Preview Questions Real Estate Appraiser | Role Specific Skill

Question 1: How are encroachments typically addressed in legal property documentation?

Which action should you take?

Choose only one option

By mentioning them in lease agreements

Through property appraisals

By including them in zoning permits

By documenting them in title reports

Question 2: What legal document is essential when appraising a property in a co-op building?

Which action should you take?

Choose only one option

The lease agreement

The property's zoning certificate

The co-op board's rules and regulations

The mortgage deed

Question 3: Which method is best for valuing a unique, custom-built property?

Which action should you take?

Choose only one option

Cost Approach

Sales Comparison Approach

Hedonic Pricing Model

Income Capitalization Approach

Question 4: Which metric best predicts future market trends in a specific location?

Which action should you take?

Choose only one option

Pending home sales

Vacancy rates

Historical sales volume

Rental yields

Question 5: When using the income approach, why is it critical to project vacancy and collection losses?

Which action should you take?

Choose only one option

To avoid overestimating NOI

To simplify the appraisal process

To eliminate irrelevant expenses

To reduce property tax liability

Question 6: How do you calculate depreciation for a commercial property using the Cost Approach when the property is 20 years old but recently renovated?

Which action should you take?

Choose only one option

Use a fixed depreciation percentage per year

Ignore depreciation if the renovations are significant

Estimate depreciation based on the remaining useful life and adjust for improvements

Use the age of the building to determine depreciation without considering renovations