FINC 371 STUDY GUIDE LATEST QUESTIONS AND VERIFIED
ANSWERS
The five principal types of residential developments are - CORRECT ANSWER✅✅✅(a) single-family
detached houses, (b) single-family attached houses, (c) multifamily residences, (d) mobile homes and (e)
second homes.
What are the differences between condominium and cooperative ownership? What are some
advantages of these types of ownership over renting? - CORRECT ANSWER✅✅✅The owner of a
condominium holds title in fee simple while the owner of a cooperative owns stock in a corporation.
Often the co-op owner cannot dispose of his property without the consent of the corporation. The
condo owner has the freedom to choose his buyer. Ownership of these types of housing allows
deduction of taxes and interest which can offset rental charges of larger units.
What are three types of single family attached housing? What are the differences among the three? -
CORRECT ANSWER✅✅✅The three types of single-family attached housing are: (a) the townhouse,
(b) the plex and, (c) the patio house. The townhouse has an entrance for each unit and is built in a series
of five to ten units. The plex has an entrance for each unit and contains two to four units. The patio
home is constructed from lot line to lot line with an outdoor living area in an exterior garden court.
What are the three types of multifamily residential housing? What are the differences among the three?
- CORRECT ANSWER✅✅✅The three types of multifamily residential housing are: (a) the garden
apartment, generally two or three-story buildings; (b) the mid-rise, consisting of four to eight stories,
usually with an elevator; and (c) the high-rise, containing more than eight stories and multiple elevators.
Discuss some of the factors that are leading to greater acceptance of manufactured or mobile homes. -
CORRECT ANSWER✅✅✅Mobile homes have been greatly improved. They more closely resemble a
conventional house today with the inclusion of the "double-wide" and "triple-wide" assemblies.
Construction quality also has been upgraded. Owner-occupied subdivisions have enhanced the image, as
well. There is a trend to call all off-site built housing manufactured housing.
What are the principal reasons for owning a vacation home, and how do they differ from the reasons for
owning a principal residence? - CORRECT ANSWER✅✅✅Amenities are the primary factors leading to
the purchase of a second home, although investment potential is also very important because most
buyers cannot occupy their units for much of the year. Second homeowners often are looking for an
improved climate for a few weeks of the year; the possibility of retirement to this better climate is also a
factor.
, Discuss the use of timesharing in the marketing of vacation homes. - CORRECT ANSWER✅✅✅7.
Time-sharing enables the buyer to purchase the use of a second home for a specific time period each
year. Buyers thus protect a large portion of their future vacation cost from inflation and also benefit
from any appreciation in the value of their ownership interest.
Describe the steps in analyzing the market for residential real estate. - CORRECT ANSWER✅✅✅The
steps in analyzing the market for a residential project are: (a) delineation of the market area, (b) analysis
of recent trends in the market area, (c) determination of possible changes in the demand factors for the
project, and (d) analysis of the potential supply, including other possible competing projects.
What factors determine the market for a residential project? - CORRECT ANSWER✅✅✅The market
for a residential project is largely determined by employment opportunities within the relevant
commuting range.
Describe the process of financial feasibility analysis for a proposed residential project? - CORRECT
ANSWER✅✅✅10. The steps involved in determining the financial feasibility of a proposed
residential project are: (a) making assumptions regarding the cost of development, timing and financing;
(b) constructing a cash flow statement; and (c) constructing a pro forma profit-and-loss statement.
Provide a justification for federal government's decision to establish minimum education requirements
and standards of practice for appraisers. - CORRECT ANSWER✅✅✅To ensure that people engaged in
appraisal services do so in a competent and professional manner, all states have established minimum
education and experience requirements.
How many hours of experience are required for each of the categories of appraisers under AQB criteria?
- CORRECT ANSWER✅✅✅Becoming a trainee appraiser requires at least 75 hours of classroom
instruction in appraisal topics. Licensed appraisers must have completed 150 hours of classroom
instruction, must have passed a written examination, and must have completed 2,000 hours of appraisal
experience. Certified residential appraisers must have completed at least 200 hours of appraisal
education, must have passed a written examination, and must have completed at least 3,000 hours of
appraisal experience.
