South Dakota Certified Appraiser Assessor (CAA) Practice Exam

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• Replacement costs are commonly used in which type of appraisal?
• The rectangular survey system established by the Land Ordinance of 1785 primarily uses which basic unit?
• Under the principle of substitution, what often determines a property's value?
• Which of the following is a physical characteristic that can affect a property's value?
• With a Potential Gross Income of $45,600 and a 3% vacancy loss, what is the Effective Gross Income?
• According to the principle of change, what does it mean when a property enters the disintegration stage?
• How many linear feet are in a mile?
• Which of the following methods is most time-consuming during the depreciation estimation process?
• How do you calculate the Replacement Cost New of a 2-story home measuring 28 x 60, at a rate of $100 per square foot?
• Which statement best describes the assessment of higher priced properties?
• In which scenario is it preferable to use replacement cost rather than reproduction cost?
• Which of the following duties is included in the assessment function?
• What is an example of an economic force affecting property value?
• Engineering Breakdown method measures depreciation based on what factor?
• In real estate, what does effective age indicate?
• What does the principle of competition indicate regarding excess profits?
• Which term describes a decrease in property value due to factors like age or outdated features?
• The concept of "highest and best use" primarily addresses what aspect of property value?
• What is the effective tax rate mentioned for the property in the analysis?
• Which of the following best describes a township's structure?
• What is the Sales Based Average Ratio?
• Latitude measures distance in relation to which location?
• Which of the following is the best way to identify a parcel of land?
• Which surveying is considered an open survey that starts at one location and ends at another?
• The annual property tax is primarily determined by which factors?
• An oversupply of properties in a neighborhood is an example of which type of obsolescence?
• What is the primary concern of an appraiser when determining market value?
• What is the impact of decreasing supply on property value when demand remains constant?
• What does the law of increasing returns suggest about property investments?
• In South Dakota, what is the term "assessed value" equivalent to?
• Which of the following is NOT one of the six rights often included in the 'bundle of rights'?
• In single property appraisal, how is value primarily determined?
• What do Operating Expenses refer to in property income analysis?
• Which of the following represents a calculation method for estimating property value?
• A farm containing 3200 acres is equivalent to how many sections?
• What does the principle of anticipation indicate about property value?
• What is the land rate calculated by adding the discount and effective tax rates?
• A property with an annual net income of $5,000 and a rate of return of 11% would have an indicated value of?
• What is the effective age used to estimate depreciation in the Overall (Age/Life) method?
• A residential building located near a junkyard may lose value due to which form of obsolescence?
• Which type of surveying disregards the curvature of the earth?
• For a property to have value, which of the following must be present?
• What does economic obsolescence refer to?
• What is a significant change in market conditions as it relates to property appraisal?
• Which of the following factors is typically associated with economic obsolescence?
• What is functional obsolescence in appraisal terms?
• What does the net operating income (NOI) of the property reflect in the provided analysis?
• What is the formula for calculating the value using the Cost Approach?
• What is the average rent if the rents for apartments are 1 @ $500, 2 @ $600, 2 @ $650, and 1 @ $750?
• In the application of the sales comparison approach, adjustments are based on what?
• The term 'Coefficient of Dispersion' refers to what?
• Given an annual Net Operating Income of $3,600 and a Capitalization Rate of 12%, what is the Market Value?
• What is the characteristic of the sale price of the subject in terms of comparison?
• What type of obsolescence is illustrated by an expressway constructed near a residential neighborhood leading to high traffic noise?
• What condition allows for the exclusion of a sale from the sales ratio study in South Dakota due to a change in use?
• What is the definition of "market price"?
• If the remaining economic life of a property is 40 years, what is the recapture rate?
• What is the Range in statistics regarding sales ratios?
• What does the appraisal-assessment ratio measure?
• What is Potential Gross Income?
• What defines an arms-length transaction?
• What is measured to determine the quality of assessments using the Coefficient of Dispersion?
• In which stage of property life would you expect relative stability?
• Which of the following is true regarding tangible property?
• What term is used to describe the loss in value due to factors external to the property?
• How do you estimate the value of an income-producing property?
• Which principle of value states that a property's value is influenced by how well it conforms to its surroundings?
• How long is the estimate of accrued depreciation of a property valid?
• How many square feet are in one acre?
• How is land classified in property terms?
• What is the purpose of calculating the average deviation in assessments?
• What key concept does the "principle of substitution" illustrate in property valuation?
• What are the two types of depreciation recognized in property assessment?
• Which principle of value is considered when assessing the potential returns on an investment over time?
• According to the information provided, how many acres are in the description N 1/2 N 1/2 NW 1/4, W 1/2 E 1/2?
