Học Thi Real Estate License ở California: Real Estate Appraisal 1. In capitalization-of-income appraising, an appraiser need not consider management expenses when: none of these the management is provided by a tenant the tenant provides management in lieu of rent the owner handles all management Hint 2. By putting together four parcels of land, each worth $1,000. a property owner creates one large parcel worth $5,000. This process is known as: appreciation of scale growth unearned increment assemblage 3. In using the market-data approach in appraising a single-familly residence, comparisons should be made as to: the entire property gross multipliers cubic footage rental income 4. In making an appraisal for a bank, an appraiser would be concerned with: the amount of the loan requested both a and b the purchase price to be paid to the seller none of these Hint 5. The best method to appraise a leased warehouse would be: income-capitalization square-footage index cubic-foot Hint 6. In appraisal of commercial property, the most important factor would be: the value of the improvements none of these the sale price the location 7. The Home Valuation Code of Conduct must be subscribed to by: lenders selling loans to Freddie Mac appraiser using the Uniformed Residential Appraisal Report all licensed appraisers all certified appraisers Hint 8. An appraiser would appraise landscaping and fences: none of these with the building separately with the land 9. Evaluation could be best described as: a method a process the estimate of value market value Hint 10. An accountant would be primarily interested in: book value market value assessed value exchange value 11. An accountant and an appraiser are both interested in depreciation. the accountant would be interested in accelerated depreciation the accountant would be interested in straight-line depreciation the appraiser would be interested in straight-line depreciation all of these are true 12. The statement "more buildings are torn down than wear out" is a definition of: economic obsolescence functional obsolescence physical deterioration none of these Hint 13. The comparison method of appraising is: used on vacant land all of these a simple method to learn not the desired method for income property 14. An appraiser is to appraise a store zoned for retail business only. As a retail store, expected income is $1,500 per month, but the property is leased on a long term least at $2,000 per month to a tenant who is using the store as a dry cleaning plant in violation of the zoning. The appraiser should: use the reproduction approach, since the present income cannot be used refuse to make the appraisal make the appraisal using $1,500 per month as the estimated income make the appraisal using $2,000 per month, since there is a long term lease Hint 15. The cost approach is most appropriate for appraising: raw land apartments service buildings commercial property Hint 16. The principle of anticipation relates to the: gross multiplier cost approach market-comparison approach income approach Hint 17. An apartment building produces a monthly rent of $1,600. A similar property with monthly rents of $2,100 recently sold for $294,000. Using this as the only data, the appraiser would say that the first apartment building is worth: $224,000 $294,000 $293,600 $247,500 Hint 18. It would be unethical for an appraiser to: neither a nor b charge an appraisal fee as a percentage of value both a and b appraise a property in which he or she has a disclosed interest Hint 19. Depth tables would be used by: an appraiser a municipal water district surveyors all of these 20. A $200,000 new apartment house is to be depreciated over 40 years. The straight mortgage on it is due in 50 years for $100,000. The land is worth $10,000. When fully depreciated, the adjusted cost basis will be: $100,000 $10,000 none of these $200,000 Hint 21. Subtracting vacancy and collection factors from gross income gives: gross profit net spendable adjusted gross net 22. The relationship between a property and a prospective purchaser is known as: utility contribution value highest and best use 23. The economic life of a frame dwelling is most nearly: 19 years 60 years 40 years 27 1/2 years Hint 24. Excess land is defined as land: any of these in excess of that used for comparable properties not utilized by the improvents that does not add to the total property value 25. Value would be best described as: present worth of future benefits potential worth comparable recent sales price highest and best use 26. An area that would most likely maintain its value would: have income units mixed in among single-family housing have people of vastly different incomes be a new area requiring no down payments have people of similar incomes Hint 27. When the demand for homes remains constant and the supply: increases, the value will increase remains the same, the value will decrease remains the same, the value wil increase diminishes, the value will increase Hint 28. The conditions of sale will affect the: price of the subject property value of the subject property cost basis of the subject property utility of the subject property Hint 29. Which of the following basic real economic characteristics is the best expression of why real estate has value? maximum utilixation of available resources high cost of replacement better prospects for speculative growth nearness to high-rent districts 30. An example of unearned income would be: none of these increased rents due to remodeling increased income due to increased demand increased value due to more selective tenants Hint 31. The principle of substitution applies in: finding an equal area balancing out amenities substituting architectural styles all of these Hint 32. A means of providing for return of your