Practice Test Geeks(CCS) Certified Condominium Specialist Practice Test
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Property Valuation & Appraisal Flashcards

7 cards from real CCS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Property Valuation & Appraisal flashcards as text

  1. A condominium's monthly HOA fee is $600. In the sales comparison approach, how does an appraiser typically address this when a comparable has a $400/month HOA fee?

    Answer: Capitalize the $200/month difference to make a dollar adjustment

    Appraisers typically capitalize the monthly fee difference (e.g., multiply by 12 and apply a market-derived factor) to create a lump-sum adjustment.

  2. Which type of value is typically sought in a standard mortgage lending appraisal?

    Answer: Market value

    Lenders require an opinion of market value, defined as the most probable price in a competitive and open market under all conditions fair to buyer and seller.

  3. When appraising a newly constructed condominium with no directly comparable sales, which technique is most appropriate?

    Answer: Expand the search area or time frame and make market condition adjustments

    Appraisers should expand geographic or time parameters for comparables and apply time-adjustment factors to account for differing market conditions.

  4. The 'exposure time' in a condo appraisal refers to:

    Answer: The length of time a property would need to be marketed before selling at market value

    Exposure time is a retrospective estimate of how long the subject property would have needed to be on the market prior to the effective date to achieve the appraised value.

  5. A condo unit in a building with a pending special assessment for $15,000 in roof repairs is being appraised. How should the appraiser handle this?

    Answer: Disclose it and consider its impact on value and marketability

    Pending special assessments are material facts that affect marketability and value, and must be disclosed and analyzed in the appraisal report.

  6. What is the primary purpose of a condominium project review (such as Fannie Mae's PERS process)?

    Answer: To evaluate the financial health and eligibility of the condo project for agency financing

    Project reviews like PERS assess the condo project's legal, financial, and operational health to determine if loans secured by units qualify for agency purchase.

  7. In the cost approach, 'accrued depreciation' is defined as:

    Answer: The total loss in value from all causes as of the appraisal date

    Accrued depreciation is the total loss in value from the as-new cost due to physical deterioration, functional obsolescence, and external obsolescence combined.