Real Estate

What a property actually sells for is its a. market value. b. sales price. c. replacement value. d. loan value.

Sales Price

Generally, gross rent multipliers are used in appraising which of the following? Retail space. Industrial properties. Commercial properties Single-family homes.

Single-family homes

A house oriented for maximum sunlight in winter will face north. south. east. west

South

A typical neighborhood goes through, in order, a. growth, decline, gentrification, and stability. b. growth, equilibrium, decrease, and revitalization. c. growth, equilibrium, decline, and revitalization. d. growth, decline, disintegration, and revitalization.

What is growth, equilibrium, decline, and revitalization.

Matched pairs analysis is used to determine which of these? Supply and demand. Cost. Value of adjustments. Price paid by owner.

Value of adjustments

Between the ground and a foundation slab that rests on piers is(are) the ledger boards. studs. firestops. crawl space.

crawl space

A building permit and land survey are a. direct costs of construction. b. indirect costs of construction. c. not pertinent in using the cost approach. d. None of the above.

indirect costs of construction.

A rectangular-shaped building that is 35 feet wide and 55 feet long has a perimeter of 180 feet. 180 square feet. 1,925 feet. 1,925 square feet.

180 Feet

A house comparable to the subject property sold recently for $134,000 and is very similar to the subject, except the comparable has an extra half-bath, valued at $3,600. What is the adjusted value of the comparable? a. $130,400 b. $137,600 c. $133,640 d. None of these.

130,400

A property is described in a deed as the S 1/2 of the SW 1/4 of the NW 1/4 of section 4. How many acres does the parcel contain? a. 80 b. 640 c. 20 d. 40

20

The ratio of building value to land value is approximately 4 to 1. What is the land value of a property valued at $200,000, using the allocation method? a. $50,000 b. $100,000 c. $66,667 d. $40,000

40,000

If a buyer wants a ten percent return on investment and is interested in a retail complex that produces a net operating income of $63,000 per year, what would the buyer be willing to pay for the complex? a. $6,300.000 b. $630,000 c. $63,000 d. $69,300

630,000

House A sold recently for $287,000; house B sold recently for $296,000. the properties are very similar, except that house B has a swimming pool. What difference in value could be attributed to the presence of the swimming pool? a. The pool's depreciated replacement cost. b. The pool's full replacement cost. c. $9,000. d. None of the above.

9,000

Operating Expenses/ Effectje Gross Income

= Operating ecpemse Ratio

Operating expense + Debt services

=breakeven ratio

Net operating income/ Effective gross income

=net income ratio

In the U.S. government survey system, a one-square mile area, or 640 acres, is referred to as a township. tract. section. block.

A section

A feature that is present in the subject property and not present in a comparable property will mean what kind of price adjustment? Addition. Subtraction. Multiplication. Division.

Addition.

Which room is not included in room count

Bathroom

A time-share is always a(n) a. right to use property. b. estate interest. c. Both a and b. d. Neither a nor b.

Both a and b

A building that has an effective gross income of $75,000 and total operating expenses of $12,000 has a net ratio of a. .16 b. .0625 c. .84 d. .19

C. .84

The annuity factor for an interest rate of 10% over an investment period of 20 years is 8.514. For annual income of $30,000 on those terms, what amount must be invested. a. $352,361 b. $330,000 c. $205,400 d. $255,420

D. 255,420

To receive a 14 percent return on an investment of $500,000, what would be the required net operating income of the purchased price? a. $70,000 b. $7,000 c. $77,000 d. $700,000

D. 70,000

The formula, land net income divided by land capitalization rate equals land value, is used in estimating value by the method known as a. sales comparison. b. allocation. c. subdivision development. d. land residual.

D. Land residual

The overhang of a pitched roof that extends beyond the exterior walls of the building is called the a. gusset. b. eave. c. fascia board. d. collar beam.

Eave

What ratio results when the sales price of a property is divided by its gross monthly unfurnished rental? a. Net operating income. b. Gross rent multiplier. c. Operating sales ratio. d. Rent coverage ratio.

Gross rent multiplier.

