CRM Property Valuation & Appraisal 4

Question 1

Which professional designation certifies an individual specifically to appraise residential properties up to four units?

Accepted Answer

Licensed Residential Appraiser

Answer

A Licensed Residential Appraiser is authorized to appraise non-complex one-to-four unit residential properties below a federally established threshold.

Question 2

What does a 'reconciliation' step involve at the conclusion of an appraisal?

Accepted Answer

Weighing the results of multiple valuation approaches to arrive at a final value opinion

Answer

Reconciliation is the appraiser's reasoned judgment process of weighing each approach's credibility to produce a single final value estimate.

Question 3

Under USPAP, what is the appraiser's obligation regarding a 'scope of work' determination?

Accepted Answer

The appraiser must identify and perform the scope of work necessary to produce credible assignment results

Answer

USPAP's Scope of Work Rule requires the appraiser to identify and complete the research and analysis necessary for credible results, regardless of client preferences.

Question 4

When a comparables adjustment grid shows a negative dollar adjustment for a feature on a comparable property, it means:

Accepted Answer

The comparable is superior in that feature relative to the subject

Answer

A negative adjustment on a comparable indicates the comparable is better than the subject in that feature, so its price must be reduced to reflect the subject's lesser quality.

Question 5

What is 'market rent' as used in residential property appraisal?

Accepted Answer

The rental income a property would command in the open market under competitive conditions

Answer

Market rent is the estimated rent a property would attract from knowledgeable tenants in a competitive, open market at a given date.

(CRM) Certified Residential Manager Practice Test

(CRM) Certified Residential Manager Practice Test

CRM Property Valuation & Appraisal 4