investment is: a reserve for depreciation profit depreciation a sinking fund Hint 33. Which of the following cannot be depreciated? bearing orchards a single-family house that is rented any of these land used to raise alfalfa Hint 34. Depth tables would be most likely used in appraising which kind of property? residential commercial industrial acreage Hint 35. Highest and best use refers to: the use that results in the greatest net the greatest value of improvements the most beneficial use to the community none of these Hint 36. An appraiser would most likely have the designation: MAI AAA MAIA AA Hint 37. As to the Inwood and Hoskold appraisal methods, which of the following is true? both a and b are true neither a nor b is true Hoskold is a sinking-fund method Inwood is an annuity method 38. An appraiser would not obtain accelerrated depreciation by using: any of these the sum of the digits method the 200 percent declining balance method the straight-line method Hint 39. To find a good comparable, an appraiser would be least interested in a sale: under distress conditions in which both the buyer and the seller were willing in another part of the city in an older neighborhood Hint 40. Of greatest importance to the value of a single-family residence would be: demand income de'cor supply Hint 41. An appraisal is required for: a new VA loan a probate sale all of these a new FHA loan 42. An appraiser who is concerned with the present worth of future benefits is likely using the: cost approach income approach market-comparison approach correlation method Hint 43. A factor an appraiser would consider when appraising a building would be: all of these owner's depreciation square footage book value Hint 44. As to the income capitalization method of appraising, which of the following is true? it is interested in net returns, not gross income all of these it is not a good method for single family dwellings as it does not consider the amenities of home ownership it requires the determination of an applicable capitalization rate 45. An appraisal method wherein electrical work was appraised at a price per outlet would be the: quantity-survey method comparison method capitalization method unit-in-place method Hint 46. Two identical buildings were each leased for 20 years at the same rent. One was leased as a hardware store and one as a post office. At a sale, which building would bring more money? the post office the value would depend on the cost the value would be the same the hardware store Hint 47. Such things as well-cared-for shrubbery and a fenced yard refer to: arrested depreciation the amenities of home ownership economic appreciation the stability of the neighborhood Hint 48. A broker quotes an income figure based on 100 percent occupancy with no rental incentives given. The figure quoted is: gross scheduled income net operating income bottom-line income effective gross income 49. Functional obsolescence would not be caused by: surplus utility lack of heating and cooling eccentric design the proximity of a nuisance Hint 50. A lot has three possible uses. Building a kennel would yield a net return of $87,000 on an investment of $65,000. Building an apartment house would yield a $211,000 return on a $2,552,000 investment, and building a supermarket would yeild $157,000 on an $520,000 investment. If the capitalization rate for all three investments is nine percent, then the investment that would yeild the highest income attributable to the land alone would be the: supermarket kennel cannot be computed from data given apartment building 51. The most important factor in determining the value of a single family home is its: original cost floor plan location square footage 52. Of the following reasons, which explains why replacement cost is better for new buildings than for old structures? historical influence of structure on the neighborhood difficulty in finding depreciation difficuity adjusting to 1907 materials prices the higher risks of insuring an older struture Hint 53. An appraiser is going to use the cost method in appraising two houses. One is new and one is 50 years old. The cost method: would be less effective fo the 50 yearl old house has no validity for either appraisal would be less effective for the new house would be equally effective for both appraisals Hint 54. Which of the following does not influence value? social trends cost economic trends government regulations Hint 55. In determining economic obsolescence, an appraiser would be interested in knowing whether: the building is well managed the building has exceeded its economic life the building needs repair the people in the area are doing well economically Hint 56. An appraiser would appraise an apartment house by: capitalizing the past income capitalizing anticipated future income using the reproduction method using the market-comparison method 57. An appraiser might use the principal of substitution in the: market-data approach any or all of the above income approach cost approach 58. Actual rental income is best obtained by: checking with the owner checking with the manager checking the listing checking with tenants Hint 59. Income minus operating expenses minus principal, interest, and tax payments equals: net spendable income effective gross income net gross net income Hint 60. The gross multiplier: may be expressed as an annual gross multiplier is the best method for rental units requires computation of all expenses is used promarily on single family dwellings Hint 61. To determine the highest and best use of a location, you should commence with: FEMA maps land value determination determining capitalization rate elevation charts 62. The following are all good definitions of depreciation except: it is due to wear and tear of incestment property or property