NYS Residential & General Test Outline

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You are being given access to this Federally Mandated Guideline, which every state (Including New York State) must comply with. This is the outline you must study in order to make sure you pass the state exam. Remember, dedicate 15-20 hours of study time PRIOR to the state exam. If you do not, you will not PASS. If you need additional assistance, sign up for the SMARTSTUDYTM Course. A one day course, reasonably priced to benefit our appraisal students. This web site first gives you the outline for the Residential Certification and then the Certified General Exam. If you are looking for the General Outline- Scroll Down pass the residential section

§1105.6 Uniform examination content outline for residential certification (1-4 units) Taken from the State Regs. Directly to benefit our students- Updated 2006

Residential Certification Outline for State Exam- 120 Questions 75% required to pass

	%Weight	Level of Difficulty
I. INFLUENCES ON REAL ESTATE VALUE	3-4%	Conceptual
A. Physical and Environmental B. Economic C. Governmental and Legal D. Social
II. LEGAL CONSIDERATIONS IN APPRAISAL	6-8%	Conceptual, Definitions
A. Real estate vs. real property B. Real property vs. personal property C. Limitations on real estate ownership 1. Private a. Deed restrictions b. Leases c. Mortgages d. Easements e. Liens f. Encroachments 2. Public a. Police power (1) Zoning (2) Building and fire codes (3) Environmental regulations b. Taxation (1) Property tax (2) Special assessments c. Eminent domain d. Escheat D. Legal rights and interests 1. Fee simple estate 2. Life estate 3. Leasehold interest 4. Leased fee interest 5. Other legal interests a. Easement b. Encroachment E. Forms of property ownership 1. Individual 2. Tenancies and undivided interests 3. Special ownership forms a. Condominiums b. Cooperative c. Timesharing F. Legal descriptions 1. Metes and bounds 2. Government survey 3. Lot and block G. Transfer of title 1. Basic types of deeds 2. Recordation
III. TYPES OF VALUE	3-5%	Conceptual, Definitions
A. Market Value or Value in Exchange B. Price C. Cost D. Investment Value E. Value in Use F. Assessed Value G. Insurable Value
IV. ECONOMIC PRINCIPLES	7-9%	Conceptual, Definitions
A. Anticipation B. Balance C. Change D. Competition E. Conformity F. Contribution G. Increasing and Decreasing Returns H. Substitution I. Supply and Demand J. Surplus Productivity
V. REAL ESTATE MARKETS AND ANALYSIS	5-7%	Conceptual
A. Characteristics of real estate markets 1. Availability of information 2. Changes in supply vs. demand 3. Immobility of real estate 4. Segmented markets 5. Regulations B. Absorption analysis 1. Demographic data 2. Completion 3. Absorption 4. Forecasts C. Role of money and capital markets 1. Competing investments 2. Sources of capital D. Real estate financing 1. Mortgage terms and concepts a. Mortgagor b. Mortgagee c. Principal and Interest 2. Mortgage payment plans a. Fixed rate level payment b. Adjustable rate c. Buy down d. Other 3. Types of mortgages a. Conventional b. Insured
VI. VALUATION PROCESS	4-6%	Conceptual
A. Definition of the problem 1. Purpose and use of appraisal 2. Interests to be appraised 3. Type of value to be estimated 4. Date of the value estimate 5. Limiting conditions B. Collection and analysis of data 1. National and regional trends 2. Economic base 3. Local area and neighborhood a. Employment b. Income c. Trends d. Access e. Locational convenience 4. Site and improvements C. Analysis of highest and best use D. Application and limitations of each approach to value 1. Sales comparison 2. Cost 3. Income capitalization E. Reconciliation and final value estimate F. The appraisal report
