CRPA Relocation Appraisal Methodology & Terminology

Question 1

What is the purpose of a relocation appraisal?

Accepted Answer

To estimate a quick-sale value for relocation purposes

Answer

To estimate the cost of construction.

Answer

To determine a property's rental rate.

Answer

To calculate market rent.

Question 2

Which term refers to the most probable selling price in a relocation appraisal?

Accepted Answer

Anticipated sales price

Answer

Assessed value.

Answer

Replacement cost.

Answer

Loan-to-value ratio.

Question 3

What approach is most often used in relocation appraisals?

Accepted Answer

Sales comparison approach

Answer

Cost approach.

Answer

Income capitalization approach.

Answer

Depreciated replacement cost.

Question 4

Why is market trend analysis important in relocation appraisal?

Accepted Answer

To adjust valuation for economic shifts

Answer

To calculate tax obligations.

Answer

To forecast construction delays.

Answer

To measure building permits issued.

Question 5

What does the term 'as-is value' mean?

Accepted Answer

Current condition value without changes

Answer

Value after renovations.

Answer

Value including furnishings.

Answer

Value based on future projections.

Question 6

What is a key characteristic of a comparable property?

Accepted Answer

It should share similar attributes with the subject property

Answer

It must be in a different city.

Answer

It must be under foreclosure.

Answer

It must be new construction.

Question 7

Why is time adjustment applied in appraisals?

Accepted Answer

To reflect changing market conditions over time

Answer

To change property location.

Answer

To calculate annual taxes.

Answer

To assess future building permits.

Question 8

What role does the Uniform Standards of Professional Appraisal Practice (USPAP) play?

Accepted Answer

It sets appraisal ethics and standards

Answer

It regulates home mortgages.

Answer

It insures the appraiser.

Answer

It establishes insurance policies.

Question 9

What does 'subject property' refer to in appraisal?

Accepted Answer

The property being appraised

Answer

A neighboring building.

Answer

The appraiser’s office.

Answer

A comparable home.