• How is accounting depreciation defined in property assessment?
• Indirect costs commonly include which of the following?
• What does the term 'budget' refer to in the context of property taxation?
• What does 'Remaining Economic Life' signify?
• Sales Comparison method estimates depreciation based on what?
• Which type of costs includes overhead and profits?
• What is the basis for depreciation tables used in appraisal?
• How many acres are represented in the legal description E 1/2 W 1/2 NE 1/4?
• If the Effective Gross Income is $44,232 and the Operating Expenses are $22,400, what is the Net Income?
• Which methods are acceptable for valuing a site?
• What interest rate is typically associated with a second mortgage?
• Which of the following indicates a change of at least 10% in assessed value?
• Which factor is least likely to influence the value of a property?
• When appraising property, what is essential regarding the appraisal date?
• What is an example of intangible property?
• How is the Mean Assessment Ratio calculated?
• Which governmental force can impact the value of a property?
• When estimating property value using the comparative sales approach, what is the missing term in the formula: Value of comparable property (+) (-) ............ = estimate of value?
• What type of surveying is used to establish property corners and land lines?
• What does "market value" refer to?
• In calculating the median assessment ratio, what must you do first?
• In which situation would the cost of construction be considered economically justifiable?
• Which factor is included in the typical life expectancy of property improvements?
• What method is used to calculate depreciation in the case of buildings with a defined economic life?
• What is considered to have a significant impact on property values in a neighborhood?
• In South Dakota, how is the term "assessed value" defined?
• Which type of value considers the potential for future use and benefits?
• Curable physical deterioration refers to what type of issues?
• How is the Coefficient of Dispersion calculated?
• Which of the following is NOT an indirect method of estimating depreciation?
• What would be the Potential Gross Income for a property renting at $1.00 per sq. ft. for a 3,800 sq. ft. building annually?
• How many acres are found in the legal description of WEST 320' SOUTH 490' of the SE 1/4?
• In assessing physical obsolescence, which of the following factors is most relevant?
• What is required for a sale to be excluded from the sales ratio study due to major physical change?
• Increases in population in an area followed by increases in home building activity are examples of which principle?
• What is meant by 'bundle of rights' in property ownership?
• In property assessment, what does "full and true value" aim to represent?
• What does Ad Valorem mean?
• Which term refers to the individual discrepancies from the median in assessment ratio calculations?
• Which type of depreciation accounts for a property becoming less desirable due to changes in market trends?
• What does 'range' refer to in a dataset?
• If the median monthly rent is $500 and the median GRM is 114.3, what is the estimated value of the property?
• What does the term escheat refer to in property law?
• What defines the Comparative Unit Method of estimating costs?
• What characterizes the relationship of cost to value for new properties?
• What is the process used to find the Median Assessment Ratio?
• Which method estimates costs by calculating unit costs for each building component?
• Which of the following is NOT a step in the property assessment process?
• What is considered an example of incurable functional obsolescence?
• In the income approach, if V equals value, I equals annual income, and R equals required rate of return, what is the correct formula?
• What is the total square footage of a building with dimensions of 44' x 38' and 60' x 96'?
• How does conformity affect property value according to appraisal principles?
• Which term best describes the adjustment of values based on location and condition of a property?
• What does the term 'real estate' encompass?
• Which term describes the relationship between assessed values and actual selling prices in real estate?
• What is the right of 'taxation' in relation to property?
• Which coordinate system is primarily used for precise location on Earth's surface?
• A house that is physically sound but has outdated kitchen and bathroom fixtures is an example of what?
• Which of the following is NOT one of the four forces that affect property value?
• What does capitalization refer to in real estate?
• How is value estimated using the Gross Rent Multiplier?
• Which of the following best describes observed condition in relation to depreciation?
• Which is an example of curable functional obsolescence?
• Which of the following describes a township?
• In the context of property assessment, what determines the Remaining Economic Life?
• A kitchen sink is categorized as what type of property?
• How many zones cover the United States in the State Plane Coordinate system?
• What is the purpose of calculating reproduction costs in property assessment?
• A television set is an example of which type of property?
• According to the principle of change, what are the three life stages that properties go through?
• Which two types of obsolescence are commonly identified in real estate appraisals?
• The median is defined as which of the following?
• What phrase describes the collection of rights associated with property ownership?
• How is the Net Operating Income determined?
• Which government right allows for the taking of property for public use with compensation?
• Ms. Johnson's concern about a new apartment complex affecting her property value is an example of which principle?
• What process best describes the capitalization process in appraising properties?
• What does a proper legal description ensure in property appraisal?
• Which chapter of the South Dakota Codified Law is most relevant to the Director of Equalization?
• Total economic life can be divided into what two categories?