Which appraisal approach would normally carry the most weight in valuing a strip shopping center? a. Sales comparison. b. Cost. c. Income capitalization. d. Gross rent multiplier.

Income capitalization.

The formula for the income capitalization approach is a. net operating income multiplied by rate of return equals property value. b. net operating income divided by capitalization rate equals property value. c. capitalization rate divided by net operating income equals property value. d. effective gross income minus operating expenses.

Net operating income divided by capitalization rate equals property value.

The measure of the effectiveness of insulation is its a. R-value. b. BTUs. c. grade. d. standard.

R- Value

If office space similar to that being appraised has a typical construction cost of $68.50, and the regional multiplier for the area is 1.12, what is the estimated construction cost of office space of 25,000 square feet? a. $1,918,000 b. $1,712,500 c. $1,932,000 d. $1,529,018

a. 1,918,000

The value of all improvements (less depreciation) is subtracted from total sales price to find site value in the a. sales comparison method. b. allocation method. c. abstraction method. d. capitalization method.

abstraction method.

The ratio of land value to building value is used when estimating site value by the a. sales comparison method. b. allocation method. c. subdivision development method. d. land residual method.

allocation method.

Rights, benefits and improvements that go with the land are a. appurtenances. b. encumbrances. c. chattels. d. emblements.

appurtenances.

Studs extend continuously to the second-floor ceiling in the type of construction known as platform frame. balloon frame. post and beam frame. plank and beam frame.

balloon frame.

A separate land valuation is required in the a. land residual technique. b. building residual technique. c. allocation method. d. abstraction method.

building residual technique

Retail properties are always susceptible to a. anticipation. b. change. c. conformity. d. competition.

competition

The value of any improvement to property is subject to the principle of a. competition. b. conformity. c. contribution.

contribution.

In real estate, the term improvement refers to all of the following except a. utilities. b. sewer and drainage systems. c. structures on a site. d. land in urban areas.

land in urban areas

The formula, property net income less building net income equals land net income, is used in estimating site value by the method known as a. sales comparison. b. allocation. c. subdivision development. d. land residual.

land residual.

The fact that money spent on property improvements produces a proportionate increase in income or value is an example of a. law of increasing returns. b. law of decreasing returns. c. progression. d. regression.

law of increasing returns.

Fee simple ownership could include ownership interest in all of the following except a. property owned as a joint tenant. b. a condominium. c. leasehold rights of a tenant. d. property owned as tenants in common.

leasehold rights of a tenant.

Deterioration of a building foundation is considered short-lived curable. short-lived incurable. long-lived curable. long-lived incurable.

long-lived incurable

Deterioration of building walls and celings is considered: short-lived curable. short-lived incurable. long-lived curable. long-lived incurable.

long-lived incurable.

The Uniform Standards of Professional Appraisal Practice define market value as including the a. highest price a property is likely to bring. b. lowest price a property is likely to bring. c. most probable price a property is likely to bring. d. range of values a property could bring

most probable price a property is likely to bring.

In the income capitalization approach, property value is treated as a function of a. original construction cost. b. net operating income. c. depreciation. d. sales prices of comparable properties.

operating income.

A poorly kept house that benefits from a generally well maintained surrounding neighborhood is an example of a. progression. b. regression. c. anticipation. d. conformity.

progression.

Using all three approaches to value and assigning different weights to each approach is known as a. summary. b. recapitulation. c. averaging. d. reconciliation.

reconciliation.

The period from the date of appraisal in which a building should be useful for its originally intended purpose is its a. remaining economic life. b. effective age. c. physical life. d. useful life

remaining economic life.

In using the sales comparison method, adjustments are always applied to the a. sales price of the comparable. b. value of the subject. c. Both a and b. d. Neither a nor b.

sales price of the comparable.

The underlying principle behind appraising is a. substitution. b. anticipation. c. supply and demand. d. progression.

substitution.

Income attributable to land rent that remains after the expenses of ownership are deducted, is referred to as a. surplus productivity. b. opportunity cost. c. operating income. d. capital investment.

surplus productivity