Học Thi Real Estate License ở California: Real Estate Appraisal Dat Hoang April 8, 2020 No Comments 1. Estimating rotal land value and adding the value of the improvemnts would: not be appropriate for newer construction tend to set the lower limit of value tend to set the upper limit of value be the best method for appraisal of a house HintThis is the cost approach, which sets ceiling on value. 2. When the demand for homes remains constant and the supply: remains the same, the value wil increase increases, the value will increase diminishes, the value will increase remains the same, the value will decrease HintSupply and demand. 3. 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: growth assemblage unearned increment appreciation of scale 4. A broker quotes an income figure based on 100 percent occupancy with no rental incentives given. The figure quoted is: bottom-line income gross scheduled income effective gross income net operating income 5. An example of unearned income would be: increased value due to more selective tenants increased rents due to remodeling none of these increased income due to increased demand HintNot planned and without effort. 6. A warehouse has vertical support columns every 12 feet making it difficult to rent. This is an example of: economic obsolescence physical deterioration functional obsolescence all of the above Hintbuilt in. 7. Estimating a property's value based on its future income for specified number of years would be: an annuity method the straight-line method reversionary rights the capitalization method 8. Market value is best described as: the utility use to the owner what a property will bring at a sale the cost of a property none of these HintWith a willing buyer and a willing seller and a reasonable time to sell. 9. Utility value would be most nearly equivalent to: market value use value cost price 10. The oldest method of appraising is: the gross multiplier comparison cost capitalization HintAnd the easiest to use. 11. Value would be best described as: highest and best use potential worth comparable recent sales price present worth of future benefits 12. A building is in exceptionally good condition. Its effective age is: the same as the actual age less than its actual age none of these more than its actual age 13. Which of the following values is always based on the price paid? book value exchange value utility value market value HintSince it is cost plus improvements less depreciation. 14. 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: cannot be computed from data given kennel supermarket apartment building 15. A separate value for the land must be computed for the: capitalization approach all of these market approach cost approach HintSince it is the cost to replace minus depreciation plus the value of the land. 16. 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: $10,000 $200,000 $100,000 none of these HintLand is not depreciated. 17. The comparison method of appraising is: used on vacant land not the desired method for income property a simple method to learn all of these 18. In order to determine accrued depreciation of a residential property, each year of the economic age of a structure receives: 1/27.5 of the replacement value equal weight decreasing depreciation increasing depreciation HintAn appraiser uses economic life, an accountant would use 27.5 years. Both use straight-line depreciation. 19. Of greatest importance to the value of a single-family residence would be: de'cor supply demand income HintCoupled with purchasing power. 20. In making an appraisal for a bank, an appraiser would be concerned with: the amount of the loan requested none of these both a and b the purchase price to be paid to the seller HintThey should not affect the appraised value. 21. In appraising a house for insurance coverage, an appraiser would most likely be concerned with: the age of the house income replacement cost the selling price of similar homes 22. An appraiser would be most interested in the: loan requested tax appraisal factors extraneous to the property price to be paid by the purchaser HintFor economic obsolescence. 23. An appraiser would appraise an apartment house by: using the market-comparison method using the reproduction method capitalizing anticipated future income capitalizing the past income 24. A property owner can protect against economic depreciation by: proper property management scheduling all maintenance promptly neither a nor b both a and b HintAn owner cannot protect against it because it is caused by forces outside the property. 25. Depreciating an apartment building $10,000 in one year would: decrease the market value $10,000 increase the market value $10,000 increase the book value $10,000 decrease the book value $10,000 HintThe book value equals cost plus improvements minus depreciation. 26. In using the market-data approach in appraising a single-familly residence, comparisons should be made as to: rental income gross multipliers the entire property cubic footage 27. An appraiser might use the principal of substitution in the: cost approach market-data approach income approach any or all of the above 28. The most difficult aspect of utilizing the cost approach is in: setting the capitalization rate determining accrued depreciation determining replacement cost determining adjusted gross income 29. 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 for the new house would be equally effective for both appraisals has no validity for either appraisal would be less effective fo the 50 yearl old house HintThis method is most effective for new or service buildings. 30. In using comparables to determine value, you would add to the sale price of the subject property if: the comparable was a larger house than the one being appraised the comparable were on a 12,000 square foot lot while the house being appraised had a 7,000 square foot lot the comparable had three baths, and the house being approved had two baths the comparable had a two car garage, and the house being appraised had a three car garage HintAdd to value when comparable has lesser features and deduct from value when comparable has superrior features. 