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Candidate HandbookARIZONAMISSED APPOINTMENTSAND FORFEITURESYou will forfeit your examination registration and allfees paid to take the examination under the followingcircumstances. A new, complete application andexamination fee are required to reapply for theexamination. You wish to reschedule an examination but fail to contactPSI at least two business days prior to your scheduledtesting session. You wish to reschedule a second time. You appear more than 15 minutes late for yourexamination. You fail to report for your examination appointment.INCLEMENT WEATHER, POWERFAILURE OR EMERGENCYIn the event of inclement weather or unforeseenemergencies on the day of an examination, PSI willdetermine whether circumstances warrant the cancellation,and subsequent rescheduling, of an examination. Theexamination will usually not be rescheduled if the TestCenter personnel are able to open the Test Center.You may visit www.psionline.com/openings prior tothe examination to determine if PSI has been advisedthat any Test Centers are closed. Every attempt is madeto administer the examination as scheduled; however,should an examination be canceled at a Test Center, allscheduled candidates will receive notification followingthe examination regarding rescheduling or reapplicationprocedures.If power to a Test Center is temporarily interrupted duringan administration, your examination will be restarted. Theresponses provided up to the point of interruption will beintact.NO REFUNDSIf you fail to arrive at the Test Center on the date and timeyou are scheduled for examination you will not be refundedany portion of your examination fee and must reregister bycontacting PSI; examination fees may NOT be transferredto another appointment.If you arrive more than 15 minutes late for an appointmentyou will not be admitted, will forfeit your examination fee,and must reregister for the examination by contacting PSI.4

Candidate HandbookARIZONAEXAMINATION CONTENTContent Area DescriptionLR4. Sales Comparison Approach22%A. Identification of comparable salesB. Units of comparisonC. Elements of comparisonD. Quantitative adjustmentsE. Qualitative adjustmentsF. Reconciliation to indicated value by the salescomparison approach5. Cost Approach13%A. Sources of cost informationB. Cost componentsC. DepreciationD. Methods of estimating depreciationE. Reconciliation to indicated value by the costapproach6. Income Approach4%A. Sources of income generationB. Occupancy / vacancy analysisC. ExpensesD. CapitalizationE. Estimation of value using income approachF. Reconciliation to indicated value by theincome approach7. Reconciliation of Value Indications2%A. Reconciliation of approaches to value8. Uniform Standards of Professional AppraisalPractice20%A. Definitions and preambleB. Ethics ruleC. Record keeping ruleD. Competency ruleE. Scope of work ruleF. Jurisdictional exception ruleG. Standard 1H. Standard 2I. Standard 3J. Standard 4K. USPAP advisory opinions and FAQsL. Extraordinary assumptionM. Hypothetical condition9. Emerging Appraisal Methods3%A. Application of online property information databaseand technological toolsB. Appropriate use and limitations of the hybrid/bifurcatedappraisal methodC. Use and limitations of automated valuation models10. Appraisal Statistical Methods4%A. Statistical measures of central tendencyB. Statistical measures of variationC. Inferential statistical techniques used in appraisingTo begin your preparation in an informed and organizedmanner, it is important to know what to expect from theactual examination in terms of the content. Informationregarding the content of the examination you will be takingis presented in the following sections. Appraiser Examination SpecificationsThe examination specifications and the detailedcontent outline have been established by the AppraiserQualifications Board (AQB). The authority for the AQBto set standards and approve examination content wasestablished by Title XI of the Financial Institutions Reform,Recovery, and Enforcement Act of 1989.The Licensed Residential, Certified Residential andCertified General examinations are based upon 10 majorcontent areas. Although the topics of the major contentareas are the same for both of the examinations, theemphasis devoted to the content areas differs in eachexamination.Each of the content areas is briefly described below and isfollowed by an outline of the topics it includes. In addition,the percentage of questions devoted to both examinationsis indicated for each major content area. The LicensedResidential, Certified Residential and the CertifiedGeneral examinations each contain 125 questions. Inaddition to the 110 items used to determine your score,the examinations may contain up to 15 questions thatare being pretested for use in future versions of theexamination. Pretest items are not identified and are notincluded in your score.Content OutlineContent Area DescriptionLR CR CG1. Real Estate Market18% 18% 18%A. Types of influences on real estate valueB. Types of government powerC. Types of real estate valueD. Date of value premiseE. Market analysisF. Investment analysisG. Tests of highest and best useH. Analysis of highest and best use2. Property Description11% 12% 11%A. Description of land or siteB. Description of improvements and building componentsC. Legal interestD. Rights to useE. Property taxation3. Land or Site Valuation3% 3% 4%A. Land or site valuation methods5CR CG18% 13%14% 11%8% 18%2%2%18% 17%4%3%3%3%