VII. PROPERTY DESCRIPTION	2-4%	Conceptual, Definitions
A. Site description 1. Utilities 2. Access 3. Topography 4. Size B. Improvement description 1. Size 2. Condition 3. Utility C. Basic construction and design 1. Techniques and materials a. Foundations b. Framing c. Finish (exterior and interior) 2. Functional utility
VIII. HIGHEST AND BEST USE ANALYSIS	5-7%	Conceptual, Definitions, Analysis/Application
A. Four tests 1. Physically possible 2. Legally permitted 3. Economically feasible 4. Maximally productive B. Vacant site or as if vacant C. As improved D. Interim use
IX. APPRAISAL STATISTICAL CONCEPTS	1-3%	Conceptual, Analysis/Application
A. Mean B. Median C. Mode D. Range E. Standard deviation
X. SALES COMPARISON APPROACH	21-24%	Conceptual, Definitions, Analysis/Application
A. Research and selection of comparable 1. Data sources 2. Verification 3. Units of comparison a. Data sources b. Size (1) Square foot (2) Acres (3) Other c. Utility (examples only) (1) Rooms (2) Beds (3) Other B. Elements of comparison 1. Property rights conveyed a. Leased fee/leasehold b. Easements c. Others 2. Financing terms and cash equivalency a. Loan payment b. Loan balance 3. Conditions of sale a. Arms length sale b. Personalty 4. Market conditions at time of contract and closing 5. Location 6. Physical characteristics C. Adjustment process 1. Sequence of adjustments 2. Dollar adjustments 3. Percentage adjustments 4. Paired sales analysis D. Application of sales comparison approach
XI. SITE VALUE	4-6%	Conceptual, Definitions, Analysis/ Application
A. Sales comparison B. Land residual C. Allocation D. Extraction E. Plottage and Assemblage
XII. COST APPROACH	8-10%	Conceptual, Definitions, Analysis/ Application
A. Steps in cost approach 1. Reproduction vs. replacement cost a. Comparative unit method b. Unit-in-place method c. Quantity survey method d. Cost service index 2. Accrued depreciation a. Types of depreciation (1) Physical deterioration (a) Curable (b) Incurable (c) Short-lived (d) Long-lived (2) Functional obsolescence (a) Curable (b) Incurable (3) External obsolescence (a) Locational (b) Economic b. Methods of estimating depreciation (1) Age-life method (2) Breakdown method and sequence of deductions (3) Market extraction of depreciation B. Application of the cost approach
XIII. INCOME APPROACH	7-9%	Conceptual, Definitions, Analysis/Application
A. Estimation of income and expenses 1. Gross market income 2. Effective gross income a. Vacancy b. Collection loss 3. Operating expenses a. Fixed expenses b. Variable expenses c. Reserve for replacements 4. Net operating income B. Operating expense ratios C. Gross rent multiplier
XIV. VALUATION OF PARTIAL INTERESTS	1-3%	Conceptual, Definitions
A. Life estates B. Undivided interest in commonly held property C. Easements D. Timeshares E. Cooperatives F. Leased fee estate G. Leasehold estate
XV. STATE AND FEDERAL STATUTES	3-6%	Conceptual, Definitions
A. New York State Executive Law, article 6-E State board of real estate appraisal Powers of the board Powers of the department Fees Certification and licensing process License and classes of certification Terms of registration Nonresident certification and licensing Nonresident certification and licensing by reciprocity Renewal certificate or license Basis for denial Principal place of business Continuing education Disciplinary proceedings Due process Hearing and judicial review Classification of services Contingent fees Retention of records B. Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), Title XI Purpose Appraisal subcommittee Appraisal foundation Appraiser qualification board Appraisal standards board
XVI. APPRAISAL STANDARDS AND ETHICS	7-11%	Conceptual, Definitions