31. 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: economic age effective age incorrect appraisal physical age 32. 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 valid if it is an appraisal it is void it is illegal the broker has violated the Real Estate Law HintBrokers is licensed or certified appraiser. 33. The cost approach is most appropriate for appraising: commercial property raw land apartments service buildings HintOr new structures. 34. It would be unethical for an appraiser to: appraise a property in which he or she has a disclosed interest neither a nor b both a and b charge an appraisal fee as a percentage of value HintAn undisclosed interest would be unethical. 35. The appraisal method that prices all labor and material in construction is: comparison capitalization quantity-survey unit-in-place 36. Subtracting vacancy and collection factors from gross income gives: net spendable adjusted gross gross profit net 37. As to the appraisal of a single-family dwelling, which of the following is true? the reproduction method is the preferred method capitalization of income is the preferred method the market approach is accurate only with new homes the cost approach can be used on new homes 38. Loss of value of an expensive home because of a neighborhood of low price homes is known as: regression physical depreciation progression functional obsolescence 39. Evaluation could be best described as: a process market value a method the estimate of value HintAnalysis to estimate value. 40. Actual rental income is best obtained by: checking with the manager checking the listing checking with the owner checking with tenants HintBecause of lease concessions. 41. An area that would most likely maintain its value would: have income units mixed in among single-family housing have people of similar incomes have people of vastly different incomes be a new area requiring no down payments HintNeighborhood cohesiveness. 42. A property value can be influenced by neighboring property. The value of a home would least likely be influenced by a neighborhood containing: homes of significantly lower value mixed residential and commercial uses vacant lots large homes converted to small apartments HintThe other neighboring properties significantly detract from the value. 43. Progression and regression in appraisal relate to: cost depreciation change appreciation HintChange in value due to a house's placement in relation to values in the neighborhood. 44. An appraiser defines the boundaries of a neighborhood by: traffic economic status geographical status socail conformity 45. In appraising property with great amenity value, an appraiser would use: none of these the comparison method capitalization the reproduction method HintTo balance the amenities. 46. A factor an appraiser would consider when appraising a building would be: book value all of these owner's depreciation square footage HintThe owner's book value and depreciation do not affect value. The buyer's book value is based on the price paid and depreciates based on the portion of the total price allocated to improvements. 47. An appraiser would most likely have the designation: AA MAI MAIA AAA HintMember of Appraise Institute. 48. The gross multiplier: is used promarily on single family dwellings may be expressed as an annual gross multiplier requires computation of all expenses is the best method for rental units HintIt can also be expressed as a month multiplier (usually in cases of resident property). 49. Depth tables would be most likely used in appraising which kind of property? acreage industrial commercial residential HintDepth variance can have a significant effect on value. 50. A capital improvement to real property would: increase the book value by the cost of the improvement be written off in the year it is made increase its value by the cost of the improvement increase the book value by the amount the appraisal is increased 51. Putting aside $1000 a year in govermnet bonds for five years to replace the roof is an example of: a sinking fund a reserve for depreciation planned depreciation a contingency reserve 52. The economic life of a frame dwelling is most nearly: 60 years 19 years 27 1/2 years 40 years HintIt is for tax purposes. 53. The principal of substitution is that: a person will not pay more for a property than the cost of another property of equal utility and desirability none of these locations can be freely substituted in the market amenities are balanced in appraising 54. The best method to appraise a leased warehouse would be: square-footage index income-capitalization cubic-foot HintIncome property. 55. As to capitalization rates, which of the following is true? increasing the rate lowers the value increasing the risk increases the rate all of these are true lowerin the rate increases the value HintThe rate is tied to risk, and since value by the capitalization method is determined by dividing rate into net, changing the rate changes the value. 56. Urban blight results from: all of these mixed property use deteriorating structures lower income and educational levels 57. 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 value would depend on the cost the post office the hardware store the value would be the same HintThe post office lease is more secure at lower capitalization rate. 58. An appraisal is required: for an FHA loan for a new subdivision in California for any sale of housing all of these 59. As to the Inwood and Hoskold appraisal methods, which of the following is true? Inwood is an annuity method neither a nor b is true Hoskold is a sinking-fund method both a and b are true 60. The definition of highest and best use would contain which of the following phrase? effective gross income multiple properties income properties net income HintThe highest net income allocated to the property. 61. Inappraising an income property, an appraiser is concerned with: all of these the continuing prospect of present income the quality of tenants the amount of income HintTo determine net income and capitalization rate. 62. Which of the following cannot be depreciated? bearing orchards land used to raise alfalfa a single-family house that is rented any of these HintLand is never deprciated. 