Candidate HandbookARIZONA3. During the research of a subject property an appraiserlearns the occupants (parents) have been granteda life estate by their children. What interest do thechildren hold in the property? Sample QuestionsThe following illustrate the type of questions used in theexaminations. These sample questions do not representthe full range of content or difficulty levels contained inthe examinations. They are intended to help you becomefamiliar with the types and format of questions on theexamination. Read each question and decide whichanswer is best. You may then check your answers with theanswer key that follows.A.B.C.D.4. A homeowner purchased two adjacent lots in a tractsubdivision 20 years ago and built a single-unitresidence entirely on one lot, utilizing the second lotas a side yard. The homeowner has decided to builda smaller home on the vacant side lot and retain theexisting home as a rental. What term applies to thesecond yard?1. The subject property is a 10,000 sf office buildingencumbered by a full-service lease with a contractbase rent of 1.25 per sf monthly. Stabilized vacancy/credit loss allowance for similar properties within themarket area is 7% of PGI. The operating expense ratiofor similar properties is 30% of EGI, plus reserves forreplacement of 0.15 per sf. Based on these facts,what is the projected net operating income?A.B.C.D.A.B.C.D. 97,650 93,000 96,150 94,500Surplus landVacant siteExcess landUnderutilized site5. The subject assignment is to appraise a 1880s vintagehouse using the cost approach. The house has metalstamped ceilings, lath and plaster walls, which areitems not easily available in today’s construction. Theestimated replacement cost using modern materialsis 120 per sf. Contractors charge 15 more per sfto work on older houses. The estimated reproductioncost is 185 per sf. What is the estimated loss inutility?2. The assignment is a warehouse located in anindustrial park. The client requires the cost approachbe completed. There are no vacant land comparablesin the market area. There are 3 sales of commercialbuildings in the industrial park with similar lots that theappraiser has researched extensively. The appraiserfound the following information:A. 65 per sfB. 33 per sfC. 80 per sfD. 15 per sfSale 1 sold for 1,750,000. The buyer allocated 20%of the value to the site and 80% to the value of thestructure.Sale 2 sold for 1,000,000. The buyer was notavailable for verification, but the seller was available.The seller had just built the structure after holding thelot for 10 years as an investment property. He paid 100,000 for the lot and had earned 25% straight lineannual return on his investment over the cost of thestructure and its entrepreneurial profit.6. While working on an appraisal of a residentialproperty in a new home subdivision, the appraiserfinds that the builders have a total of 100 homesites currently offered for sale. In measuring marketdemand the appraiser notes that all of the builders arecurrently averaging 2 new sales contracts per month(combined), and are expecting to sell 24 homes withinthe next year. What conclusion could be drawn withregard to the 100 available home sites and a marketperiod of the next 12 months?Sale 3 sold for 3,500,000. The buyer estimated that90% of what he paid was for the structure.What is the indicated value of the lot using theallocation approach?A.B.C.D.RemaindermanLife tenantTrusteeTrustorA. The marketdemand.B. The marketC. The marketD. The market 350,000 500,000 135,000 125,000is in a condition of supply andis in a condition of balance.is in a condition of oversupply.is in a condition of 6. C

Candidate HandbookARIZONATAKING THE EXAMINATION Personal BelongingsNo personal items, valuables or weapons should bebrought to the Test Center. Only wallets and keys arepermitted. Large coats and jackets must be left outsidethe testing room. You will be provided a soft locker tostore your wallet and/or keys with you in the testing room.The proctor will lock the soft locker prior to you enteringthe testing room. You will not have access to these itemsuntil after the examination is completed. Please note thefollowing items will not be allowed in the testing roomexcept securely locked in the soft locker.Your examination will be given via computer at a PSITest Center. You do not need any computer experienceor typing skills to take the computer examination. On theday of your examination appointment, report to the TestCenter 30 minutes before your scheduled testing time.IF YOU ARRIVE MORE THAN 15 MINUTES AFTERTHE SCHEDULED TESTING TIME, YOU WILL NOT BEADMITTED. Identification watchesTo gain admission to the Test Center, you must presenttwo forms of identification. The primary form must begovernment issued, current and include your name,signature and photograph. No form of temporaryidentification will be accepted. You will also be requiredto sign a roster for verification of identity. hats wallets keysOnce you have placed your personal belongings into thesoft locker, you will be asked to pull out your pockets toensure they are empty. If you bring personal items thatwill not fit in the soft locker, you will not be able to test.The site will not store or be responsible for your personalbelongings. Examples of valid primary forms of identification are:driver’s license with photograph; state identification cardwith photograph; passport; military identification cardwith photograph. The secondary form of identification must display yourname and signature for signature verification (e.g., creditcard with signature, social security card with signature,employment/student ID card with signature).If any personal items are observed or heard (e.g., cellular/smart phones, alarms) in the testing room after theexamination is started, you will be dismissed and theadministration will be forfeited. If your name on your registration is different than itappears on your identification, you must bring proofof your name change (e.g., marriage license, divorcedecree or court order). Examination Restrictions Pencils will be provided during check-in. Security You will be provided with five pieces of scratch paper ata time to use during the examination, unless noted onthe sign-in roster for a particular candidate. You mustreturn the scratch paper to the proctor at the completionof testing or you will not receive your score report.PSI administration and security standards are designed toensure all candidates are provided the same opportunity todemonstrate their abilities. The Test Center is continuouslymonitored by audio and video surveillance equipment forsecurity purposes. No documents or notes of any kind may be removedfrom the Test Center.The following security procedures apply during theexamination: No questions concerning the content of the examinationmay be asked during the examination. Examinations are proprietary. No cameras, notes, taperecorders, pagers or cellular/smart phones are allowedin the testing room. Possession of a cellular/smart phoneor other electronic devices is strictly prohibited and willresult in dismissal from the examination. Eating, drinking or smoking is not permitted in the TestCenter. You may take a break whenever you wish, but you willnot be allowed additional time to make up for time lostduring breaks. Only silent, non-programmable calculators without alphakeys or printing capabilities are allowed in the testingroom. No guests, visitors or family members are allowed in thetesting room or reception areas.7

