Real Estate Quiz PDF

12/3/24, 4:01 PM Quiz: Final Exam. (1-14) Final Exam. (1-14)  This is a preview of the published version of the quiz Started: Dec 3 at 3:54pm Quiz Instructions  Question 1 2 pts Which of the following is not an agent of produc...

12/3/24, 4:01 PM Quiz: Final Exam. (1-14) Final Exam. (1-14)  This is a preview of the published version of the quiz Started: Dec 3 at 3:54pm Quiz Instructions  Question 1 2 pts Which of the following is not an agent of production? Land Labor Capital Profit  Question 2 2 pts Which of the following is a type of financial encumbrance? Easement Lien Profit Private restriction  Question 3 2 pts An appraiser who is self-employed and performs appraisals for different clients is known as a/an: staff appraiser assessor fee appraiser certified appraiser https://sjeccd.instructure.com/courses/44810/quizzes/299957/take?preview=1 1/15 12/3/24, 4:01 PM Quiz: Final Exam. (1-14)  Question 4 2 pts An appraiser that accepts an assignment predicated on reporting a predetermined opinion or conclusion may be guilty of violating which section of the Ethics Rule? The Record Keeping section The Conduct section The Confidentiality section None of the above  Question 5 2 pts The formula that is the basis for the income approach to value is: Value = Income × Rate of Return Value = Income ÷ Rate of Return Value = Amount of Investment × Rate of Return Value = Construction Cost - Depreciation + Land Value  Question 6 2 pts When using the sales comparison approach to valuing land, an appraiser must look for all of the following characteristics for comparables, except: similar highest and best use similar physical characteristics similar degree of development similar improvements  Question 7 2 pts An older house has four bedrooms but only one bathroom. This house's value is diminished because of: physical deterioration functional obsolescence because of a deficiency https://sjeccd.instructure.com/courses/44810/quizzes/299957/take?preview=1 2/15 12/3/24, 4:01 PM Quiz: Final Exam. (1-14) functional obsolescence because of a superadequacy external obsolescence  Question 8 2 pts In a house, the kitchen would be considered to be a part of the: living zone working zone sleeping zone circulation zone  Question 9 2 pts In the URAR form on the sales comparison grid, which of the following would be included only for comparables, not for the subject property? Above-grade room count Gross living area Age of property Sales or financing concessions  Question 10 2 pts For a property's selling price to be a reliable indication of market value, the sale must have taken place under all of the following conditions, except: Buyer and seller must have been typically well informed as to the condition of the subject property and the market The property must have been exposed on the open market for a reasonable period of time Buyer and seller must not have been subject to unusual pressure to act The transaction must have been all cash, rather than subject to financing  Question 11 2 pts https://sjeccd.instructure.com/courses/44810/quizzes/299957/take?preview=1 3/15 12/3/24, 4:01 PM Quiz: Final Exam. (1-14) An appraiser includes these in an appraisal report to make it less likely that readers of the report will draw unwarranted conclusions: disclaimers of liability comparable property data limiting conditions market trend data  Question 12 2 pts Under which of these circumstances could a state-licensed (as opposed to state-certified) appraiser perform the appraisal, if the transaction is federally related? Appraisal of an apartment building valued at $800,000 Appraisal of a single-family residence valued at $300,000 Appraisal of a single-family residence valued at $1,200,000 Appraisal of a farm valued at $700,000  Question 13 2 pts Which of the following is not an adequate legal description? Martin County township 2 North, starting at NW corner of the NE ¼ of Section 12, then South for 800 feet, then North 75 degrees East for 1020 feet, then North for a distance of 650 feet, then West along center line of Johnson Creek to point of beginning The SE ¼ of the NW ¼ of the N ½ of Section 32, Township 2 North, Range 8 East, Willamette Meridian, Klickitat County, Washington Lot 8, Block 2 of the Oak Pines subdivision, as recorded in Book 230, Page 19 in the office of the Lee County recorder 4178 Stucco Street, Lompoc, CA, 93436  Question 14 2 pts Which of the following is not a method of sharing ownership of an entire property? Community property https://sjeccd.instructure.com/courses/44810/quizzes/299957/take?preview=1 4/15 12/3/24, 4:01 PM Quiz: Final Exam. (1-14) Easement appurtenant Joint tenancy Tenancy in common  Question 15 2 pts Which of the following would not be an example of external obsolescence? Nearby paper mill Crime-ridden neighborhood Outdated kitchen appliances Local economic downturn  Question 16 2 pts The principle of ______ states that the value of a property is determined by the most profitable use to which the property may be reasonably and legally