Podcast
Questions and Answers
Which of the following is not considered an agent of production?
Which of the following is not considered an agent of production?
Which of the following represents a type of financial encumbrance?
Which of the following represents a type of financial encumbrance?
What is an appraiser called who is self-employed and works for multiple clients?
What is an appraiser called who is self-employed and works for multiple clients?
If an appraiser accepts an assignment based on a predetermined opinion, which section of the Ethics Rule might they violate?
If an appraiser accepts an assignment based on a predetermined opinion, which section of the Ethics Rule might they violate?
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What is the formula for the income approach to determining value?
What is the formula for the income approach to determining value?
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When valuing land using the sales comparison approach, which characteristic is least relevant?
When valuing land using the sales comparison approach, which characteristic is least relevant?
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What diminishes the value of an older house with four bedrooms but only one bathroom?
What diminishes the value of an older house with four bedrooms but only one bathroom?
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Which of the following is generally not a characteristic an appraiser looks for in comparables?
Which of the following is generally not a characteristic an appraiser looks for in comparables?
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Which area of a house does the kitchen belong to?
Which area of a house does the kitchen belong to?
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Which item is included only for comparables in the URAR form's sales comparison grid?
Which item is included only for comparables in the URAR form's sales comparison grid?
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What condition is NOT required for a property's selling price to be a reliable market value indication?
What condition is NOT required for a property's selling price to be a reliable market value indication?
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Which of these is included in an appraisal report to prevent unwarranted conclusions?
Which of these is included in an appraisal report to prevent unwarranted conclusions?
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Under which scenario can a state-licensed appraiser perform a federally related appraisal?
Under which scenario can a state-licensed appraiser perform a federally related appraisal?
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Which term best describes a decrease in property value due to external factors?
Which term best describes a decrease in property value due to external factors?
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What is NOT a component of a physical appraisal report?
What is NOT a component of a physical appraisal report?
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What type of obsolescence is caused by a property's design or functionality limitations?
What type of obsolescence is caused by a property's design or functionality limitations?
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When should a property's current use change according to its vacant land value?
When should a property's current use change according to its vacant land value?
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Which of the following is not a consideration when determining what is to be appraised?
Which of the following is not a consideration when determining what is to be appraised?
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How is the value of the leasehold affected when the contract rent is less than the market rent due to a long lease?
How is the value of the leasehold affected when the contract rent is less than the market rent due to a long lease?
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What is the most likely conclusion from adjusted value indicators of $418,000, $425,000, $454,000, and $455,000, with fewer adjustments to the first two properties?
What is the most likely conclusion from adjusted value indicators of $418,000, $425,000, $454,000, and $455,000, with fewer adjustments to the first two properties?
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Which principle of value serves as the theoretical basis for the sales comparison approach to value?
Which principle of value serves as the theoretical basis for the sales comparison approach to value?
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What is the term for a horizontal member used to support the load of a floor or ceiling?
What is the term for a horizontal member used to support the load of a floor or ceiling?
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What likely issue arises when a house has serious termite damage to its foundation?
What likely issue arises when a house has serious termite damage to its foundation?
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What happens to the market perception of a property with long-term low contract rents when market rents rise?
What happens to the market perception of a property with long-term low contract rents when market rents rise?
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The cost of repairing the damage is greater than the increase in value resulting from fixing the damage. This is an example of:
The cost of repairing the damage is greater than the increase in value resulting from fixing the damage. This is an example of:
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Which transaction would not be considered federally related?
Which transaction would not be considered federally related?
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A house was built 25 years ago. Its physical condition is better than average for a house of that age. The house has a/an ___________ age of 25 years.
A house was built 25 years ago. Its physical condition is better than average for a house of that age. The house has a/an ___________ age of 25 years.
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A comparable sale older than _____ usually must not be considered, because market conditions will have changed too much.
A comparable sale older than _____ usually must not be considered, because market conditions will have changed too much.
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The lot and block method of legal description is most commonly used when describing:
The lot and block method of legal description is most commonly used when describing:
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An investment is expected to earn an 18% return per year, compounding annually. The initial amount of the investment is $1,000. At the end of two years, what will the investment be worth?