used in a trade or business it is always concerned with the intrinsic factors of property,, never with the extraneous factors it includes all of the influences that reduce the value of a property below its replacement cost if new it is a loss of value from any cause Hint 63. A property value can be influenced by neighboring property. The value of a home would least likely be influenced by a neighborhood containing: mixed residential and commercial uses homes of significantly lower value large homes converted to small apartments vacant lots Hint 64. The value of a commercial lot would be least influenced by factors relating to: transportation compaction drainage fertility 65. Two properties have an appraised value of $100,000 each. One uses a capitalization rate of 10 percent and one a rate of 11 percent. The property using the 11 percent rate has an income: 11 percent less than the other property 11 percent higher than the other property 10 percent higher than the other property 10 percent less than the other property 66. An appraisal is required: for any sale of housing for a new subdivision in California all of these for an FHA loan 67. The elements of value do not include: any of these utility and demand scarcity and transferability cost and age Hint 68. To obtain a listing, a broker agrees to make a free appraisal of the property. As to this appraisal agreement, which of the following is true? it is void it is illegal the broker has violated the Real Estate Law it is valid if it is an appraisal Hint 69. The major factor in determining the value of industrial land is: corner influence depreciation front footage square footage Hint 70. As to the replacement cost method of appraising, which of the following is true? it would be the method used for a library it tends to set the upper value of a property all of these it is good as to new improvements 71. Capitalising the net income and deducting the replacement cost of the improvements gives: the land value the economic value the appraised value of the property the effective value 72. Loss of value of an expensive home because of a neighborhood of low price homes is known as: progression regression physical depreciation functional obsolescence 73. A property is 40 years old. The present owner purchased it new and has depreciated it at 2 1/2 percent per year since the, leaving no allowance for salvage or land value. The building currently is appraised at $87,000, and the land under it is worth $200,000. The book value is: zero $40,000 $287,000 minus depreciation $287,000 Hint 74. In appraising a vacant lot, an appraiser would first determine the original cost and when purchased price asked for similar lots asking price highest and best use Hint 75. Proper scientific appraisal can determine: the exact value at a future date both a and b the exact value at the time of appraisal neither a nor b Hint 76. In appraising property with great amenity value, an appraiser would use: the reproduction method the comparison method none of these capitalization Hint 77. An appraiser defines the boundaries of a neighborhood by: geographical status economic status traffic socail conformity 78. In determining net income for use in the capitalization method of appraising, an appraiser would not be concerned with the: vacancy factor property tax cost of borrowing money management costs Hint 79. An eight year old apartment building would cost $220,000 to build today. The land is worth $50,000. With a 40 year expected economic life, its net income is $27,000. The gross multiplier is 10. The desired return on this type of property is 8 1/2 percent. Using the most appicable single method to appraise the building, an appraiser would say it is worth: $226,000 the average of a, b and c $270,000 $317,647 Hint 80. The replacement cost method of appraising: tends to set the lower limit of value tends to set the upper limit of value is never used in conjunction with other methods is generally the best method for income property 81. A property is valued at $300,000 with a five percent capitalization rate. If the prospective investor wants an eight percent return on her money, the property would be valued at: $187,500 $270,000 $420,000 $480,000 Hint 82. Depreciating an apartment building $10,000 in one year would: increase the market value $10,000 decrease the market value $10,000 increase the book value $10,000 decrease the book value $10,000 Hint 83. Which one of these forces is not a force influencing value? social political demand economic Hint 84. Market value is best described as: none of these what a property will bring at a sale the utility use to the owner the cost of a property Hint 85. Inappraising an income property, an appraiser is concerned with: the continuing prospect of present income the amount of income the quality of tenants all of these Hint 86. The most important factor for the average buyer of a home is: location architectural style potential rent floor plan 87. The period for which a property can show a return attribute to the improvements is known as the property's: depreciation life chronological life economic life effective age Hint 88. The highest value would most likely be the: book value loan value assessed value market value Hint 89. The appraisal method that prices all labor and material in construction is: comparison capitalization unit-in-place quantity-survey 90. Urban blight results from: mixed property use deteriorating structures all of these lower income and educational levels 91. The most difficult aspect of utilizing the cost approach is in: determining replacement cost setting the capitalization rate determining accrued depreciation determining adjusted gross income 92. In appraising a property with two baths, the appraiser used a comparable with 2 1/2 