Preview Questions Real Estate Appraiser | Role Specific Skill

Question 1: What effect does gentrification have on property valuations in certain urban areas?

Which action should you take?

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Leads to an increase in property value

Has no significant impact

Reduces the property value

Leads to a temporary drop in value

Question 2: What is the difference between the gross rent multiplier (GRM) and capitalization rate (Cap Rate), and in which scenarios should each be used?

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Both GRM and Cap Rate are used interchangeably

GRM focuses on property size, while Cap Rate focuses on income potential

GRM is based on gross income, while Cap Rate accounts for net income and expenses

GRM is used for commercial properties, while Cap Rate is used for residential properties

Question 3: When evaluating a property in a flood zone, what legal documentation should be included in the appraisal report to ensure compliance with regulations?

Which action should you take?

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The property's flood zone status has no impact if the property is not insured

Flood zone status should be documented, and flood insurance requirements should be included

Flood zone status is irrelevant unless the property has experienced flooding

Only a FEMA map is required for flood zones, not additional documentation

Question 4: How does a septic system inspection impact the appraisal of a property located in a rural area?

Which action should you take?

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It has no impact on property value

It's only relevant for new constructions

It's critical to confirm functionality and compliance

It could increase the value if well-maintained

Question 5: How do market conditions adjustments impact property appraisal?

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They only apply to industrial properties

They align past comparable sales with current market conditions

They account for inflation only

They are rarely used in residential appraisals

Question 6: How is the structural integrity of load-bearing walls determined during inspection?

Which action should you take?

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Thickness of the wall

Type of materials used

Alignment with blueprints

Presence of stress cracks or buckling