63. An appraiser would not obtain accelerrated depreciation by using: the sum of the digits method the 200 percent declining balance method the straight-line method any of these HintThe others are accelerated. 64. The best appraisal would use: all of these market comparison capitalization of income replacement cost HintWith different values attached to each method (correlation). 65. Demand has no effect on value unless there is also: a need a scarcity purchasing power an adequate supply HintOtherwise, it is a "wish" 66. 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: $480,000 $270,000 $420,000 $187,500 Hint5 percent of 300,000 = $15,000 net. 67. Which one of these forces is not a force influencing value? political social economic demand HintThe other force is physical. 68. In determining net income for use in the capitalization method of appraising, an appraiser would not be concerned with the: property tax vacancy factor cost of borrowing money management costs HintInterest is not deductible in determining net for the capitalization approach, but it affects the capitalization rate. 69. 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 value will decrease by 20 percent the value will decrease in excess of 20 percent the price per square foot would increase the price per front foot will increase HintIt lost lowest value portion. 70. The most important factor in determining the value of a single family home is its: original cost square footage floor plan location 71. Functional obsolescence would not be caused by: surplus utility the proximity of a nuisance eccentric design lack of heating and cooling HintThis is economic obsolescence. 72. The subjective value of a parcel is: the dollar value to buyer the loan value the use value to owner the exchange value HintThe others are objective. 73. As to economic life and physical life, which of the following is true? economic life is shorter they normally are of the same duration economic life is longer physical life is shorter HintThis explains why "more buildings are torn down than wear out." 74. The least important factor in appraising a home for market value would be: any special amenities the tax appraisal the neighborhood its physical condition HintA previous opinion of value. 75. The most important factor for the average buyer of a home is: potential rent architectural style location floor plan 76. Building a $200,000 home in a neighborhood of $70,000 to $100,000 homes is an example of: economic obsolescence functional obsolescence expanded value progression HintMisplaced improvement. 77. In appraisal of commercial property, the most important factor would be: the location none of these the value of the improvements the sale price 78. The period in which a building produces income attributable to the building itself is known as: residual period replacement period economic life depreciation 79. The following are all good definitions of depreciation except: it includes all of the influences that reduce the value of a property below its replacement cost if new it is always concerned with the intrinsic factors of property,, never with the extraneous factors it is due to wear and tear of incestment property or property used in a trade or business it is a loss of value from any cause HintEconomic obsolescence is a factor extraneous to the property. 80. Economic obsolescence would generally be considered: a result of age and wear and tear curable depreciation incurable depreciation a result of poor design or construction 81. An appraisal method wherein electrical work was appraised at a price per outlet would be the: comparison method quantity-survey method unit-in-place method capitalization method HintPrice per installed unit. 82. Allocating a percentage of total value to the land and a percentage to the improvements is known as: neither a nor b the ratio of total value to site value the allocation approach both a and b 83. The narrative form of an appraiser's report would include all except: a description of the property the financial terms the qualifications of the appraiser the data used with analysis HintAppraisal is based on cash value. 84. 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 sale price less sale costs sale cost adjusted for inflation none of these HintUsed for comparables. 85. A property value would be adversely affected by: strong restrictive covenants a neighborhood with similar values and income levels deferred maintenance strict zoning enforcement HintThe others keep the value up. 86. The highest value would most likely be the: book value loan value assessed value market value HintThe other values are likely less than market value. 87. An appraisal is required for: a probate sale a new FHA loan a new VA loan all of these 88. The best comparable property for appraising a home would be: a similar home sold by a person wanting to sell to a buyer wanting to buy a similar property sold to a buyer who had a need for that property a similar home sold at a foreclosure sale a home sold by an unwilling seller to a willing buyer HintWilling seller and willing buyer. 89. Functional obsolescence can be created by: deterioration of the driveway an overimprovement a land use not in conformance with the area forces outside the property itself Hintbuilt-in obsolescence. 90. 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: $287,000 $287,000 minus depreciation $40,000 zero HintThe property is fully depreciated. 91. The relationship between a property and a prospective purchaser is known as: contribution value utility highest and best use 92. Which of the following is not a factor in appraising a one-family home? rent square footage floor plan type of construction 93. Authorities say four agents contribute to gross income. Which of the following is not one of them? depreciation capital land coordination or management HintThe other agent is labor. 