baths. The appraiser should: disregard the difference add the cost of a half bath to the subject property subtract from the value of the subject property deduct from the sale price of the comparable Hint 93. To obtain depreciation on real estate, the real estate: must be improved property none of these must be commercial property must be a single-family dwelling Hint 94. Functional obsolescence can be created by: a land use not in conformance with the area forces outside the property itself an overimprovement deterioration of the driveway Hint 95. As to capitalization rates, which of the following is true? all of these are true lowerin the rate increases the value increasing the rate lowers the value increasing the risk increases the rate Hint 96. A property value would be adversely affected by: strict zoning enforcement deferred maintenance strong restrictive covenants a neighborhood with similar values and income levels Hint 97. Utility value would be most nearly equivalent to: cost price use value market value 98. Estimating a property's value based on its future income for specified number of years would be: the straight-line method reversionary rights the capitalization method an annuity method 99. In order to determine accrued depreciation of a residential property, each year of the economic age of a structure receives: equal weight decreasing depreciation increasing depreciation 1/27.5 of the replacement value Hint 100. To appraise a lot with a worthless, condemned building on it, an appraiser would: capitalize the value of the entire property and deduct the value of the building forget about the building add the appraisal value of the building to the value of the lot deduct the cost of demolition from the value of the lot 101. An appraiser would be most interested in the: factors extraneous to the property price to be paid by the purchaser loan requested tax appraisal Hint 102. Which of the following is the best example of functional obsolescence? decline of the neighborhood adverse zoning across the street massive cornices in an apartment building a rotted mudsill Hint 103. Cost presents a measure of ___ sacrifice either of materials of labor, and always represents a measure of ___ expenditure. Value, on the other hand, constitutes __ worths of future benefits. present, present, present present, past, past past, past, present present, future, present 104. A major problem in using the cost method to appraise an older apartment building is: determining accrued depreciation that construction materials have changed all of these that construction methods have changed Hint 105. Assenblage is closest to: residual value contribution plottage capitalization Hint 106. A capital improvement to real property would: be written off in the year it is made increase the book value by the amount the appraisal is increased increase the book value by the cost of the improvement increase its value by the cost of the improvement 107. Estimating rotal land value and adding the value of the improvemnts would: tend to set the upper limit of value tend to set the lower limit of value not be appropriate for newer construction be the best method for appraisal of a house Hint 108. As to the appraisal of a single-family dwelling, which of the following is true? capitalization of income is the preferred method the reproduction method is the preferred method the cost approach can be used on new homes the market approach is accurate only with new homes 109. The most difficult depreciation to correct would be: accelerated economic functional physical Hint 110. Demand has no effect on value unless there is also: a need purchasing power a scarcity an adequate supply Hint 111. The best appraisal would use: market comparison all of these replacement cost capitalization of income Hint 112. In using comparables to determine value, you would add to the sale price of the subject property if: the comparable had a two car garage, and the house being appraised had a three car garage the comparable was a larger house than the one being appraised the comparable had three baths, and the house being approved had two baths the comparable were on a 12,000 square foot lot while the house being appraised had a 7,000 square foot lot Hint 113. A building is in exceptionally good condition. Its effective age is: less than its actual age none of these more than its actual age the same as the actual age 114. Progression and regression in appraisal relate to: appreciation depreciation cost change Hint 115. A property is 15 years old, but an appraiser puts an age of 7 years on it since it has been kept up like new. This is an example of: effective age physical age incorrect appraisal economic age 116. Obsolescence would not include a: bad design lack of closets need of painting deteriorating neighborhood Hint 117. The best comparable property for appraising a home would be: a similar home sold at a foreclosure sale a similar property sold to a buyer who had a need for that property a home sold by an unwilling seller to a willing buyer a similar home sold by a person wanting to sell to a buyer wanting to buy Hint 118. A separate value for the land must be computed for the: market approach cost approach capitalization approach all of these Hint 119. A lot 400 feet deep lost 20 percent of its depth. What is the effect of the loss in depth on the value of the lot? the price per square foot would increase the value will decrease by 20 percent the price per front foot will increase the value will decrease in excess of 20 percent Hint 120. A property owner can protect against economic depreciation by: proper property management both a and b scheduling all maintenance promptly neither a nor b Hint 121. Neighborhood is important in real estate because: none of these traffic affects