• What does Average Deviation represent in a set of property assessment ratios?
• What does the State Plane Coordinate system aim to minimize?
• Which resources can an Assessor use to calculate value based on the cost approach?
• What is Functional Obsolescence?
• What is Effective Gross Income?
• Which surveying type is utilized for preparing maps showing natural and artificial features?
• What does the Capitalization Rate represent in real estate?
• Which of the following best defines economic rent?
• If a property sold for $215,000 and has an annual Net Income of $25,000, what is the Capitalization Rate?
• What is meant by 'Effective Age' of a property improvement?
• Which surveying technique considers the curvature of the earth, suitable for large areas?
• What is the frontage of a lot defined as?
• If a jurisdiction has a total assessed property value of $50 million and property taxes of $4,500,000, what is the tax rate?
• What would you classify deteriorating roof shingles and damaged siding as?
• What is the required return on equity for the described property?
• What type of value is most commonly sought by appraisers?
• What does the term "market price" reflect in a property transaction?
• Which principle suggests that when there is high competition, the value of similar properties may decrease?
• Which method for estimating costs is considered the most accurate?
• What is implied by a lower Gross Rent Multiplier?
• Which physical force can directly influence property value?
• Which of the following is a type of private encumbrance that can affect fee simple ownership?
• How many square feet are there in an acre?
• A neighborhood can be described as?
• What is the principle of substitution in valuation?
• What type of surveying is generally a closed survey that starts and ends at the same point?
• A market that supports increasing prices as demand for property rises exemplifies which principle?
• What factor does not directly relate to functional obsolescence?
• Which condition represents incurable physical deterioration?
• A house with outdated plumbing fixtures is suffering from which type of obsolescence?
• What is the purpose of notifying property owners of the full and true value of their properties?
• What are the three primary approaches to determining property value?
• What does 'tangible property' refer to?
• In real estate investment, what does a higher Capitalization Rate indicate?
• Which type of depreciation is often referred to as deferred maintenance?
• In a property assessment, what does GRM help compare?
• What are the four government rights concerning property?
• The principle of anticipation in property valuation refers to what concept?
• What does a PRD below 1.00 suggest?
• Which of the following is considered intangible property?
• What is the total property value calculated from the building and land values?
• How is level of assessment defined?
• Excess competition in a market typically causes a decrease in:
• What are the four methods for estimating costs?
• If a building has a current reproduction cost of $50,000, an effective age of 20 years, and an economic life of 50 years, what would its value be after depreciation?
• How is the Sales to Assessment Ratio calculated?
• What does metes and bounds refer to?
• What is defined as the "assessment year" in South Dakota?
• If a property sells for $60,000 and is assessed at $48,000, what is the Sales to Assessment Ratio?
• If rents for apartments are 1 @ $500, 2 @ $600, 2 @ $650, and 1 @ $750, what is the range of rents?
• What is the taxable value based on?
• What is the formula for calculating income attributable to the land?
• What does 'fee simple absolute' signify in property ownership?
• Which type of costs includes materials, labor, and utilities?
• What is considered a fractional lot in the context of land surveying?
• What is the primary purpose of the sales comparison approach in appraisal?
• Buying a similar house three blocks from the area school instead of one closer is an example of which principle?
• Which type of costs are typically less visible in the construction process?
• Which of the following best illustrates the concept of supply and demand in real estate?
• How is the value of a component in a property assessed according to the principle of contribution?
• How can value be defined in economic terms?
• Which method separates depreciation into curable and incurable factors?
• The value created from the expectation of future benefits relates to which principle?
• What is the significance of desirability in property value assessment?
• What are the key factors that must be present for a property to have value?
• What type of obsolescence is caused by excessive partitions in an office building?
• Longitude is measured in reference to which line?
• In the context of the recapture rate, what is meant by a "remaining economic life"?
• Replacement costs are best defined as?
• What role does competition play in affecting property prices?
• Which principle states that the value of a replaceable property is set at the cost of an equally valuable substitute?
• Utility is a necessary condition for what aspect of property?
• Which type of surveying uses electronic signals from GPS satellites?
• Which rate is not applicable to land in the income approach to value?
• Which method involves describing property boundaries by angles referenced to compass points?
• Which of the following is a social force affecting property value?
• What is the indicated Market Value of a property with a Net Income of $21,832 and a Capitalization Rate of 12.5%?
• What is the primary focus of the principle of contribution in real estate?
• Which term describes the overall dimensions, boundaries, and attributes that identify a parcel of real property?
• Which principle suggests that properties should conform to surrounding properties for maximized value?
• What is the purpose of legal descriptions in real property?
• The principle that a property will have more value if used in a way similar to neighboring properties is known as?
