Real Estate License Practice Test - Property Valuation and Appraisal

Question 1

What is the objective of most appraisals?

Accepted Answer

determining market value of a property

Answer

determining investment value of a property

Answer

determining loan value of a property

Answer

determining insurance value of a property

Question 2

Market value is the same as ____.

Accepted Answer

mortgage value

Answer

insurable value

Answer

assessed value

Answer

investment value

Question 3

The sales comparison approach to valuation is directly related to ____.

Accepted Answer

the quality and amount of sales data available

Answer

market investment return rates

Answer

the principle of anticipation

Answer

the principle of substitution

Question 4

Jane is depositing $400 dollars in a savings account in hopes of earning interest. If the rate of interest is 6%, and she keeps the money in her account for 5 years, what would her balance be at the end of the 5 year period?

Accepted Answer

$535.29

Answer

$4194.30

Answer

$424.06

Answer

$2000.00

Question 5

Of the following, who can perform an appraisal?

Accepted Answer

real estate appraiser

Answer

real estate broker

Answer

real estate agent

Answer

all of these

Question 6

How is land different than other property assets?

Accepted Answer

It is fixed and immobile.

Answer

It can not depreciate.

Answer

It retains its value better than other property assets.

Answer

Its value is not tied to nearby housing values.