desirability real estate is immobile property in a poor neighborhood doesn't sell 122. The oldest method of appraising is: the gross multiplier comparison cost capitalization Hint 123. Which of the following is not a factor in appraising a one-family home? square footage type of construction floor plan rent 124. The subjective value of a parcel is: the exchange value the dollar value to buyer the loan value the use value to owner Hint 125. Allocating a percentage of total value to the land and a percentage to the improvements is known as: the allocation approach neither a nor b both a and b the ratio of total value to site value 126. Which of the following values is always based on the price paid? exchange value book value market value utility value Hint 127. Corner influence can most aid the value of: apartments retail stores single-family homes industrial property Hint 128. Which value bears the least relationship to the market value? loan value exchange value book value assessed value Hint 129. The principal of substitution is that: none of these locations can be freely substituted in the market a person will not pay more for a property than the cost of another property of equal utility and desirability amenities are balanced in appraising 130. In finding comparables, an appraiser uses the term adjusted sale price. This reffers to: estimate of sale price when adjusting for characteristics of a particular property none of these sale cost adjusted for inflation sale price less sale costs Hint 131. The objective value of a parcel is most nearly: market value book value loan value utility value to a seller 132. A warehouse has vertical support columns every 12 feet making it difficult to rent. This is an example of: physical deterioration all of the above functional obsolescence economic obsolescence Hint 133. Each unit in a duplex rents for $400 per month. With a price of $96,000, the monthly gross multiplier would be: 120 20 240 10 Hint 134. Putting aside $1000 a year in govermnet bonds for five years to replace the roof is an example of: a contingency reserve a sinking fund a reserve for depreciation planned depreciation 135. The appraisal principle that relates to the market approach to value is the principle of: anticipation competition conformity substitution Hint 136. Authorities say four agents contribute to gross income. Which of the following is not one of them? capital land coordination or management depreciation Hint 137. Rents in an office building became $800 less per month after street parking was made illegal. Assuming a capitalization rate of eight percent, the building suffered a loss of value of: zero $10,000 $120,000 $100,000 Hint 138. Amenities are: none of these interest payments elements of depreciation elements of beauty, utility, and convenience 139. A real estate appraisal would customanily be: an estimation of replacement cost an opinion made as of a particular date all of these an estimation of the maximum price possible 140. A building would cost $140,000 to replace, but it is appraised at $90,000. This difference is: accrued depreciation the conformity factor remainder depreciation the progression factor 141. As to economic life and physical life, which of the following is true? economic life is longer they normally are of the same duration physical life is shorter economic life is shorter Hint 142. Rising interest rates as the only economic change would affect the value of an apartment house in that the: rentals would drop value would remain unchanged value would drop value would rise Hint 143. In using the replacement-cost approach, an appraiser would not need: effective age cost when replace land value depreciation Hint 144. In appraising a house for insurance coverage, an appraiser would most likely be concerned with: the age of the house the selling price of similar homes income replacement cost 145. To offset depreciation, a person may: include the plottage value lower the rate of contemplated capitalization use a reserve-for-replacement method combine functional and economic obsolescence Hint 146. Building a $200,000 home in a neighborhood of $70,000 to $100,000 homes is an example of: functional obsolescence economic obsolescence expanded value progression Hint 147. The least important factor in appraising a home for market value would be: any special amenities the tax appraisal the neighborhood its physical condition Hint 148. The narrative form of an appraiser's report would include all except: the qualifications of the appraiser the data used with analysis the financial terms a description of the property Hint 149. The period in which a building produces income attributable to the building itself is known as: replacement period residual period economic life depreciation 150. The definition of highest and best use would contain which of the following phrase? income properties net income effective gross income multiple properties Hint 151. Economic obsolescence would generally be considered: incurable depreciation curable depreciation a result of age and wear and tear a result of poor design or construction 152. A lender would likely offer the lowest loan to value ratio loan on a loan secured by: residential income property commercial property industrial property single-family home Hint 153. During an inflationary period, interest rates: and housing prices rise and housing prices drop drop and housing prices rise rise and housing prices drop 154. The cost that is most frequently over looked in determining net income for capitalization appraising is: vacancy loss redecorating needs management expenses modernization expenses 155. A person engaged solely in the appraisal of real estate is required to: be a real estate broker none of these be a real estate salesperson be an MAI Hint