Based on the widely accepted definition, what is market value? - CORRECT ANSWER✅✅✅Market
value is the most probable price which a property should bring in a competitive and open market under
all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and
ANSWERS
The five principal types of residential developments are - CORRECT ANSWER✅✅✅(a) single-family
detached houses, (b) single-family attached houses, (c) multifamily residences, (d) mobile homes and (e)
second homes.
What are the differences between condominium and cooperative ownership? What are some
advantages of these types of ownership over renting? - CORRECT ANSWER✅✅✅The owner of a
condominium holds title in fee simple while the owner of a cooperative owns stock in a corporation.
Often the co-op owner cannot dispose of his property without the consent of the corporation. The
condo owner has the freedom to choose his buyer. Ownership of these types of housing allows
deduction of taxes and interest which can offset rental charges of larger units.
What are three types of single family attached housing? What are the differences among the three? -
CORRECT ANSWER✅✅✅The three types of single-family attached housing are: (a) the townhouse,
(b) the plex and, (c) the patio house. The townhouse has an entrance for each unit and is built in a series
of five to ten units. The plex has an entrance for each unit and contains two to four units. The patio
home is constructed from lot line to lot line with an outdoor living area in an exterior garden court.
What are the three types of multifamily residential housing? What are the differences among the three?
- CORRECT ANSWER✅✅✅The three types of multifamily residential housing are: (a) the garden
apartment, generally two or three-story buildings; (b) the mid-rise, consisting of four to eight stories,
usually with an elevator; and (c) the high-rise, containing more than eight stories and multiple elevators.
Discuss some of the factors that are leading to greater acceptance of manufactured or mobile homes. -
CORRECT ANSWER✅✅✅Mobile homes have been greatly improved. They more closely resemble a
conventional house today with the inclusion of the "double-wide" and "triple-wide" assemblies.
Construction quality also has been upgraded. Owner-occupied subdivisions have enhanced the image, as
well. There is a trend to call all off-site built housing manufactured housing.
What are the principal reasons for owning a vacation home, and how do they differ from the reasons for
owning a principal residence? - CORRECT ANSWER✅✅✅Amenities are the primary factors leading to
the purchase of a second home, although investment potential is also very important because most
buyers cannot occupy their units for much of the year. Second homeowners often are looking for an
improved climate for a few weeks of the year; the possibility of retirement to this better climate is also a
factor.
, Discuss the use of timesharing in the marketing of vacation homes. - CORRECT ANSWER✅✅✅7.
Time-sharing enables the buyer to purchase the use of a second home for a specific time period each
year. Buyers thus protect a large portion of their future vacation cost from inflation and also benefit
from any appreciation in the value of their ownership interest.
Describe the steps in analyzing the market for residential real estate. - CORRECT ANSWER✅✅✅The
steps in analyzing the market for a residential project are: (a) delineation of the market area, (b) analysis
of recent trends in the market area, (c) determination of possible changes in the demand factors for the
project, and (d) analysis of the potential supply, including other possible competing projects.
What factors determine the market for a residential project? - CORRECT ANSWER✅✅✅The market
for a residential project is largely determined by employment opportunities within the relevant
commuting range.
Describe the process of financial feasibility analysis for a proposed residential project? - CORRECT
ANSWER✅✅✅10. The steps involved in determining the financial feasibility of a proposed
residential project are: (a) making assumptions regarding the cost of development, timing and financing;
(b) constructing a cash flow statement; and (c) constructing a pro forma profit-and-loss statement.
Provide a justification for federal government's decision to establish minimum education requirements
and standards of practice for appraisers. - CORRECT ANSWER✅✅✅To ensure that people engaged in
appraisal services do so in a competent and professional manner, all states have established minimum
education and experience requirements.
How many hours of experience are required for each of the categories of appraisers under AQB criteria?
- CORRECT ANSWER✅✅✅Becoming a trainee appraiser requires at least 75 hours of classroom
instruction in appraisal topics. Licensed appraisers must have completed 150 hours of classroom
instruction, must have passed a written examination, and must have completed 2,000 hours of appraisal
experience. Certified residential appraisers must have completed at least 200 hours of appraisal
education, must have passed a written examination, and must have completed at least 3,000 hours of
appraisal experience.
Based on the widely accepted definition, what is market value? - CORRECT ANSWER✅✅✅Market
value is the most probable price which a property should bring in a competitive and open market under
all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and