94. Which of the following does not influence value? social trends cost economic trends government regulations HintCost is the least important element of value. 95. To offset depreciation, a person may: include the plottage value lower the rate of contemplated capitalization combine functional and economic obsolescence use a reserve-for-replacement method HintCreates a replacement reserve. 96. To obtain depreciation on real estate, the real estate: must be a single-family dwelling must be improved property none of these must be commercial property HintLand cannot be depreciated. 97. Excess land is defined as land: that does not add to the total property value any of these not utilized by the improvents in excess of that used for comparable properties 98. 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 99. The elements of value do not include: any of these utility and demand scarcity and transferability cost and age HintAnswers b and c are thr four elements of value. 100. Such things as well-cared-for shrubbery and a fenced yard refer to: the stability of the neighborhood arrested depreciation economic appreciation the amenities of home ownership HintElements of utility, beauty, and convenience. 101. Assenblage is closest to: plottage capitalization residual value contribution HintPutting together several lots to form a large parcel of land. 102. In appraising a vacant lot, an appraiser would first determine the highest and best use asking price original cost and when purchased price asked for similar lots HintValue is based on possible use. 103. An accountant would be primarily interested in: market value exchange value book value assessed value 104. In appraising a property with two baths, the appraiser used a comparable with 2 1/2 baths. The appraiser should: disregard the difference subtract from the value of the subject property add the cost of a half bath to the subject property deduct from the sale price of the comparable HintBalance amenities. 105. A building would cost $140,000 to replace, but it is appraised at $90,000. This difference is: the conformity factor remainder depreciation accrued depreciation the progression factor 106. Corner influence can most aid the value of: apartments retail stores industrial property single-family homes HintMore traffic and display area. 107. The value of a commercial lot would be least influenced by factors relating to: fertility compaction transportation drainage 108. The replacement cost method of appraising: is generally the best method for income property tends to set the upper limit of value is never used in conjunction with other methods tends to set the lower limit of value 109. A real estate appraisal would customanily be: an estimation of replacement cost an estimation of the maximum price possible all of these an opinion made as of a particular date 110. An accountant and an appraiser are both interested in depreciation. the appraiser would be interested in straight-line depreciation the accountant would be interested in straight-line depreciation all of these are true the accountant would be interested in accelerated depreciation 111. In using the replacement-cost approach, an appraiser would not need: cost when replace depreciation effective age land value HintThe appraiser is interested in the cost to replace the structure now. 112. The principle of substitution applies in: substituting architectural styles finding an equal area balancing out amenities all of these HintA person wil not pay more for a property than a private at which he or she can purchase a similarly desirable and useful property. 113. Which of the following is the best example of functional obsolescence? massive cornices in an apartment building a rotted mudsill adverse zoning across the street decline of the neighborhood HintBuilt-in obsolescence. 114. Income minus operating expenses minus principal, interest, and tax payments equals: net spendable income effective gross income net income net gross HintDo not deduct principal payments to find net income. 115. A major problem in using the cost method to appraise an older apartment building is: that construction materials have changed that construction methods have changed all of these determining accrued depreciation HintIt is based on condition, effective age, and construction. 116. The appraisal principle that relates to the market approach to value is the principle of: conformity substitution anticipation competition HintWon't pay more than necessary for an equally desirable property. 117. The Home Valuation Code of Conduct must be subscribed to by: lenders selling loans to Freddie Mac all certified appraisers appraiser using the Uniformed Residential Appraisal Report all licensed appraisers HintAlso Fannie Mae. 118. The conditions of sale will affect the: cost basis of the subject property utility of the subject property value of the subject property price of the subject property HintValue remains the same. 119. Capitalising the net income and deducting the replacement cost of the improvements gives: the appraised value of the property the economic value the land value the effective value 120. Which value bears the least relationship to the market value? exchange value book value loan value assessed value HintNo relationship to market value unless the propety was just purchased. 121. An appraiser would appraise landscaping and fences: with the building separately with the land none of these 122. Proper scientific appraisal can determine: the exact value at the time of appraisal the exact value at a future date neither a nor b both a and b HintAll that is determined is an estimate as of a particular date. 123. An appraiser who is concerned with the present worth of future benefits is likely using the: correlation method income approach cost approach market-comparison approach HintThe capitalized value of future income. 124. The cost that is most frequently over looked in determining net income for capitalization appraising is: vacancy loss management expenses redecorating needs modernization expenses 125. The major factor in determining the value of industrial land is: square footage depreciation front footage corner influence HintOr size if location were given as an answer, it would be the best answer. 