An investment is expected to earn an 18% return per year, compounding annually. The initial amount of the investment is $1,000. At the end of two years, what will the investment be worth?
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Of the following, the simplest method of estimating construction costs is the:
Of the following, the simplest method of estimating construction costs is the:
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What is the term for the length of a property's boundary facing a body of water or a street?
What is the term for the length of a property's boundary facing a body of water or a street?
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What is the best definition of an appraisal?
What is the best definition of an appraisal?
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When performing the sales comparison approach, what should an appraiser do for a subject property with a one-car garage compared to a comparable with no garage?
When performing the sales comparison approach, what should an appraiser do for a subject property with a one-car garage compared to a comparable with no garage?
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In a triple net lease, which expense is a commercial tenant responsible for?
In a triple net lease, which expense is a commercial tenant responsible for?
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What type of data is collected regarding employment and commuting patterns within a metropolitan area?
What type of data is collected regarding employment and commuting patterns within a metropolitan area?
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If the annual income of a commercial property is $800,000 and the capitalization rate is 12%, what is the value of the property?
If the annual income of a commercial property is $800,000 and the capitalization rate is 12%, what is the value of the property?
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What type of foundation is supported by separate raised concrete blocks on its own footings?
What type of foundation is supported by separate raised concrete blocks on its own footings?
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What is the improved value of a property that has a residential value of $100,000, a commercial value of $160,000, and a demolition cost of $20,000?
What is the improved value of a property that has a residential value of $100,000, a commercial value of $160,000, and a demolition cost of $20,000?
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In appraisal, which option does NOT describe the sales comparison approach?
In appraisal, which option does NOT describe the sales comparison approach?
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What allows for the division of a multi-story condominium development into individual units?
What allows for the division of a multi-story condominium development into individual units?
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Which number of comparables is considered to yield the lowest margin of error in market analysis?
Which number of comparables is considered to yield the lowest margin of error in market analysis?
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What term refers to the return of the investment capital expected by an investor?
What term refers to the return of the investment capital expected by an investor?
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Which formula is applied in the cost approach to property valuation?
Which formula is applied in the cost approach to property valuation?
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What is a key characteristic of the government survey system in land division?
What is a key characteristic of the government survey system in land division?
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In a house, which zone does the kitchen belong to?
In a house, which zone does the kitchen belong to?
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Which condition is NOT required for a property's selling price to reliably indicate market value?
Which condition is NOT required for a property's selling price to reliably indicate market value?
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Which type of information is included in an appraisal report to prevent unwarranted conclusions?
Which type of information is included in an appraisal report to prevent unwarranted conclusions?
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Under which circumstance can a state-licensed appraiser perform a federally related appraisal?
Under which circumstance can a state-licensed appraiser perform a federally related appraisal?
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What is the primary focus of the sales comparison approach in property appraisal?
What is the primary focus of the sales comparison approach in property appraisal?
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Study Notes
Final Exam (1-14) Study Notes
- Quiz Instructions: This is a preview of the final exam.
- Question 1: Profit is not an agent of production; land, labor, and capital are.
- Question 2: A lien is a type of financial encumbrance.
- Question 3: A self-employed appraiser who performs appraisals for clients is known as a fee appraiser.
- Question 4: Accepting an assignment with a predetermined outcome may violate the Conduct section of the Ethics Rule.
- Question 5: The formula for the income approach to value is Value = Income × Rate of Return.
- Question 6: When using sales comparison to value land, comparables must be similar in highest and best use, physical characteristics and degree of development but not necessarily similar improvements.
- Question 7: An older house single bathroom and four bedrooms suffers from functional obsolescence.
- Question 8: A kitchen is part of the living zone.
- Question 9: Above-grade room count, age of property, and sales or financing concessions are considered for comparables only, not the subject property.
- Question 10: For a property sale to reliably represent market value, the sale must have been on the open market a reasonable period, typical conditions, buyer/seller not under unusual pressure, and all cash rather than financed.
- Question 11: An appraiser includes disclaimers, comparable property data, limiting conditions, and market trend data in appraisal reports to mitigate unwarranted conclusions.
