Preview Questions Real Estate Appraiser | Role Specific Skill

Question 1: Which market trend indicator is most crucial when analyzing housing market cycles?

Which action should you take?

Choose only one option

Inventory-to-sales ratio

Seasonal sales fluctuation

Mortgage interest rates

Average days on market

Question 2: What is a key element of a lease agreement in real estate documentation?

Which action should you take?

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Payment terms and tenant obligations

Valuation method

Property inspection dates

Description of zoning laws

Question 3: What is the impact of energy efficiency features during a property inspection on appraisal value in high-demand markets?

Which action should you take?

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They reduce marketability due to high installation costs

Energy-efficient features can increase value by attracting buyers looking for lower utility costs

They have no measurable effect on property values in high-demand markets

Energy features do not impact appraisal unless they are highly visible

Question 4: How would you assess cosmetic damages (e.g., peeling paint, scratched floors) during a property inspection, and how do they influence the appraisal?

Which action should you take?

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They increase value by suggesting the property is lived in

They have minimal impact on value and are mostly considered aesthetic issues

Cosmetic damages only affect properties in poor locations

Cosmetic damages usually decrease the property value due to the costs of repairs

Question 5: How do pest infestations during a property inspection affect the market value of a home, especially in areas with high humidity or older buildings?

Which action should you take?

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Pest infestations can lead to significant damage, lowering the value of the property

Pests generally increase the property's value due to low renovation costs

Pests only affect property value if they are visible or pose health risks

They have no impact on market value unless there is structural damage

Question 6: What is the significance of reviewing a title insurance policy when appraising a property?

Which action should you take?

Choose only one option

It confirms the property's compliance with local regulations

It guarantees the property is free of liens

It ensures that the property's title is clear, which impacts the marketability

It guarantees the property's valuation