CRU CRU Property Appraisal & Valuation

Question 1

Which appraisal approach estimates a property's value by analyzing the cost to replace or reproduce the improvements minus depreciation, plus land value?

Accepted Answer

Cost approach

Answer

Sales comparison approach

Answer

Income capitalization approach

Answer

Gross rent multiplier approach

Question 2

An appraiser identifies three comparable sales that bracket the subject property's value. What is the primary purpose of 'bracketing' in the sales comparison approach?

Accepted Answer

To ensure comparables bound the subject above and below in key characteristics

Answer

To average the three sale prices together

Answer

To exclude outlier sales from analysis

Answer

To meet USPAP minimum comparable count requirements

Question 3

Which of the following best describes 'effective age' in a residential appraisal?

Accepted Answer

The age implied by the property's condition and utility relative to new construction

Answer

The actual number of years since the home was built

Answer

The age used by the IRS for depreciation schedules

Answer

The date of the last major renovation

Question 4

A residential property has a swimming pool while none of the comparable sales do. How should the underwriter treat this during appraisal review?

Accepted Answer

Require the appraiser to add a positive adjustment to the comparables

Answer

Reject the appraisal for lack of comparable pools

Answer

Accept the appraisal only if the pool is in-ground

Answer

Ignore the pool since amenities have no market value

Question 5

Under FNMA guidelines, what is the maximum age of an appraisal report that can be used for a conventional loan at the time of note date?

Accepted Answer

6 months for existing and 12 months for new construction

Answer

90 days for existing construction

Answer

12 months for all property types

Answer

180 days for all property types

Question 6

Which form is most commonly used by appraisers for a standard single-family residential appraisal on a conventional loan?

Accepted Answer

Form 1004

Answer

Form 1025

Answer

Form 1073

Answer

Form 2055