- Question 12: A state-licensed (not certified) appraiser can perform a federally related appraisal if the appraised property is residential.
- Question 13: Martin County township with 75 degrees east and along Johnson Creek is a legal description.
- Question 14: Community property is a method of property ownership. Other questions such as joint tenancy are not correct.
- Question 15: External obsolescence includes issues like nearby paper mill, crime-ridden neighborhoods while outdated kitchen appliances are not.
- Question 16: The principle of highest and best use determines value by the most profitable practical use of a property.
- Question 17: Area's jobs next year, inadequate highway infrastructure, large landfills, and new environmental regulations are considered regional/community data for appraisals.
- Question 18: The economic age-life method of estimating depreciation assumes a steady loss of value.
- Question 19: A property's current use should change when vacant land value is greater than improved property value minus demolition cost.
- Question 20: The purpose of the appraisal is not a consideration when determining what is to be appraised (The subject real property interest is).
- Question 21: Because of a long lease, the value of the leasehold has dropped while the value of the leased fee has risen.
- Question 22: The adjusted value indicators of four comparable sales are 418,000,418,000, 418,000,425,000, 454,000and454,000 and 454,000and455,000. The most probable transaction value indicated, after fewer adjustments to the first two comparables, is $439,500.
- Question 23: Principle of substitution is the underpinning theory of the sales comparison method for valuation.
- Question 24: A horizontal member supporting a floor or ceiling is a joist.
- Question 25: A house with significant termite damage and costly repair exceeding the value increase, suffers from incurable physical deterioration.
- Question 26: Transaction involving a loan made directly by a savings & loan institution does not qualify as a Federally related transaction.
- Question 27: A house with a quality condition above average for its age displays effective age.
- Question 28: Comparable sales older than 6 months usually are not considered because market conditions change.
- Question 29: Lot and block method predominately describes farm properties.
- Question 30: An investment with an 18% compound annual return of 1,000willbeworth1,000 will be worth 1,000willbeworth1,392.40 in two years.
- Question 31: The simplest cost estimation method for construction is the comparative unit method.
- Question 32: The length of property's boundary facing water or street is referred to as frontage.
- Question 33: Appraisal defines the scientific or professional determination or opinion of a property's value.
- Question 34: When performing sales comparison, subtract value of garage from the subject property cost and add the comparable's value to the comparable's price.
- Question 35: Property taxes, hazard insurance and building maintenance are expenses for a commercial tenant with a triple net lease.
- Question 36: An appraiser collecting employment and commuting patterns is gathering specific data.
- Question 37: A 800,000annualincomepropertywitha12800,000 annual income property with a 12% capitalization rate has a value of 800,000annualincomepropertywitha126,666,667.
- Question 38: A foundation supported by separate raised concrete blocks is referred to a pier and beam foundation.
- Question 39: If a site's value is 100,000forresidentialand100,000 for residential and 100,000forresidentialand160,000 for commercial, with 20,000democost;theimprovedvalueforcommercialuseis20,000 demo cost; the improved value for commercial use is 20,000democost;theimprovedvalueforcommercialuseis180,000.
- Question 40: The effective date of an appraisal is when the appraisal report is issued.
- Question 41: R-value in house construction is a concern when evaluating insulation.
- Question 42: The unit-in-place method estimates construction costs by measuring quantities and multiplying by unit costs.
- Question 43: Gross living area is calculated using inside dimensions, excluding the garage.
- Question 44: Using a gross income multiplier and comparable sales, the value is estimated as $224,000.
- Question 45: Description of improvements in the URAR form does not include view.
- Question 46: The mettes and bounds system uses a point of origin.
- Question 47: Horizontal subdivision enables division of multi-story condos.
- Question 48: Five comparables provide a more reliable market representation.
- Question 49: Interest is the return on invested capital.
- Question 50: The formula for the cost approach is: Property value = Cost of Improvements - Depreciation + Land Value.
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Description
Prepare for your real estate final exam with this comprehensive study quiz. Covering essential concepts like profit as a production agent, liens, and appraisal methods, this quiz will help you reinforce your knowledge. Ensure you're ready for all exam questions with practice on key terms and principles.