General Certification Outline for State Exam- 135 Questions 75% required to pass

National uniform examination content outline for general certification.

Examinations for general certification shall substantially conform to the following examination content outline, which has been adopted by the Appraisal Qualification Board of the Appraisal Foundation:

	%Weight	Level of Difficulty
I. INFLUENCES ON REAL ESTATE VALUE	2-3%	Conceptual
A. Physical and Environmental B. Economic C. Governmental and Legal D. Social
II. LEGAL CONSIDERATIONS IN APPRAISAL	7-8%	Conceptual, Definitions
A. Real estate vs. real property B. Real property vs. personal property 1. Fixtures 2. Trade Fixtures 3. Machinery and equipment C. Limitations on real estate ownership 1. Private a. Deed restrictions b. Leases c. Mortgages d. Easements e. Liens f. Encroachments 2. Public a. Police power (1) Zoning (2) Building and fire codes (3) Environmental regulations b. Taxation (1) Property tax (2) Special assessments c. Eminent domain d. Escheat D. Legal rights and interests 1. Fee simple estate 2. Life estate 3. Leasehold interest 4. Leased fee interest 5. Other legal interests a. Easements b. Encroachment E. Forms of property ownership 1. Individual 2. Tenancies and undivided interests 3. Special ownership forms a. Condominiums b. Cooperative F. Legal descriptions 1. Metes and bounds 2. Government survey 3. Lot and block G. Transfer of title 1. Basic types of deeds 2. Recordation
III. TYPES OF VALUE	2-3%	Conceptual, Definitions
A. Market Value or Value in Exchange B. Price C. Cost D. Investment Value E. Value in Use F. Assessed Value G. Insurable Value H. Going Concern Value
IV. ECONOMIC PRINCIPLES	3-5%	Conceptual, Definitions
A. Anticipation B. Balance C. Change D. Competition E. Conformity F. Contribution G. Increasing and Decreasing Returns H. Opportunity Cost I. Substitution J. Supply and Demand K. Surplus Productivity
V. REAL ESTATE MARKETS AND ANALYSIS	5-7%	Conceptual, Analysis/Application
A. Characteristics of real estate markets Availability of information Changes in supply vs. demand Immobility of real estate Segmented markets Regulations B. Absorption analysis Demographic data Competition Absorption Forecasts Existing space inventory Current and projected space surplus New space C. Role of money and capital markets Competing investments Sources of capital D. Real estate financing Mortgage terms and concepts Mortgagor Mortgagee Principal and interest Mortgage plans payment Fixed rate, level payment Adjustable rate Buy down Other Types of mortgages Conventional Insured
VI. VALUATION PROCESS	2-4%	Conceptual
A. Definition of the problem 1. Purpose and use of appraisal 2. Interests to be appraised 3. Type of value to be estimated 4. Date of the value estimate 5. Limiting conditions B. Collection and analysis of data 1. National and regional trends 2. Economic base 3. Local area and neighborhood a. Employment b. Income c. Trends d. Access e. Locational convenience 4. Site and improvements C. Analysis of highest and best use D. Application and limitations of each approach to value 1. Sales comparison 2. Cost 3. Income capitalization E. Reconciliation and final value estimate F. The appraisal report
VII. PROPERTY DESCRIPTION	2-4%	Conceptual, Definitions
A. Site description Utilities Access Topography Size B. Improvement description Size Condition Utility C. Basic construction and design Techniques and materials Foundations Framing Finish (exterior and interior) Mechanical Functional utility
VIII. HIGHEST AND BEST USE ANALYSIS	5-7%	Conceptual, Definitions, Analysis/Application
A. Four tests Physically possible Legally permitted Economically feasible Maximally productive B. Vacant site or as if vacant C. As improved D. Interim use
IX. APPRAISAL MATH AND STATISTICS	3-5%	Conceptual, Analysis/Application
A. Compound interest concepts Future value of $1 Present value of $1 Future value of an annuity of $1 per period Present value of an annuity of $1 per period Sinking fund factor Installment to amortize $1 (loan constant) B. Statistical concepts used in appraisal Mean Median Mode Range Standard deviation
X. SALES COMPARISON APPROACH	10-12%	Conceptual, Definitions, Analysis/Application
A. Research and selection of comparables Data sources Verification Units of comparison Income (1) Potential gross income multiplier (2) Effective gross income multiplier (3) Overall rate Size (1) Square foot (2) Acres (3) Other Utility (examples only) (1) Motel and apartment units (2) Theater seats (3) Other B. Elements of comparison Property rights conveyed Easements Leased fee/leasehold Mineral rights Others Financing terms and cash equivalency Loan payment Loan balance Conditions of sale Arms length sale Personalty Market conditions at time of contract and closing Location Physical characteristics Tenant improvements C. Adjustment process Sequence of adjustments Dollar adjustments Percentage adjustments Paired sales analysis D. Application of sales comparison approach