Candidate HandbookARIZONA Misconduct Timed ExaminationIf you engage in any of the following conduct during theexamination you may be dismissed, your scores will notbe reported and examination fees will not be refunded.Examples of misconduct are when you:Following the practice examination, you will begin theactual examination. Before beginning, instructions fortaking the examination will be provided on-screen. Thefollowing time limits will be in effect for each examination. create a disturbance, are abusive or e Licensed AppraiserCertified Residential AppraiserCertified General Appraiser4 hours4 hours6 hours display and/or use electronic communications devicessuch as pagers, cellular/smart phones; talk or participate in conversation with other examinationcandidates; give or receive help or are suspected of doing so;Candidate’sPictureHere leave the Test Center during the administration; attempt to record examination questions or make notes; attempt to take the examination for someone else;Regardless of actual cost, the worth of an improvement is what it addsto the value of the whole property. This is known as the principle of are observed with personal belongings, or are observed with unauthorized notes, books or otheraids not listed on the tion. Copyrighted Examination QuestionsAll examination questions are copyrighted. It is forbiddenunder federal copyright law to copy, reproduce, record,distribute or display these examination questions by anymeans, in whole or in part. Doing so may subject you tosevere civil and criminal penalties.ExitHelp CCommentTimeBookmark 1 The computer monitors the time you spend on theexamination. The examination will terminate if you exceedthe time allowed. You may click on the Time box in thelower menu bar on the screen to monitor your time.A digital clock indicates the time remaining for you tocomplete the examination. The Time feature may beturned off during the examination. Computer LoginAfter your identification has been confirmed, you willbe directed to a testing carrel. You will be instructedon-screen to enter your identification number. Yourphotograph, taken before beginning the examination, willremain on screen throughout your examination session.This photograph will also print on your score report.Only one examination question is presented at a time.The question number appears in the lower right of thescreen. Choices of answers to the examination questionare identified as A, B, C or D. You must indicate yourchoice by either typing in the letter in the response box inthe lower left portion of the computer screen or clickingon the option using the mouse. To change your answer,enter a different option typing in the letter in the responsebox or by clicking on the option using the mouse. You maychange your answer as many times as you wish during theexamination time limit. Practice ExaminationPrior to attempting the examination, you will be giventhe opportunity to practice taking an examination on thecomputer. The time you use for this practice examinationis NOT counted as part of your examination time or score.When you are comfortable with the computer testingprocess, you may quit the practice session and begin thetimed examination.To move to the next question, click on the forward arrow( ) in the lower right portion of the screen. This actionwill move you forward through the examination questionby question. If you wish to review any question(s), clickthe backward arrow ( ) or use the left arrow key to movebackward through the examination.8

Candidate HandbookARIZONAAn examination question may be left unanswered forreturn later in the examination session. Questions mayalso be bookmarked for later review by clicking in theblank square to the right of the Time button.converted to scaled scores to maintain a consistencyin the meaning of scores, regardless of when theexamination was taken or the difficulty of the examinationform.To identify all unanswered and/or bookmarked questions,click on the double arrows ( ). When the examinationis completed, the number of examination questionsanswered is reported. If not all questions have beenanswered and there is time remaining, you may return tothe examination and answer those questions. Be sure toprovide an answer for each examination question beforeexiting the examination. There is no penalty for guessing.Examinations change over time. Each examination formmay vary in difficulty, with one examination form easieror more difficult than other examination forms. However,when converting raw scores to scaled scores, it shouldnot make a difference whether candidates take an easieror more difficult examination form. With the mathematicaladjustment, the scaled score accounts for differencesby adjusting the scores up or down depending on thedifficulty of examination forms. When these adjustmentsare made, the effect is to produce an unbiased andconsistent passing standard that does not change fromone examination form to another. Candidate CommentsDuring the examination, you may make comments forany question by clicking on the Comment button to theleft of the Time button. This opens a dialogue box wherecomments may be entered. Comments will be reviewed,but individual responses will not be provided.As new forms of the examination are introduced, a certainnumber of questions in each content area are replaced

Dec 30, 2021 · ARIZONA Candidate Handbook 2 INTRODUCTION PSI Services provides a range of services to the states that use the Real Estate Appraiser Examination Program (RAP) . This booklet provides information that you will need to register for the Arizona Real Estate Appraiser Licensing/