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