Arizona Real Estate License Property Valuation and Appraisal

Question 1

Which appraisal approach estimates value by calculating the cost to replace a structure minus depreciation plus land value?

Accepted Answer

Cost approach

Answer

Sales comparison approach

Answer

Income capitalization approach

Answer

Gross rent multiplier approach

Question 2

In Arizona, who is legally authorized to perform a federally related real estate appraisal?

Accepted Answer

A certified or licensed appraiser under the Arizona Board of Appraisal

Answer

Any licensed real estate agent

Answer

A real estate broker only

Answer

Any notary public

Question 3

What does 'capitalization rate' measure in real estate valuation?

Accepted Answer

The rate of return expected on an income-producing property

Answer

The ratio of mortgage payments to property value

Answer

The percentage of appreciation over time

Answer

The cost to build per square foot

Question 4

Which type of depreciation is caused by factors outside the property itself, such as a noisy highway nearby?

Accepted Answer

Economic obsolescence

Answer

Physical deterioration

Answer

Functional obsolescence

Answer

Structural depreciation

Question 5

An appraiser adjusts comparable sales to account for differences from the subject property. If a comparable has a feature the subject lacks, the appraiser should:

Accepted Answer

Subtract value from the comparable

Answer

Add value to the subject property

Answer

Add value to the comparable

Answer

Make no adjustment

Question 6

What is the primary purpose of the Uniform Standards of Professional Appraisal Practice (USPAP)?

Accepted Answer

To establish ethical and performance standards for appraisers

Answer

To set Arizona property tax rates

Answer

To regulate real estate agent commissions

Answer

To define zoning classifications