put. consistent use conformity highest and best use balance  Question 17 2 pts Which of the following would not be a consideration for an appraiser collecting regional and community data? The area's major employer plans to add significant numbers of jobs next year The area has inadequate highway infrastructure, creating terrible traffic There is a large landfill located several blocks from the property New environmental regulations will curb suburban development in the area's outlying regions  https://sjeccd.instructure.com/courses/44810/quizzes/299957/take?preview=1 5/15 12/3/24, 4:01 PM Quiz: Final Exam. (1-14) Question 18 2 pts Which of the following methods of estimating depreciation is based on the assumption that an improvement loses value at a steady rate over the course of its economic life? Market extraction method Cost to cure method Breakdown method Economic age-life method  Question 19 2 pts A property's current use should change when the vacant land value is: greater than the improved property value plus the demolition cost less than the improved property value plus the demolition cost greater than the improved property value minus the demolition cost less than the improved property value minus the demolition cost  Question 20 2 pts When determining what is to be appraised, which of the following is not a consideration? The use of the appraisal The real property that is the appraisal subject The real property interest to be appraised The purpose of the appraisal  Question 21 2 pts Because of a long lease term, the contract rent under a lease is significantly less than the market rent. An appraiser evaluating the leasehold and leased fee interests would find that the value of the leasehold has: dropped, and the value of the leased fee has risen stayed the same, and the value of the leased fee has risen https://sjeccd.instructure.com/courses/44810/quizzes/299957/take?preview=1 6/15 12/3/24, 4:01 PM Quiz: Final Exam. (1-14) risen, and the value of the leased fee has dropped dropped, and the value of the leased fee has stayed the same  Question 22 2 pts An appraiser determines that the adjusted value indicators for four comparables are $418,000, $425,000, $454,000, and $455,000. The appraiser had to make fewer adjustments to the first two comparables. The appraiser is most likely to conclude that the value indicated by the sales comparison approach is: $422,000 $438,000 $439,500 $454,500  Question 23 2 pts Which principle of value is the theoretical basis for the sales comparison approach to value? Principle of balance Principle of contribution Principle of conformity Principle of substitution  Question 24 2 pts A horizontal member used to support the load of a floor or ceiling is a: joist stud rafter sill  Question 25 2 pts https://sjeccd.instructure.com/courses/44810/quizzes/299957/take?preview=1 7/15 12/3/24, 4:01 PM Quiz: Final Exam. (1-14) A house has serious termite damage to its foundation. The cost of repairing the damage is greater than the increase in value resulting from fixing the damage. This is an example of: curable physical deterioration incurable physical deterioration curable functional obsolescence incurable functional obsolescence  Question 26 2 pts Which of the following transactions would not be considered federally related? A transaction involving a loan made by an FDIC-insured bank A transaction involving a loan that will be sold to Fannie Mae A transaction valued at $60,000 A transaction involving a loan made by a savings and loan that borrows funds from the Federal Reserve  Question 27 2 pts 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. actual economic effective functional  Question 28 2 pts A comparable sale older than _____ usually must not be considered, because market conditions will have changed too much. 4 months 6 months https://sjeccd.instructure.com/courses/44810/quizzes/299957/take?preview=1 8/15 12/3/24, 4:01 PM Quiz: Final Exam. (1-14) 1 year 2 years  Question 29 2 pts The lot and block method of legal description is most commonly used when describing: farm properties industrial properties irregularly shaped lots bordering water residential subdivisions  Question 30 2 pts 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? $1,212.40 $1,360 $1,392.40 $1,429.50  Question 31 2 pts Of the following, the simplest method of estimating construction costs is the: comparative unit method unit-in-place method quantity survey method capitalization method  Question 32 2 pts What is the term for the length of a property's boundary facing a body of water or a street? https://sjeccd.instructure.com/courses/44810/quizzes/299957/take?preview=1 9/15 12/3/24, 4:01 PM Quiz: Final Exam. (1-14) Depth Plottage Orientation Frontage  Question 33 2 pts An appraisal is best defined as a/an: scientific determination of value opinion of value average of selected value indicators process for exactly calculating value  Question 34 2 pts The subject property has a one-car garage. Comparable #1 has no garage. An appraiser performing the sales