moisture intrusion leads to higher marketability due to its scarcity

Moisture can lead to mold, decreasing long-term value and requiring remediation