10 free, exam-style National Uniform Appraiser Examination (NUAE) practice questions with answers and explanations. No signup required. Work through them below, then take the full free NUAE practice test to study every exam domain.
These 10 free NUAE questions are organized by exam domain, so you can see how each part of the National Uniform Appraiser Examination blueprint is tested. Reveal the answer and explanation under each question.
A developer is evaluating a vacant parcel for potential construction of a mixed-use building. The proposed use complies with zoning regulations and the site can physically support the structure. An economic feasibility study shows the projected income will not support the development cost. Which highest and best use test does this use fail?
Correct answer: C - Financially feasible
A property sold last year for $425,000. It cost $390,000 to build, and an appraiser now estimates its market value at $440,000. Which statement BEST describes the relationship among these three figures?
Correct answer: C - Each figure measures something different: expenditure to create, amount paid, and present worth of future benefits
A commercial property is leased to a single tenant at $4,500 per month under a long-term lease. Current market rent for comparable space is $6,200 per month. Compared to the fee simple value, the leased fee interest is MOST likely:
Correct answer: B - Less, because the contract rent is below market rent
In the sales comparison approach, a comparable property has a two-car garage while the subject property has only a one-car garage. Market data indicates the value contribution of the second garage bay is $12,000. What adjustment should the appraiser make?
Correct answer: B - Subtract $12,000 from the comparable's sale price
When applying the sales comparison approach, an appraiser must adjust for both transactional and property-related elements of comparison. Which element should be adjusted FIRST?
Correct answer: D - Real property rights conveyed
A major employer closes its factory, causing reduced housing demand and declining property values throughout the surrounding area. An appraiser analyzing a nearby residential property should categorize this value loss as:
Correct answer: A - External obsolescence caused by economic forces
A 40-unit apartment building has a potential gross income of $600,000 per year. Market data supports a 7% vacancy and collection loss rate. Annual operating expenses total $198,000, which includes property taxes, insurance, management fees, and reserves for replacement. What is the net operating income?
Correct answer: A - $360,000
An appraiser is deriving an overall capitalization rate using the band of investment method. Market data indicates a 70% loan-to-value ratio with a mortgage constant of 0.0785 and an equity dividend rate of 11.5%. What is the indicated overall rate?
Correct answer: D - 0.0895
An appraiser completes an appraisal for a mortgage lender. Six months later, the borrower's attorney contacts the appraiser and requests a copy of the report for a pending lawsuit. Under USPAP's Ethics Rule, the appraiser should:
Correct answer: C - Decline unless authorized by the client or required by due process of law
A lender requests an appraisal of a property that is currently under construction. The lender needs the value as if the improvements are complete and the building is fully occupied. The appraiser knows the building is only 60% complete. This assignment requires the use of a:
Correct answer: B - Hypothetical condition that the improvements are complete and occupied
The NUAE exam also covers these domains. Drill them in the full free practice test:
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