comparison approach should: add the value added by a garage to the comparable's price add the value added by a garage to the subject property's value subtract the value added by a garage from the comparable's price subtract the value added by a garage from the subject property's value  Question 35 2 pts A commercial tenant has a triple net lease. For which of the following expenses would she be responsible? Property taxes Hazard insurance Building maintenance https://sjeccd.instructure.com/courses/44810/quizzes/299957/take?preview=1 10/15 12/3/24, 4:01 PM Quiz: Final Exam. (1-14) All of the above  Question 36 2 pts An appraiser collects data regarding employment and commuting patterns within a metropolitan area. This would be considered: general data specific data competitive supply and demand data comparable property data  Question 37 2 pts The annual income of a commercial property is $800,000. An appraiser values the property using a 12% capitalization rate. What is the value of the property? $96,000 $909,090 $6,666,666 $9,600,000  Question 38 2 pts A foundation where a house is supported by a number of separate raised concrete blocks, each on its own footing, is a: monolithic slab foundation foundation wall foundation slab-on-grade foundation pier and beam foundation  Question 39 2 pts A site is improved with a single-family residence. If vacant, the value of the site for a residential use would be $100,000. However, the site is zoned so that a commercial use is allowed, and if vacant, its https://sjeccd.instructure.com/courses/44810/quizzes/299957/take?preview=1 11/15 12/3/24, 4:01 PM Quiz: Final Exam. (1-14) value for a commercial use would be $160,000. The cost of demolishing the existing structure is $20,000. What is the value of the property as improved for commercial use? $80,000 $140,000 $160,000 $180,000  Question 40 2 pts The effective date of an appraisal is the: date the appraisal is requested date of the valuation date the appraisal report is prepared date the appraisal is issued  Question 41 2 pts In house construction, R-value is a concern when evaluating the quality of the: plumbing electrical system air conditioning insulation  Question 42 2 pts Which method of construction cost estimation asks the appraiser to measure the quantities of various building components, such as floor space, roof area, doors, and windows, and multiply each component by its unit cost? Comparative unit method Unit-in-place method https://sjeccd.instructure.com/courses/44810/quizzes/299957/take?preview=1 12/15 12/3/24, 4:01 PM Quiz: Final Exam. (1-14) Quantity survey method Cost index tracking  Question 43 2 pts A building's gross living area is measured according to: outside dimensions, including the garage outside dimensions, excluding the garage inside dimensions, including the garage inside dimensions, excluding the garage  Question 44 2 pts An appraiser is using a gross income multiplier rather than a capitalization rate in order to perform the income approach to value. He finds that Comparable #1 sold for $196,000 and rents for $1,400 per month, while Comparable #2 sold for $210,000 and rents for $1,500 per month. If the subject property rents for $1,600 per month, what is the most likely value indicator for the subject property? $203,000 $211,600 $224,000 $248,000  Question 45 2 pts Description of the improvements, on the URAR form report, would include all of the following except: view foundation heating and cooling kitchen equipment  Question 46 2 pts https://sjeccd.instructure.com/courses/44810/quizzes/299957/take?preview=1 13/15 12/3/24, 4:01 PM Quiz: Final Exam. (1-14) Which of the following systems of land description would use a point of beginning? Allodial system Metes and bounds system Government survey system Lot and block system  Question 47 2 pts Division of a multi-story condominium development into individual units is made possible through: horizontal subdivision vertical subdivision easements joint tenancy  Question 48 2 pts Which sample of the marketplace would be considered to have the lowest margin of error, and thus be most reliable? 3 comparables 5 comparables 7 comparables 10 comparables  Question 49 2 pts An investor expects two things: repayment of invested capital, and a profit as compensation for the risk associated with the investment. The return of the investment capital is known as: recapture interest yield https://sjeccd.instructure.com/courses/44810/quizzes/299957/take?preview=1 14/15 12/3/24, 4:01 PM Quiz: Final Exam. (1-14) equity  Question 50 2 pts The formula applied when using the cost approach to value is: Property value = Cost of improvements + Depreciation of improvements + Land value Property value = Cost of improvements - Depreciation of improvements + Land value Property value = Cost of improvements - Depreciation of improvements - Land value Property value = Land value - Cost of improvements + Depreciation of improvements Not saved Submit Quiz https://sjeccd.instructure.com/courses/44810/quizzes/299957/take?preview=1 15/15