Gold Coast Real Estate Chapter 16 Exam Questions And Answers Verified 100% Correct

Gold Coast Real Estate Chapter 16 Exam Questions And Answers Verified 100% Correct If a comparable property having three bedrooms and two baths recently sold for $126,000, and is similar in all other respects to the subject property, what value should be estimated for the subject property? (a) $118,000 (b) $122,000 (c) $126,000 (d) $130,000 - ANSWER A residence has a living area measuring 42 ft by 38 ft and a garage that measures 24 ft by 22 ft. An appraiser feels that today's cost to reproduce the living area would be $63.00 per square foot and to reproduce the garage would be $19.00 per square foot. The home, which is 5 years old, is estimated to have a useful life of 50 years. Based on this information, what is the depreciated cost of the property? Hint: Start by calculating the current reproduction cost of the property. (a) $11,058 (b) $99,522 (c) $110,580 (d) $121,638 - ANSWER If net operating income is $4,000 and the capitalization rate is 16%, what is the value of the investment property? (a) $21,000 (b) $24,360 (c) $25,000 (d) $64,000 - ANSWER An investment property has a value of $300,000. If the capitalization rate is 12%, what is the net operating income? (a) $36,000 (b) $250,000 (c) $264,000 (d) $300,000 - ANSWER What is the capitalization rate of an investment property that has a value of $450,000 and income of $56,250? (a) 8% (b) 12% (c) 12.50% (d) 87.50% - ANSWER The monthly rent of a residence that recently sold for $91,800 is $850. What is the monthly gross rent multiplier? (a) 0.09 (b) 9 (c) 10.8 (d) 108 - ANSWER A warehouse sold for $740,000. If market evidence indicates an annual gross income multiplier (GIM) of 8 is appropriate, how much income should be produced? (c) $80,937.50 (d) $92,500.00 - ANSWER As used by an appraiser, what does the term "price" refer to? (a) The asking price in the listing contract (b) The amount of money paid by a buyer to a seller in a transaction (c) The market value (d) The total cost of land, labor, and materials - ANSWER Complete the statement. Highest and best use of a property is the single use that produces the greatest return on: (a) similar properties. (b) neighboring properties. (c) properties of similar use. ( 1,081.50 a) $ ( 59,200.00 b) $ (d) the land and any improvements to it. - ANSWER If an owner built a 6 bedroom house in an area surrounded by two bedroom houses, this would be considered an overimprovement. For appraisal purposes, what would an over improvement create? (a) Physical deterioration (b) Functional obsolescence (c) External obsolescence (d) Excess depreciation - ANSWER A residence recently sold for $300,000 that was rented for $2,850 per month. What is the monthly gross rent multiplier? (a) 87 (b) 88 (c) 95 (d) 105 - ANSWER An appraiser has selected a comparable sale for inclusion in an appraisal that recently sold for $95,000. The comparable has 3 bedrooms, 2 baths and a pool. The subject has 4 bedrooms, 2 baths and no pool. Analysis by the appraiser indicates a bedroom is worth $10,000 and a pool is worth $7,500. What is the adjusted sales price of the comparable property? (a) $77,500 (b) $92,500 (c) $97,500 (d) $112,500 - ANSWER Which approach to value is typically used to estimate the value of special purpose properties? (a) Comparable Sales or Sales Comparison approach (b) Income Capitalization approach (c) Gross Income Multiplier Approach (d) Cost Depreciation Approach - ANSWER A homeowner visited a resort which contained a beautiful pool with caves and a lazy river. The homeowner then spent $100,000 to create a similar setting in their own yard.