126. To appraise a lot with a worthless, condemned building on it, an appraiser would: forget about the building add the appraisal value of the building to the value of the lot capitalize the value of the entire property and deduct the value of the building deduct the cost of demolition from the value of the lot 127. 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: make the appraisal using $2,000 per month, since there is a long term lease make the appraisal using $1,500 per month as the estimated income use the reproduction approach, since the present income cannot be used refuse to make the appraisal HintIt lost lowest value portion. 128. Depth tables would be used by: a municipal water district an appraiser surveyors all of these 129. 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: $294,000 $293,600 $224,000 $247,500 HintUse a monthly gross multiplier of 140. 130. 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 $120,000 $100,000 $10,000 HintThe loss is $800 x 12 months = $9,600 per year; divide by the capitalization rate. $9,600 x 0.08 = $120,000. 131. The period for which a property can show a return attribute to the improvements is known as the property's: depreciation life effective age economic life chronological life HintWhen no value is attributable to improvements, the property has exceeded its economic life. 132. During an inflationary period, interest rates: rise and housing prices drop drop and housing prices rise and housing prices rise and housing prices drop 133. A lender would likely offer the lowest loan to value ratio loan on a loan secured by: commercial property industrial property single-family home residential income property HintMost difficult to sell. 134. Which of the following basic real economic characteristics is the best expression of why real estate has value? maximum utilixation of available resources nearness to high-rent districts better prospects for speculative growth high cost of replacement 135. Of the following reasons, which explains why replacement cost is better for new buildings than for old structures? the higher risks of insuring an older struture historical influence of structure on the neighborhood difficulty in finding depreciation difficuity adjusting to 1907 materials prices HintIt is difficult to determine accrued depreciation. 136. In determining economic obsolescence, an appraiser would be interested in knowing whether: the building has exceeded its economic life the building needs repair the people in the area are doing well economically the building is well managed Hint A force outside the property. 137. 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, past, past present, future, present past, past, present present, present, present 138. Obsolescence would not include a: need of painting deteriorating neighborhood bad design lack of closets HintThis is physical depreciation; obsolescence can be functional or economic. 139. A means of providing for return of your investment is: a reserve for depreciation profit a sinking fund depreciation HintProfit is a return on your investment. 140. To determine the highest and best use of a location, you should commence with: determining capitalization rate elevation charts FEMA maps land value determination 141. As to the income capitalization method of appraising, which of the following is true? 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 it is interested in net returns, not gross income all of these 142. 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: 10 percent less than the other property 11 percent less than the other property 11 percent higher than the other property 10 percent higher than the other property 143. As to the replacement cost method of appraising, which of the following is true? it is good as to new improvements it tends to set the upper value of a property all of these it would be the method used for a library 144. Highest and best use refers to: the greatest value of improvements none of these the use that results in the greatest net the most beneficial use to the community HintAttributable to the land. 145. The objective value of a parcel is most nearly: book value utility value to a seller loan value market value 146. The principle of anticipation relates to the: income approach market-comparison approach gross multiplier cost approach HintAnticipated income. 147. 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 HintThe appraiser could adjust for the others. 148. A person engaged solely in the appraisal of real estate is required to: be a real estate broker be an MAI be a real estate salesperson none of these HintThere is a separate license. 149. Each unit in a duplex rents for $400 per month. With a price of $96,000, the monthly gross multiplier would be: 120 10 20 240 HintMonthly gross is $800 for the duplex. 150. Rising interest rates as the only economic change would affect the value of an apartment house in that the: rentals would drop value would rise value would remain unchanged value would drop HintA rising interest rate causes the capitalization rate to rise. 151. 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 $317,647 the average of a, b and c $270,000 HintUse the income capitalization method. 27,000/0.085 152. The statement "more buildings are torn down than wear out" is a definition of: functional obsolescence physical deterioration economic obsolescence none of these HintThe building exceeds its economic. 153. Amenities are: none of these interest payments elements of beauty, utility, and convenience elements of depreciation 154. In capitalization-of-income appraising, an appraiser need not consider management expenses when: the owner handles all management none of these the tenant provides management in lieu of rent the management is provided by a tenant HintThey are always to be considered. 155. The most difficult depreciation to correct would be: physical accelerated functional economic HintSince it is created by forces outside the property.