Preview Questions Real Estate Appraiser | Role Specific Skill

Question 1: What is the primary consideration when using the income capitalization approach?

Which action should you take?

Choose only one option

Net Operating Income (NOI) and capitalization rate

Gross rent multiplier

Replacement cost minus depreciation

Comparable sales adjustments

Question 2: In an older property inspection, what is a key aspect to assess for potential future maintenance issues?

Which action should you take?

Choose only one option

Electrical system updates

Plumbing system material and condition

Roof insulation

Exterior paint quality

Question 3: In property appraisal, how should environmental factors such as pollution or hazardous material presence affect a property's valuation?

Which action should you take?

Choose only one option

Ignore environmental factors unless there are direct legal implications

Decrease value only if remediation costs are included in the appraisal

Adjust the value downward based on the severity and proximity of the environmental issue

Increase the value to compensate for perceived buyer interest

Question 4: In terms of insulation, how does the quality of attic insulation affect the market value of a property in an area with extreme winters?

Which action should you take?

Choose only one option

Poor attic insulation decreases the marketability but does not affect value

Attic insulation has no effect on property value

It only affects marketability in colder climates, not value

High-quality attic insulation can increase value by improving energy efficiency

Question 5: Which market trend is most likely to affect the commercial real estate market?

Which action should you take?

Choose only one option

Business profitability and expansion

Local government policies

Job market trends

Consumer sentiment

Question 6: Which of the following best describes direct capitalization in property appraisal?

Which action should you take?

Choose only one option

Using multiple years of projected income

Adjusting for market depreciation

Accounting for building permits

Valuing a property based on a single year's income