Preview Questions Real Estate Appraiser | Role Specific Skill

Question 1: What is the role of supply and demand in the fluctuation of real estate prices?

Which action should you take?

Choose only one option

Supply and demand do not impact prices

Supply does not influence prices

Excess supply leads to price increase

High demand and low supply drive prices

Question 2: How is the direct capitalization rate derived in property valuation?

Which action should you take?

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Gross rental income divided by market value

Depreciation costs divided by market value

Net operating income divided by property value

Sale price multiplied by market comparables

Question 3: In the income capitalization approach, what is the role of the capitalization rate?

Which action should you take?

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It converts net operating income into property value

It predicts future rental income

It measures physical depreciation

It adjusts market comparables

Question 4: How does the presence of a basement impact the property inspection process, particularly in terms of condition?

Which action should you take?

Choose only one option

Basements need a detailed assessment for water damage and mold

Only consider basement as additional living space

Appraisers don't assess basements in older homes

Basements are rarely inspected

Question 5: How do you assess the electrical systems during an inspection, and how do outdated systems impact the value of older properties?

Which action should you take?

Choose only one option

Electrical systems have minimal effect on property value in older homes

Outdated electrical systems require costly upgrades and reduce property value

They do not significantly affect the property value unless there is a safety issue

The value of a property is unaffected by electrical systems

Question 6: In assessing market trends, how does a high vacancy rate impact property values in a growing real estate market?

Which action should you take?

Choose only one option

It has no impact on the overall market trend

It may suggest a pending correction in the market, indicating a future decrease in property values

It reflects short-term market instability, with long-term effects on value

High vacancy rates indicate increased demand and future property appreciation