National PSI Exam Prep (2022/2023)
Graded A+
A broker is completing a CMA to determine the potential listing price of a seller's home. Which
of the following is NOT part of the final CMA given to the seller?
A) Highest and best use evaluation
B) Comparable sales analysis
C) Adjustments to past sales
D) Pictures of comparables ✔✔A
Houses in the local area have had an increase in sales price and a decrease in days on the market.
A broker who is attempting to determine the current market value for a residential listing would
get the BEST estimate of value by using
A) a GRM as the primary consideration to determine value.
B) the cost approach with reproduction estimates.
C) comparables that are no more than six months old.
D) comparables that are no more than 12 months old. ✔✔C
,Rental rates have increased by 2% in the last six months. Which appraisal principle BEST
explains this rate increase?
A) Principle of substitution
B) Principle of supply and demand
C) Principle of contribution
D) Principle of highest and best use ✔✔B
The current monthly GRM in a neighborhood is 200, and the annual income is $24,000. What is
the estimated value of a property in this neighborhood?
A) $200,000
B) $240,000
C) $400,000
D) $4,800,000 ✔✔C
The subject property has two baths and one fireplace. The property across the street sold for
$181,000 and has two baths and two fireplaces. The property behind the subject sold for
,$175,000 and has two baths and no fireplace. In the area, baths are worth $5,000 and fireplaces
are worth $3,000. What is the subject property worth?
A) $175,000
B) $177,000
C) $178,000
D) $180,000 ✔✔C
According to federal government lending regulations, a buyer purchasing a home must have an
appraisal for all the following types of financing EXCEPT
A) FHA.
B) VA.
C) loan sold to FNMA.
D) seller carry. ✔✔D
A buyer chooses a loan with an LTV ratio of 90%, which requires the purchase of PMI, instead
of a loan with an 80% LTV, which would not require the insurance. The buyer MOST likely
made this choice because
, A) if the buyer defaults, PMI will protect the buyer by paying off the full loan.
B) the buyer will make a larger down payment but have smaller monthly payments, including
PMI.
C) paying PMI will mean that all mortgage payments and homeowners association fees are
deferred in case of default.
D) the buyer wants a smaller down payment, even though the buyer will have to pay PMI. ✔✔D
A buyer is getting a new mortgage with a 95% loan-to-value ratio. The final loan amount the
lender will lend the buyer is determined by the
A) lower of the sales price or appraised value.
B) higher of the sales price or appraised value.
C) sales price only.
D) appraised value only. ✔✔A
The difference between using a partially amortized loan or an interest-only term loan is that the
partially amortized loan would result in
Graded A+
A broker is completing a CMA to determine the potential listing price of a seller's home. Which
of the following is NOT part of the final CMA given to the seller?
A) Highest and best use evaluation
B) Comparable sales analysis
C) Adjustments to past sales
D) Pictures of comparables ✔✔A
Houses in the local area have had an increase in sales price and a decrease in days on the market.
A broker who is attempting to determine the current market value for a residential listing would
get the BEST estimate of value by using
A) a GRM as the primary consideration to determine value.
B) the cost approach with reproduction estimates.
C) comparables that are no more than six months old.
D) comparables that are no more than 12 months old. ✔✔C
,Rental rates have increased by 2% in the last six months. Which appraisal principle BEST
explains this rate increase?
A) Principle of substitution
B) Principle of supply and demand
C) Principle of contribution
D) Principle of highest and best use ✔✔B
The current monthly GRM in a neighborhood is 200, and the annual income is $24,000. What is
the estimated value of a property in this neighborhood?
A) $200,000
B) $240,000
C) $400,000
D) $4,800,000 ✔✔C
The subject property has two baths and one fireplace. The property across the street sold for
$181,000 and has two baths and two fireplaces. The property behind the subject sold for
,$175,000 and has two baths and no fireplace. In the area, baths are worth $5,000 and fireplaces
are worth $3,000. What is the subject property worth?
A) $175,000
B) $177,000
C) $178,000
D) $180,000 ✔✔C
According to federal government lending regulations, a buyer purchasing a home must have an
appraisal for all the following types of financing EXCEPT
A) FHA.
B) VA.
C) loan sold to FNMA.
D) seller carry. ✔✔D
A buyer chooses a loan with an LTV ratio of 90%, which requires the purchase of PMI, instead
of a loan with an 80% LTV, which would not require the insurance. The buyer MOST likely
made this choice because
, A) if the buyer defaults, PMI will protect the buyer by paying off the full loan.
B) the buyer will make a larger down payment but have smaller monthly payments, including
PMI.
C) paying PMI will mean that all mortgage payments and homeowners association fees are
deferred in case of default.
D) the buyer wants a smaller down payment, even though the buyer will have to pay PMI. ✔✔D
A buyer is getting a new mortgage with a 95% loan-to-value ratio. The final loan amount the
lender will lend the buyer is determined by the
A) lower of the sales price or appraised value.
B) higher of the sales price or appraised value.
C) sales price only.
D) appraised value only. ✔✔A
The difference between using a partially amortized loan or an interest-only term loan is that the
partially amortized loan would result in
