ASA Real Property Appraisal Concepts

Question 1

Which principle holds that the value of a property is affected by, and affects, the value of surrounding properties?

Accepted Answer

Principle of conformity

Answer

Principle of substitution

Answer

Principle of contribution

Answer

Principle of anticipation

Question 2

The principle of substitution states that a buyer will pay no more for a property than the cost of acquiring an equally desirable substitute. This principle underpins which approach?

Accepted Answer

All three approaches to value

Answer

Cost approach only

Answer

Sales comparison approach only

Answer

Income approach only

Question 3

Highest and best use analysis requires that the use be legally permissible, physically possible, financially feasible, and:

Accepted Answer

Maximally productive

Answer

Environmentally compliant

Answer

Approved by local zoning authorities

Answer

Currently in use

Question 4

In real property appraisal, 'effective age' refers to:

Accepted Answer

The age of a property as indicated by its condition and utility

Answer

The actual chronological age since construction

Answer

The remaining economic life of the building

Answer

The age stated in the building permit

Question 5

Which type of depreciation results from factors outside the property, such as proximity to a nuisance?

Accepted Answer

External (economic) obsolescence

Answer

Functional obsolescence

Answer

Physical deterioration

Answer

Curable depreciation

Question 6

The sales comparison approach adjusts comparable sales to the subject property by applying adjustments that are:

Accepted Answer

Added when the comparable is inferior and subtracted when the comparable is superior

Answer

Added when the comparable is superior and subtracted when the comparable is inferior

Answer

Always applied as percentage adjustments

Answer

Determined solely by paired data analysis