XI. SITE VALUE	3-5%	Conceptual, Definitions, Analysis/Application
A. Sales comparison B. Land residual C. Allocation D. Extraction E. Ground rent capitalization F. Subdivision analysis Development cost: direct and indirect Contractor's overhead and profit Forecast absorption and gross sales Entrepreneurial profit Discounted value conclusion G. Plottage and Assemblage
XII. COST APPROACH	9-12%	Conceptual, Definitions, Analysis/Application
A. Steps in cost approach Reproduction vs. replacement cost Comparative unit method Unit-in-place method Quantity survey method Cost service index Accrued depreciation Types of depreciation (1) Physical deterioration (a) Curable (b) Incurable (c) Short-lived (d) Long-lived (2) Functional obsolescence (a) Curable (b) Incurable (3) External obsolescence (a) Locational (b) Economic Methods of estimating depreciation (1) Age-life method (2) Breakdown method and sequence of deductions (3) Market extraction of depreciation B. Application of the cost approach
XIII. INCOME APPROACH	20-24%	Conceptual, Definitions, Analysis/Application
A. Estimation of income and expenses Gross market income Effective gross income Vacancy Collection loss Operating expenses Fixed expenses Variable expenses Reserve for replacements Net operating income B. Operating statement ratios Operating expense ratio Net income ratio Break-even ratio C. Direct capitalization Relevance and limitations Overall capitalization rate Gross income multiplier and net income ratio Band of investment (mortgage equity) techniques Residual techniques Land (building value given) Building (land value given) Equity (mortgage value given) D. Cash flow estimates before tax only Operating years Estimating NOI with a change in NOI Estimating NOI using lease information Cash flow (NOI less mortgage payment) Reversion Estimating resale with a change in value Estimating resale with a terminal capitalization rate Cash flow (sale price less mortgage balance) Deductions for costs of sale and legal fees to arrive at a net reversion E. Measures of cash flow Equity dividend rate (cash on cash rate) Debt coverage ratio F. Discounted cash flow analysis (DCF) Relevance and limitations Potential gross income and expense estimate Market vs. contract rents Vacancy and lease commissions Tenant improvements and concessions Discount rates and yield rates (definition and concept but no calculations of yield rate) Discounting cash flows (from operations and reversion where all cash flows projected in dollar amounts and tables or calculators can be used)
XIV. VALUATION OF PARTIAL INTERESTS	4-6%	Conceptual, Definitions, Analysis/Application
A. Interests created by a lease Leased fee Leasehold Subleasehold Renewal options Tenant improvements Concessions B. Lease provisions Overage rent Expense stops Net leases Minimum rent Percentage rent CPI adjustments Excess rent C. Valuation considerations Identifying the cash flows to the different interest, including turnover ratios Discount rate selection for different interests Relationship between the values of the interests D. Other partial interests Life estates Undivided interest in commonly held property Easements Timeshares Cooperatives
XV. STATE AND FEDERAL STATUTES	3-6%	Conceptual, Definitions
A. New York State Executive Law, article 6-E State board of real estate appraisal Powers of the board Powers of the department Fees Certification and licensing process License and classes of certification Terms of registration Nonresident certification and licensing Nonresident certification and licensing by reciprocity Renewal certificate or license Basis for denial Principal place of business Continuing education Disciplinary proceedings Due process Hearing and judicial review Classification of services Contingent fees Retention of records B. Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), Title XI Purpose Appraisal subcommittee Appraisal foundation Appraiser qualification board Appraisal standards board
XVI. APPRAISAL STANDARDS AND ETHICS	7-11%	Conceptual, Definitions

§1105.8 Passing grade

(a) To pass the examination for residential certification, an applicant must obtain a grade of 75 percent or above.
(b) To pass the examination for general certification, an applicant must obtain a grade of 75 percent or above.

Once you study, if you are comfortable, then you should take the exam. If you still need help with your study time and how to study and prioritizing your study time, you should consider SMARTSTUDYTM -CLICK HERE- The cost is reasonable and the payoff can mean the difference between passing and failing. If you confident, then Smart study is not necessary. It is designed for those who want a competitive edge.

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