CE Shop KY Course Final
- ANS -
A lease with option to buy is a good home buying solution for some buyers. Which of
these statements about a lease with option to buy is FALSE? - ANS - Option
agreements usually don't include a termination date.
A residential income property has 10 units. Each apartment rents for $1,000 per month
and has two bedrooms, a bathroom, a living room, and a kitchen. What's the scheduled
rent for this property on an annual per-room basis? - ANS - Each apartment is
counted as four rooms, so each room rents for $250 per month, making the annual
per-room rate $3,000.
Adella received money for her down payment in the form of a tax credit for a portion of
the mortgage interest paid per year on her federal tax return. This tax credit is known as
a __________________________. - ANS - Mortgage credit certificate
An appraiser is most likely to use the cost approach for which of the following
properties? - ANS - Movie theater
An appraiser will identify the general and specific data needed for an appraisal. What
will determine the type of additional data needed? - ANS - The type of property
Appraiser Independence Requirements (AIR) in 2010 - ANS - requires appraisers to
be- certified or licensed in the state where the appraisal is located-knowledge about the
local real estate market- qualified to appraise the subject property
Appraiser Niles uses ______ to determine a range of values based on comparing a
subject property to comparable sales. He makes sure to use some comparables that
lack features of his subject property, and others that have even more desirable features,
to balance out the comparison. - ANS - Bracketing
As part of completing an appraisal using the cost approach method, what must
appraisers do? - ANS - Complete the cost approach section of the URAR form.
, At what point in the appraisal process does an appraiser consider the values from the
three approaches and decide on the final appraisal value? - ANS - Reconciliation
Benji is a buyer's agent, and he'll receive a split of the commission paid from the sale of
Harriet's listing. The property sold for $425,000. The total commission paid from the sale
is 6%, split evenly between the buyer and seller brokerages. Benji has an agreement
with his broker that he earns 80% of the commission received. How much will Benji be
paid from this sale? - ANS - $10,200
Bracketing - ANS - is a process in which an appraiser uses both superior and inferior
units of comparison such as age, transaction price, etc., to determine a probable range
of values for a property.
Cap Rate - ANS - an annual rate of return from an income producing property- used
by investorsI/V=RI= net operating incomeV= Sales PriceR= Cap rate
Cost Approach - ANS - The process of estimating the value of a property by adding to
the estimated land value the appraiser's estimate of the reproduction or replacement
cost of the building, less depreciation.
Denise is a real estate licensee performing a market analysis. She uses the rule of
three, which means that she selects three comparables that ______. - ANS - Sold in
the last three months
External depreciation or "economic obsolescence" - ANS - A loss in value caused by
an undesirable orhazardous influence offsite; airport
Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) - ANS - that
appraisals performed in conjunction with federally related transactions must be
completed by state-certified or licensed appraisers. Federally related transactions are
not FHA insured or VA guaranteed and will not be sold to a GSE such as Fannie Mae or
Freddie Mac. Residential properties valued at $400,000 or less are exempt from federal
appraisal requirements.
For which location in a neighborhood shopping center are tenants willing to pay the
owner a bonus? - ANS - A spot in the center
For which of the following properties is the cost approach most likely to be used? - ANS
- The cost approach is not used in condo or coops and is not used as often with older
- ANS -
A lease with option to buy is a good home buying solution for some buyers. Which of
these statements about a lease with option to buy is FALSE? - ANS - Option
agreements usually don't include a termination date.
A residential income property has 10 units. Each apartment rents for $1,000 per month
and has two bedrooms, a bathroom, a living room, and a kitchen. What's the scheduled
rent for this property on an annual per-room basis? - ANS - Each apartment is
counted as four rooms, so each room rents for $250 per month, making the annual
per-room rate $3,000.
Adella received money for her down payment in the form of a tax credit for a portion of
the mortgage interest paid per year on her federal tax return. This tax credit is known as
a __________________________. - ANS - Mortgage credit certificate
An appraiser is most likely to use the cost approach for which of the following
properties? - ANS - Movie theater
An appraiser will identify the general and specific data needed for an appraisal. What
will determine the type of additional data needed? - ANS - The type of property
Appraiser Independence Requirements (AIR) in 2010 - ANS - requires appraisers to
be- certified or licensed in the state where the appraisal is located-knowledge about the
local real estate market- qualified to appraise the subject property
Appraiser Niles uses ______ to determine a range of values based on comparing a
subject property to comparable sales. He makes sure to use some comparables that
lack features of his subject property, and others that have even more desirable features,
to balance out the comparison. - ANS - Bracketing
As part of completing an appraisal using the cost approach method, what must
appraisers do? - ANS - Complete the cost approach section of the URAR form.
, At what point in the appraisal process does an appraiser consider the values from the
three approaches and decide on the final appraisal value? - ANS - Reconciliation
Benji is a buyer's agent, and he'll receive a split of the commission paid from the sale of
Harriet's listing. The property sold for $425,000. The total commission paid from the sale
is 6%, split evenly between the buyer and seller brokerages. Benji has an agreement
with his broker that he earns 80% of the commission received. How much will Benji be
paid from this sale? - ANS - $10,200
Bracketing - ANS - is a process in which an appraiser uses both superior and inferior
units of comparison such as age, transaction price, etc., to determine a probable range
of values for a property.
Cap Rate - ANS - an annual rate of return from an income producing property- used
by investorsI/V=RI= net operating incomeV= Sales PriceR= Cap rate
Cost Approach - ANS - The process of estimating the value of a property by adding to
the estimated land value the appraiser's estimate of the reproduction or replacement
cost of the building, less depreciation.
Denise is a real estate licensee performing a market analysis. She uses the rule of
three, which means that she selects three comparables that ______. - ANS - Sold in
the last three months
External depreciation or "economic obsolescence" - ANS - A loss in value caused by
an undesirable orhazardous influence offsite; airport
Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) - ANS - that
appraisals performed in conjunction with federally related transactions must be
completed by state-certified or licensed appraisers. Federally related transactions are
not FHA insured or VA guaranteed and will not be sold to a GSE such as Fannie Mae or
Freddie Mac. Residential properties valued at $400,000 or less are exempt from federal
appraisal requirements.
For which location in a neighborhood shopping center are tenants willing to pay the
owner a bonus? - ANS - A spot in the center
For which of the following properties is the cost approach most likely to be used? - ANS
- The cost approach is not used in condo or coops and is not used as often with older