• Which option is not associated with the appraisal definition of the highest and best use?
• What value is typically derived from subtracting total expenses from gross income?
• What does the Capitalization of Income method rely on for estimating depreciation?
• What kind of transaction is likely to be most valid for determining value?
• Which of the following best defines Physical Deterioration?
• If a parcel of land measures 200 feet by 140 feet, how many acres does it contain?
• Which of the following forces affect property value?
• Which term describes the income before accounting for vacancies and operating expenses?
• What is the essential purpose of mass appraisal?
• Sales data should not be used to determine value if?
• What is the area of a rectangular lot measuring sixty feet wide and eighty feet deep?
• Which right allows the government to regulate property for public welfare?
• What does the Trended Historical Cost Method rely on for cost estimation?
• The principle of conformity in real estate emphasizes what aspect?
• Which of the following is an example of physical deterioration?
• What is the annual depreciation percentage for a building with an economic life of 50 years?
• What does Direct Capitalization involve?
• If a property has an assessed value significantly lower than similar properties, how could it impact the PRD?
• What is a crucial attribute of a property for it to hold value?
• Observed Condition involves estimating depreciation based on what?
• What does 'escheat' refer to in property rights?
• What is meant by the term "highest and best use" in property valuation?
• How should land be appraised according to standard practices?
• What is deducted from the replacement cost new of an improvement in the cost approach to value?
• What is an article permanently attached to land or a building known as?
• What type of economic obsolescence is typically considered incurable?
• What does the term "typical life expectancy" refer to in property assessment?
• Which of the following is NOT an element of comparison in the Market Approach?
• What is the perimeter of a rectangular lot measuring forty-five feet wide and sixty-five feet deep?
• What is the resulting effect of significant competition in the property market?
• What does the effective tax rate represent?
• Which of the following is an example of curable physical deterioration?
• What is the Effective Tax Rate if the Assessment Ratio is 70% and the tax rate is $40 per thousand dollars of assessed value?
• If a building's total depreciation after 20 years amounts to $20,000, what is its calculation based on the straight line method?
• What is a "sales ratio" in real estate?
• Depreciation Tables are used to show what?
• What are the three general categories resulting in accrued depreciation?
• When appraising bare agricultural land, which comparison would be most appropriate?
• What does "full and true value" mean in property assessments?
• What happens when a property fails to conform to market standards?
• What is the main difference between single property appraisal and mass appraisal?
• What is the primary purpose of calculating the Coefficient of Dispersion?
• To achieve a 12% return on a $425,000 property, what Net Income is required?
• What does a Price Related Differential (PRD) greater than 1.00 indicate?
• What is the median rent for the apartments in the given example?
• What is the net operating income if the land value is $200,000 and the income attributed to the building is $80,000?
• What percentage of property value is typically covered by a first mortgage?
• Which method estimates depreciation based on a straight-line approach?
• Is it true or false that cubic foot is a unit of comparison when estimating the value of a site?
• What does Economic Obsolescence refer to in property assessment?
• What are the two primary classifications of costs in construction?
• According to the definition of market value, both parties involved are expected to be:
• Which property is classified as 'personal property'?
• What is a principal activity of an appraiser during the appraisal process?
• To find the mean assessment ratio, what is the first step?
• Which of the following is NOT a right of government in relation to property?
• When does the economic life of a property come to an end?
• Which appraisal approach is most commonly used in mass appraisal situations?
• What is the Gross Rent Multiplier (GRM) formula?
• Which term is associated with the highest probable sale price of a property?
• An appraiser's estimate of gross income is based on?
• How many linear feet are in a mile?
• What role does scarcity play in the value of a property?
• What is the maximum distortion error for the State Plane Coordinates?
• What does accrued depreciation indicate?
• In a dataset, what function does the median serve?
• What constitutes Net Income in real estate valuation?
• Which surveying method is used for the centerline and right-of-way of transportation lines?
• Which of the following is NOT a duty of the assessor?
• What system was developed to cover the U.S. with a flat grid network?
• What is the primary focus of Replacement Cost in appraisal?
• A crack in the foundation wall causing water seepage is an example of what kind of deterioration?
• Which method divides total costs by an appropriate unit like square footage?
• What is the combined discount rate given a 1st mortgage of 60% at 7% and a 2nd mortgage of 20% at 10%?
• Which of the following defines demand in the context of property value?
• What is the definition of 'real property'?
• In the sales comparison approach, adjustments are based on what?
• What type of deterioration refers to a loss of value caused by external factors, such as location or environmental changes?
• What is generally included in the definition of appraisal?
• A single family dwelling valued at $200,000 in a neighborhood with sales between $175,000 and $225,000 illustrates which principle?