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